These are challenging times. Public markets are creaking and only niche sectors are unaffected or in a marginally positive position. Edtech is just like every other technology.
The Half Year European Edtech Funding report is based on Dealroom's data. Investment activity in Europe is the focus of the report, but it's also relevant to what's happening in other markets.
In the first half of the year, global VC funding into edtech startups totaled $6.5 billion, compared to $20.1 billion raised in the year before. There were fewer edtech mega-rounds in the first half of the year compared to previous periods.
In the first half of the year, there were 16 mega-rounds, compared to 24 in the second half and 30 in the first half. Since a peak in H1 2018, the number of early-stage rounds has fallen.
We expect the European edtech market to maintain some positive signs of resilience, but naturally, the ecosystem cannot be immune to the headwinds it faces.
More early deals are being done by angels and via involvement with incubators, which are not comprehensively covered in the data.
At least for the time being, the European edtech ecosystem has maintained most of its strength. The fact that the sector has secured over a billion dollars in less than two years shows its resilience.
The inverse correlation between worsening employment markets and appetite for education is unsurprising.
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