Investments and the future of EdTech

Photo by Frank Busch on Unsplash

The EdTech investment is on the frontline among industries that are growing. This is despite the economic strains brought about the pandemic on the global stage. A Forbes report in 2018 indicates that the industry hit a historical investment figure of $9.5 billion across every market. A clear indication that the industry’s rise did not begin just recently. The rise of the industry is also a pointer to the direction that our future education systems might be heading. Read on to find more on which countries are at the forefront of this drive and what lies ahead for the EdTech investments after the pandemic.

Countries and Their Investments in the EdTech Industry

The United States is home to about 43% of the world’s EdTech companies in the world. Many factors contribute to the presence of these companies in the US. A booming economy and the presence of innovation hubs such as Silicon Valley are just a tip of the factors that make the US such an attractive market. However, the large presence of these firms does not automatically mean that the US is the world’s top investor in EdTech companies.

Sweden leads the way in terms of providing venture capital to EdTech companies. China follows closely while Italy closes the top three spots. Sweden has been hosting annual events to boost its EdTech industry. Take for instance the EdTech Sweden. This event brings together experts to network and share ideas on the best approaches to providing digital solutions. The event serves also as an exhibition forum for innovations.

China leads as the country providing the highest average venture capital for its EdTech companies. China collectively invested $3.5 billion as venture capital for EdTech companies in the first quarter of 2019 alone. Luxembourg, on the other hand, gives about $35.4 million to its firms. India and Canada come in third and fourth respectively with their funding just crossing the $20 million mark slightly.

According to HolonIQ during this decade 42 education companies have raised 58 $100m+ Venture Capitals rounds: “the 42 companies that have raised the 58 Mega Rounds have secured nearly $16B of funding from investors”. Also “as of 2 July 2020, there are 19 EdTech Unicorns around the world who have collectively raised over $9 billion of total funding in the last decade”.

Innovations Benefiting from EdTech Investment

The surge in EdTech investments has a positive ripple effect on other industries, especially the IT-related industries. These industries are key facilitators of the EdTech Investments and are responsible for providing the necessary hardware and software that powers the EdTech innovations.

Below are some innovations that can benefit from an EdTech investment:


Advancements in the Artificial Intelligence sector is enabling us to come up with robots. With proper coding, these robots can do just about anything. For the EdTech industry, robots could slowly become a familiar classroom face. China is already exploring the use of robotic assistance in the classroom. Other countries might follow suit. Robots can be effective in handling administrative tasks such as providing reception services.

Virtual Classrooms

Virtual classrooms are slowly becoming the norm. The advantage of the classroom is that anyone can attend it. It, therefore, makes it easier for most governments to provide basic education to their populace regardless of their location. Schools might also shift some of their courses to online platforms in the future because of the benefits they are enjoying from using the platforms now. For instance, cost reduction in administrative expenses.

Blockchain Technology

Many will associate this technology with cryptocurrencies. But it has its application in the EdTech industries. The technology helps to track and verify students on online platforms. It also helps with testing the students. In essence, blockchain technology helps the tutor to perform the supervisory role remotely.

Expectations for EdTech After the Boom from COVID-19 Crisis

EdTech has a bright future. It was gaining momentum long before the pandemic. The pandemic only accelerated its growth because people had little option other than turning to EdTech innovations to get their education. Furthermore, countries are increasing their funding for this industry. A clear indication that they have faith in it. However, the rise of the EdTech investment may end up widening the quality of the education gap among countries. Wealthy nations will advance their system because they have the leverage to accessing superior technology easily. Poor nations might not enjoy the same privileges.

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