These are turbulent instances. Given the circumstances, it’s hardly stunning that public markets are creaking and solely area of interest sectors stay both unaffected or in a slightly optimistic place. Edtech is not any exception.
Right now, Brighteye Ventures revealed its Half 12 months European Edtech Funding report, constructed round Dealroom’s knowledge. The report primarily focuses on funding exercise in Europe however is contextualized with what we’re seeing in different markets.
International VC funding into edtech startups totaled $6.5 billion in H1 2022 in comparison with a complete of $20.1 billion raised in 2021. This pullback in world funding can partially be defined by fewer edtech mega-rounds (over $100 million) in H1 2022 in comparison with earlier intervals.
The primary half of 2022 noticed 16 so-called mega-rounds, in comparison with 24 within the second half of 2021 and 30 within the first half of 2021. On the identical time, the variety of early-stage rounds, categorized as offers beneath $15 million, has fallen pretty persistently since a peak in H1 2018.
We count on the European edtech market to take care of some optimistic indicators of resilience, however naturally, the ecosystem can’t be resistant to the headwinds it faces.
Be aware that this doesn’t essentially mirror decrease exercise within the ecosystem — it merely signifies that extra early offers are being finished by angels and through involvement with incubators and accelerators, which aren’t comprehensively lined within the knowledge.
We have been happy to see that the European edtech ecosystem has managed to take care of most of its momentum, at the least in the meanwhile. The truth that the sector has secured $1.4 billion up to now in 2022, 40% greater than a yr earlier, demonstrates its resilience to take care of development even amid difficult circumstances.
This isn’t stunning given the inverse correlation between worsening macro employment markets and urge for food for schooling, notably out there for post-18 schooling.