Who is Funding Edtech Startups Now

Edtech funding in 2024 is experiencing a significant decline, with startups attracting just over $1 billion, the lowest in years. Annual investment and deal counts since 2019 indicate no rebound in the education space. U.S. investment mirrors this downward trend, and exit opportunities remain scarce with no notable IPOs or major acquisitions recently. Despite rising global enrollment and projected growth in edtech spending, investment success stories have been rare since 2021. That year saw IPOs of companies like Duolingo, Coursera, and Udemy, but only Duolingo performed well. Notably, India's BYJU’s, once highly valued, now faces significant issues and a steep valuation drop. Other unicorns like Unacademy and Guild also struggle for funding, though Vienna-based GoStudent has achieved profitability. Several startups secured over $20 million in 2024, indicating potential for a rebound driven by advancing AI capabilities and persistent educational challenges, but overall edtech investment levels remain low.

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