What are the fundraising trends in the EdTech market?

The EdTech market raised approximately $11.3 billion between 2022 and 2025, but that headline number masks a dramatic collapse from peak to trough.

2022 started with nearly $6.9 billion in tracked funding, while 2025 closed at just $921 million, a decline of over 86% in three years.

What remains is a leaner market where investors back proven models in healthcare education, AI-powered teacher tools, and early childhood learning.

And if you want to better understand this new industry, you can download our pitch covering the EdTech market.

First, how do we define the EdTech market?

We define the EdTech market as technology-based products and services that directly support teaching, learning, assessment, or credentialing.

We include tools and content for schools and universities, online courses and tutoring, and platforms for adult and workforce learning and skills development.

We exclude generic productivity software, telecom and network infrastructure, and hardware that is not specifically designed for or bundled with learning experiences.

This is also the definition we use in our pitch about the EdTech market.

How has funding activity in the EdTech market changed over time?

2022 was by far the most active year with $6.89 billion raised across 72 deals, though this was largely driven by mega-rounds from BYJU'S ($800M and $250M), Allen Career Institute ($600M), and GoStudent ($340M).

2025 was the least active year with just $921 million raised, representing the lowest level since before the pandemic as investors remained cautious and mega-deals became rare.

Comparing to 2025: EdTech funding dropped 29% from 2024 ($1.29B), dropped 58% from 2023 ($2.17B), and collapsed 87% from 2022 ($6.89B).

If you exclude the top 2 deals from each year, the decline is less dramatic but still significant: 2022 would drop from $6.89B to $5.49B, 2023 from $2.17B to $1.73B, 2024 from $1.29B to $0.90B, and 2025 from $921M to $541M, showing the underlying market contracted by roughly 90% even without outliers.

If you're interested in this industry, please note that we regularly keep in touch and share funding updates for this market on this page, which we keep continuously updated.

We also make quarterly analyses of the funding activity in the EdTech market here.

Year	Number of Deals	Total Raised ($)	Comment
2022	72	$6.89B	Peak year driven by BYJU'S mega-rounds and strong corporate learning activity. Two-thirds of capital deployed in H1 before interest rates dampened investor appetite.
2023	58	$2.17B	Sharp 68% decline with zero pure EdTech mega-rounds above $100M. Amplify's $350M Series C was the only outlier as investors focused on proven business models.
2024	40	$1.29B	Continued contraction with AI becoming table stakes across all categories. Physics Wallah's $210M and Element451's $175M represented rare large rounds.
2025	41	$921M	Lowest funding in a decade with extreme concentration in healthcare education. AMBOSS and Lingokids captured nearly half of all capital raised.

Which startups in the EdTech market raised the largest rounds over the last few years?

These startups raised the most over the last years in the EdTech market:

• BYJU'S raised $800 million in March 2022, the largest EdTech round during this period, as India's dominant K-12 learning platform expanded its video content and personalized tutoring programs.
• Allen Career Institute raised $600 million in May 2022 from Bodhi Tree Systems to accelerate its digital transformation from India's premier offline test prep coaching institute.
• Amplify raised $350 million in May 2023, the largest pure EdTech round of that year, as Cox Enterprises made a strategic bet on K-12 curriculum and assessment.
• GoStudent raised $340 million in January 2022 from Prosus and SoftBank to expand its European online tutoring marketplace to 22 countries.
• AMBOSS raised $260 million in March 2025, the largest round of that year, to expand its medical education platform serving over 1 million healthcare professionals globally.
• Paper raised $270 million in February 2022 to scale its 24/7 tutoring platform serving nearly 2 million K-12 students through school district partnerships.
• Guild Education raised $265 million in June 2022 with Oprah Winfrey participating, as the workforce upskilling platform connected frontline workers with tuition-free degree programs.
• Multiverse raised $220 million in June 2022 to scale its apprenticeship platform as a tuition-free alternative to university for professional training.
• Physics Wallah raised $210 million in September 2024, the largest round of that year, to consolidate India's test prep market and prepare for an IPO.
• Element451 raised $175 million in December 2024 from PSG to expand its AI-powered CRM for higher education student engagement.

And, yes, we do cover most of them in our our beautiful pitch about the EdTech market.

Is the EdTech market shifting toward smaller or bigger deals?

According to our own data, the average EdTech deal size across all four years (2022-2025) was $53.5 million, though this figure is heavily skewed by the mega-rounds of 2022.

Breaking down by year, the average EdTech deal size dropped from $95.7 million in 2022 to $37.5 million in 2023, then to $32.3 million in 2024, and finally to $22.5 million in 2025. This steady decline reflects both fewer mega-rounds and more cautious check sizes as investors prioritized profitability over growth.

Even excluding the top 2 outliers each year, the EdTech market shows a clear downward trend in deal sizes, with the median falling from $22 million in 2022 to just $7 million in 2024, suggesting early-stage EdTech companies are raising smaller seed and Series A rounds.

Year	Number of Deals	Average Deal Size ($)	Deals Below $2M	Deals Above $50M
2022	72	$95.7M	8	24
2023	58	$37.5M	6	12
2024	40	$32.3M	9	5
2025	41	$22.5M	10	5
All Years	211	$53.5M	33	46

How concentrated was funding activity in the EdTech market?

EdTech funding concentration has intensified dramatically since 2022, with the top deal capturing 11.6% of total funding in 2022 but 28.2% in 2025. This shift shows investors increasingly betting big on a handful of proven EdTech winners rather than spreading capital across many startups.

The top 10 EdTech deals captured 54% of funding in 2022 but 83% in 2025, meaning the remaining 31 companies in 2025 shared just 17% of available capital. This concentration makes it harder for mid-stage EdTech startups to raise growth rounds.

Year	Number of Deals	% by Top 1	% by Top 3	% by Top 10
2022	72	11.6%	25.4%	54.2%
2023	58	16.1%	27.3%	55.4%
2024	40	16.3%	41.5%	80.2%
2025	41	28.2%	49.9%	82.6%
All Years	211	7.1%	19.5%	41.8%

Which categories in the EdTech market received the most funding?

K-12 tutoring and test preparation captured the most EdTech funding from 2022-2025, raising approximately $3.1 billion across 35+ deals. This dominance was driven by mega-rounds from BYJU'S, GoStudent, Paper, Physics Wallah, and Allen Career Institute, though activity slowed sharply after 2022 as the tutoring bubble deflated.

Corporate learning and workforce training raised approximately $1.4 billion, proving to be the most recession-resistant EdTech category. Companies like Guild Education, CoachHub, Multiverse, Eruditus, and Sana Labs attracted consistent investment as employers prioritized upskilling to retain talent.

Healthcare and medical education emerged as a breakout category by 2025, with AMBOSS ($260M) and VuMedi ($80M) together raising $340 million. Investors see medical education as more defensible than consumer EdTech because of high switching costs and clear professional outcomes.

Category Name	Number of Deals	Total Raised ($)	Startups and Amount
K-12 Tutoring and Test Prep	35+	$3.1B	BYJU'S ($1.05B), GoStudent ($435M), Paper ($270M), Physics Wallah ($210M), Allen Career Institute ($600M)
Corporate Learning and Workforce Training	30+	$1.4B	Guild Education ($265M), CoachHub ($200M), Multiverse ($220M), Eruditus ($500M), Sana Labs ($55M)
Healthcare and Medical Education	8	$520M	AMBOSS ($260M), VuMedi ($80M), Stepful ($51M), Hazel Health ($51.5M)

Who are the biggest investors in the EdTech market?

Reach Capital is the most active EdTech investor from 2022-2025, participating in 14+ deals including Handshake, Paper, Stepful, Clayful, Campus, and Teachy. Reach Capital focuses exclusively on education, which explains its dominant position in the market.

GSV Ventures participated in 9+ deals including LEAD School, Physics Wallah, Domestika, MagicSchool AI, and SigIQ.ai. GSV Ventures has been investing in EdTech for over a decade and hosts the annual ASU+GSV Summit, the largest EdTech conference.

SoftBank Vision Fund 2 backed 7 major deals including GoStudent, Paper, CoachHub, Go1, and Eruditus. SoftBank wrote some of the largest checks in EdTech history, though the fund scaled back after 2022 as valuations corrected.

Owl Ventures participated in 6+ deals including Labster, Hazel Health, Swing Education, Preply, LEAP, and Brisk Teaching. Owl Ventures is one of the largest education-focused venture funds globally.

Brighteye Ventures backed 6+ deals including Hack The Box, Sdui, Zen Educate, GoStudent, and Twenix. Brighteye Ventures is Europe's leading EdTech-focused fund.

Educapital participated in 6+ deals including Knowunity, MentorShow, Edflex, Lepaya, MyEdSpace, and Buddy.ai. Educapital is the largest EdTech fund in Europe.

General Catalyst backed 5 deals including Elevate K-12, Multiverse, Guild Education, Campus, and Lingokids. General Catalyst has been increasing its EdTech exposure through both direct investments and its Customer Value Fund.

Disclaimer: this investor list may be incomplete; we focus on publicly disclosed lead and prominent recurring investors, so some frequent minority participants may be underrepresented.

Investor	Number of Deals	Total Funded ($)	Startups
Reach Capital	14+	$580M+	Handshake, Paper, Stepful, Clayful, Campus, Teachy, Swing Education, Cartwheel, Preply, Apoia
GSV Ventures	9+	$520M+	LEAD School, Physics Wallah, Domestika, MagicSchool AI, SigIQ.ai, Creative Galileo, Disco, Campus
SoftBank Vision Fund 2	7	$1.1B+	GoStudent, Paper, CoachHub, Go1, Eruditus, 360Learning
Owl Ventures	6+	$450M+	Labster, Hazel Health, Swing Education, Preply, LEAP, Brisk Teaching
Brighteye Ventures	6+	$180M+	Hack The Box, Sdui, Zen Educate, GoStudent, Twenix, Simbel
Educapital	6+	$170M+	Knowunity, MentorShow, Edflex, Lepaya, MyEdSpace, Buddy.ai
General Catalyst	5	$650M+	Elevate K-12, Multiverse, Guild Education, Campus, Lingokids
Emerge Education	5	$80M+	Tomorrow's Education, FoondaMate, Sales Impact Academy, Colossyan, EDURINO, Loora
WestBridge Capital	4	$420M+	LEAD School, Physics Wallah, SpeakX.AI
Khosla Ventures	4	$130M+	Speak, Outsmart, Replit

What are the 2026 narratives around fundraising in the EdTech market?

These are the dominant narratives shaping fundraising in the EdTech market in 2025:

• AI-powered teacher tools are becoming a distinct EdTech category, with investors backing platforms like MagicSchool, Brisk Teaching, and SchoolAI that automate grading, lesson planning, and administrative tasks.
• Healthcare and medical education is outperforming consumer EdTech, as AMBOSS's $260M round and VuMedi's $80M round show investors prefer professional training with clear career outcomes.
• The K-12 tutoring bubble has fully deflated, with no major tutoring platforms raising above $50M in 2025 after BYJU'S and GoStudent dominated 2022 headlines.
• Early childhood EdTech remains resilient because parents continue paying for quality children's content, as proven by Lingokids raising $120M and EDURINO raising $18.7M.
• India is consolidating around a few winners in EdTech, with Physics Wallah, LEAP, and SpeakX.AI capturing most of the capital while smaller players struggle to raise.
• Corporate learning platforms are raising from strategic investors rather than traditional VCs, with PSG, JMI Equity, and TPG's Rise Fund leading major rounds.
• Language learning is splitting between AI-first apps like Speak and Praktika versus human tutoring marketplaces like Preply, with AI-first models raising larger rounds.
• European EdTech is maturing with Germany as the hub, hosting AMBOSS, Knowunity, EDURINO, and doinstruct, all of which raised significant rounds in 2025.
• Assessment and proctoring technology is attracting capital as online testing becomes permanent, with The Invigilator raising $11M for AI-powered anti-cheating software.
• Higher education CRM and student success platforms like Element451 and EdSights are raising large growth rounds as colleges prioritize retention and enrollment management.
• Seed-stage EdTech activity remains relatively stable even as growth rounds dry up, suggesting new founders continue entering the market despite the funding crunch.

Who is the author of this content?

NEW MARKET PITCH TEAM

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