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Home»Higher Education»Ed tech venture funding market continued to tighten in Q1
Higher Education

Ed tech venture funding market continued to tighten in Q1

adminBy adminMay 28, 2025No Comments2 Mins Read5 Views
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The ed tech venture capital funding slump continues with just $410 million in investment during the first quarter of 2025. That compares to $580 million in Q1 2024.

The tightening in ed tech investments led to fewer companies receiving larger chunks of money, according to HolonIQ, a market research firm. The average check size? $7.8 million.

Nearly half of venture funding raised went to three companies: LeapScholar, a study abroad planning service; MagicSchool, an artificial intelligence teacher assistant; and Campus, a virtual postsecondary program offering courses taught by professors from top-ranked colleges.

This, the HolonIQ report said, points to a narrower focus on access, automation and alternative education models in the market.

Globally, $85.6 billion in venture funds have been pumped into ed tech since 2010. The global market soared to a whopping $16 billion in 2020 and $20.8 billion in 2021, during the height of the COVID-19 pandemic. However, in 2024, the market hit its lowest point in a decade as venture funding reached just $2.4 billion — down 88% from 2021’s all-time high.

In the U.S. specifically, the HolonIQ analysis found Q1 2025 ed tech venture funding dropped 50% to $150 million from Q1 2024’s $300 million — far from the $1 billion total for 2014 and the peak of $8.3 billion in 2021.



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