Edtech, or educational technology, refers to businesses that use tech to improve education and learning for students and teachers.
Whilst the phrase is a bit of a catchall, it tends to cover any devices, software or systems that help improve school operations or areas of learning. This can be anything from AI markers to VR devices or school management software.
According to Grand View Research, the European EdTech market is expected to reach a revenue of $91,353 million by 2030, with an annual compound growth rate of 12.7% until 2030.
It鈥檚 no surprise then, with so much potential, that VCs are looking to get a piece of the action.
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Are There Any European EdTech Unicorns?
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According to Global Edtech, there are 2 edtech unicorns (privately held companies with a valuation of over $1 billion) in Europe.
These are:
GoStudent
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Based in Vienna, GoStudent is a personalised online tutoring platform that connects 23,000 certified tutors with people looking for extra help.
The platform covers all major school subjects, giving people better access to the support they need. Founded in 2016, the company reached unicorn status in 2021.
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Multiverse
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Named the UK鈥檚 first edtech unicorn in 2022, Multiverse helps people upskill in AI and tech.
The company reached unicorn status after its 2022 Series D funding round, which saw it announce a $1.7bn valuation.
So which VCs are betting on Europe鈥檚 next big companies in Edtech? Let鈥檚 take a look鈥�
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Specialise EdTech Funds in Europe
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Whilst many European VCs will invest in Edtech, there are some that do so exclusively, these are:
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Edu Capital
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Based in Paris, Edu Capital describes itself as 鈥楨urope鈥檚 largest Edtech and Future of work VC fund鈥�.
The fund looks for companies innovating in K12, higher education and lifelong learning, particularly those who are helping to improve learning outcomes and bridge the skills gap.
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Brighteye Ventures
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Brighteve ventures is, according to them, the first and largest vertical EdTech Venture Capital firm in Europe. The VC looks to back founders building the future of learning and work, and has already supported over 50 companies since 2018.
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Sparkmind VC
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Sparkmind VC is the first Nordic Venture Capital company focused specifically on the learning sector.
Whilst their latest investment round has ended, the company is still constantly looking to connect with visionary edtech founders across Europe.
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Emerge Capital
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Emerge Capital looks to back early-stage founders building the future of work and learning.
Based in London and holding a $73M pre-seed fund, they are looking for new ideas and visionary founders to back in the education space. Alongside investment, they also offer hands-on support from 100+ of the world鈥檚 most successful future of work and learning operators 鈥� helping businesses scale fast.
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UFI Ventures
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Focusing specifically on technology for skills and the future of work, UFI Ventures backs founders that are transforming how adults learn and maintain skills for work.
Whilst the focus of the fund is more on adults than kids, they still back companies looking to improve access to learning.
Investing at seed phase, the company helps their portfolio of startups scale fast in key markets.
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VCs With An Interest in EdTech
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HV Capital
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Whilst they do not invest solely in edtech companies, HV capital invests in 鈥榚xceptional founders building market leading digital companies鈥�.
One of their portfolio companies, simpleclub, is an AI-powered edtech app for school and vocational training and learning.
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Lightspeed Venture Partners
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Lightspeed Venture Partners, though headquartered in the US, does have a UK office that exists to expand its European venture offering.
The VC has a huge portfolio that includes edtech companies like Teachmint, and Multiverse. In general, Lightspeed invests in fast-growing innovative companies all over the world from seed to IPO level.
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Fuel Ventures
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Another UK VC looking to back some of the most ambitious tech companies, Fuel Ventures invests across a number of verticals, looking particularly for businesses with strong growth potential.
Fuel has invested in a number of EdTech ventures including Everybody Counts and Bunsen, both of which are setting out to improve learning access.
