Technology

Despite creaky markets, European edtech is showing its resilience – TechCrunch

These are turbulent times. Given the circumstances, it is hardly surprising that public markets are creaking and only niche sectors remain either untouched or in a marginally positive position. Edtech is no exception.

Brighteye Ventures today released its semi-annual report on European edtech funding, based on data from Dealroom. The report primarily focuses on investing activity in Europe but is contextualized with what we are seeing in other markets.

Global VC funding for edtech startups totaled $6.5 billion in the first half of 2022, compared to a total of $20.1 billion in 2021. This decline in global funding is partially explained by less edtech -megar rounds (over $100 million) in the first half of 2022 compared to previous periods.

In the first half of 2022, there were 16 so-called mega rounds, compared to 24 in the second half of 2021 and 30 in the first half of 2021. At the same time, the number of early-stage rounds recorded as deals under 15 increased US dollars have been categorized into millions, has declined fairly consistently since a peak in the first half of 2018.

We expect the European edtech market to retain some positive signs of resilience, but of course the ecosystem cannot be immune to the headwinds it is facing.

Note that this does not necessarily reflect lower activity in the ecosystem – it simply means that previous deals are made by Angels and through involvement in incubators and accelerators that are not fully covered in the data.

We’re pleased to note that the European edtech ecosystem has managed to maintain most of its momentum, at least for now. The fact that the sector has secured $1.4 billion so far in 2022, up 40% from a year earlier, shows its resilience to sustain growth even in difficult conditions.

This is not surprising given the inverse correlation between deteriorating macro labor markets and appetite for education, particularly in the post-18 education market.

https://techcrunch.com/2022/07/15/despite-creaky-markets-european-edtech-is-showing-its-resilience/ Despite creaky markets, European edtech is showing its resilience – TechCrunch

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