Ed tech venture capital expected to return to pre-pandemic levels in 2023

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Ed tech venture capital funding is expected to return to pre-pandemic levels in 2023 after falling 49% to $10.6 billion in 2022 from a record $20.8 billion in 2021, according to a report from Holon IQ.

The United States, Europe and India in particular are expected to see venture capital growth in ed tech, with notable 2022 funding rounds for U.S. companies including a $270 million Series D round for tutoring and enrichment platform Paper and a $200 million Series F round for college student job search platform Handshake.

On the heels of the pandemic-driven digital transformation, the report forecasts continued growth for record and learning management systems. Additionally, as school systems work to address learning loss, teacher and faculty well-being, professional development, and retention challenges, the report also expects continued growth for learner and teacher support platforms.

A separate Holon IQ education market expectations survey of a global panel of 245 respondents finds an even split — 35% — reporting K-12 market conditions are substantially or moderately better or worse in their countries compared to six months ago. For a remaining 29%, conditions remained the same.

However, 40% of respondents expect the K-12 market in their country to get substantially or moderately better in the next six months, compared to 29% who foresee it getting substantially or moderately worse.

The biggest growth opportunity areas respondents said they see in the next six months are in tutoring and test prep (67%), language learning (60%) and workforce and talent (50%).

This article originally appeared in www.k12dive.com

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