Why are Edtech Startups on the Rise in Europe?

By Education Technology Insights | Wednesday, July 29, 2020

Education being rife for the digital transformation, it is fair to say that Europe is lagging in the sector in terms of innovation and success.

FREMONT, CA: With more than 20 million students present in European tertiary education alone, and wide-ranging questions around its quality and the resulting skill gaps, the impact of disruption can be life-changing. Therefore a rise in the investment of early-stage companies has been noticed that leverages technology to help the people learn in Europe. The education sector has seen a massive boom in the past five years as the education sector has adopted technology quickly. Yet, a significant amount of investment has been in the United States and China.

It is believed that there is a big edtech opportunity in Europe. It is essential to examine the growth in investment in the European edtech sector over the last few years.

Top 10 EdTech Startups - 2019• Between 2014 and 2017, annual investment in edtech startups in Europe has grown with more than thrice. Although the number of transactions per year has remained roughly the same over this period meaning the average transaction size has also tripled as the investors have started to invest a meaningful amount. Thus, the trajectory is clear that the investors are now willing to invest in European edtech.

• There is a significant growth in edtech funding has been seen. This is in stark contrast to more mature venture sectors where the bulk of funding is in later-stage investments. While talking about the coming wave in edtech funding, part of that will be the larger rounds by successful companies currently.

• The European edtech market has been helped by the presence of an increasing number of edtech hubs in many places and edtech accelerators, VCs, governments, and other vital players reshaping the edtech sector through disruptive educational solutions. These include the launches of specialized edtech testing programs at universities, events, new educational policies, among other initiatives. For example, edtech accelerators are mushrooming throughout Europe, reinforcing the ecosystem and propelling the creation of young edtech companies.

See Also: Top Education Technology Solution Companies

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