Edtech
Online learning boomed during the pandemic. Is there any turning back now?
Last updated: 31 Mar 2022
Market 101
The edtech mission is clear: future-proof a looming €5bn skills shortage and revamp one of our most vital public services. The opportunity — suddenly buoyant — has been slow coming. In the early days, edtechs mostly concerned themselves with the less-than-transformative work of selling to customers with long sales cycles. They were hampered initially by wildly different national requirements and limited interest in digitalisation. Investors weren’t exactly tempted, either. Then Covid-19 hit and changed the equation entirely.
Schools and universities embraced edtech out of necessity — but as choice in the market grows, they’ve maintained their interest, even becoming picky. At the same time, the rise of hybrid learning has created opportunities for startups far beyond the confines of the classroom. Maybe, just maybe, this will allow edtech to return to its lofty ambition of not just incrementally improving but wholly reimagining learning.
Early stage market map
Key facts
159%
YoY increase in European edtech VC investment in 20211
3%
proportion of global education expenditure on digital education2
85%
estimated percentage of current primary school students that will work in jobs that do not exist today by 20303
Trends to watch
1. The missing ingredient
→ The demand for online education is evergreen, but student motivation is a sticking point for lasting engagement.
→ As a remedy, startups are now adding in-built social layers to online learning, from fostering communities on their platforms to facilitating live learning.
2. Cutting out the universities
→ Edtech startups increasingly aim to acquire students directly rather than via educational institutions or the B2B market.
→ This may make for a speedier process than selling to schools or universities, and arguably leaves more room for experimentation with alternative learning formats.
3. Rethinking further education
→ The three-year university degree may no longer be able to accommodate reskilling and lifelong learning needs in the face of technological change.
→ Add to that the rising costs of tuition, and mix in the pragmatism of digitally native Gen Z, and it’s easy to see why alternative online solutions and income-sharing agreements are gaining momentum.
4. The future of hybrid learning
→ With students back in classrooms, teachers will likely cast aside the niceto-haves and stick with tried and tested tools that make a real difference to their work.
→ Things look rosier for supplemental education, which can easily integrate so-called edutainment — tools designed to make learning playful — and score points for convenience by taking place remotely.
Startups tracked by Sifted
Sifted take
After the pandemic windfall comes the real test. The first generation of edtech was primarily about bringing offline processes online, from tutoring lessons to lectures. The key to edtech’s lasting impact is to look beyond simply digitising existing resources and instead bring to life new fundamental ideas about what learning should look like, and how to tailor it to specific needs and groups.
Rising stars
Backed by the likes of Y Combinator, Dunce Capital and Brighteye Ventures, Studystream developed a real-time streaming platform for student collaboration. Its growing user base counts 3.6m students from 180+ countries.
Round
Pre-seed
Date
2021
Size
€1.9m
Developed a gamified learning platform for children and young students focusing on a wide range of areas, from maths and science to sign language and photography. It is backed by Bpifrance, Raise Ventures and Educapital, amongst several angels.
Round
Seed
Valuation
€30m
Date
2021
Size
€7m
An Entrepreneur First startup, it offers an AI-powered language learning and critical thinking platform for children. It is backed by LocalGlobe, North Summit Capital and ADV, and is deploying funds to expand in Europe.
Round
Seed
Valuation
€21.5m
Date
2020
Size
€3.5m
Early stage startups to watch
99math
Gaming,Education
€1.4m
€910k
-
Algor Lab Srl
Digital content platform
€250k
€180k
€1.1m
Aline
Digital content platform
€200k
€100k
-
ALPA Kids
Digital content platform
€270k
€220k
-
bina
Next gen. school/ university
€1.3m
€1.3m
-
buya
Live Video Platform & Tutoring
€1.8m
€1.8m
-
Chatterbox
Language Learning
€3m
€1.8m
-
dgree
Digital content platform
€100k
€100k
-
Doctrio
Digital content platform
€3m
€3m
€15m
edyoucated
Skilling & job-related solutions
€2.5m
€2.1m
-
Emile Education
Gamified learning
€750k
€450k
€1.5m
Framework
Next gen. school/ university
€1.8m
€1.5m
€7.5m
GoodCourse
Digital content platform
€700k
€700k
€3.5m
Guide Education
Digital content platform
€8.5m
€7.5m
€37.5m
Hello Mentor
€125k
€125k
-
Heylama
€100k
€100k
€1m
ImagiLabs
Gamified learning
€750k
€350k
€3.8m
Justlearn
Live Video Platform & Tutoring
€108k
€108k
€1.1m
Kaizen Languages
Language Learning
€1.7m
€1.2m
€5m
Kide Science
Digital content platform
€2.9m
€1.5m
€7m
KIMO
Digital content platform
€4.3m
€3m
€23m
Lingumi
Live Video Platform & Tutoring
€6.4m
€3.5m
€21.5m
Magikbee
Digital content platform
€350k
€200k
€3m
Memby
Education
€910k
€910k
-
Moomin Language Academy
Language Learning
€1.4m
€700k
€3.5m
Mr. Chadd
Live Video Platform & Tutoring
€2m
€920k
€4.6m
One Third Stories
Digital content platform
€700k
€370k
€3.1m
Pam Learning
Study tools / Exam preparation
€425k
€242k
€1.7m
PowerZ
Gamified learning
€10m
€7m
€30m
Sainaptic Limited
Digital content platform
€598k
€598k
-
Save All
Study tools / Exam preparation
€600k
€600k
€3m
simpleclub
Digital content platform
€3.3m
€1.3m
-
Skiller Whale
Skilling & job-related solutions
€3.3m
€2.5m
€13.3m
Sophia Technologies Ltd
Digital content platform
€672k
€672k
€370k
StudyStream
Live Video Platform & Tutoring
€1.9m
€1.9m
-
Synap
Study tools / Exam preparation
€510k
€600k
€3m
Tomorrow’s Education
Next gen. school/ university
€4.5m
€3.4m
-
Vignita
Skilling & job-related solutions
€115.5m
€660k
-
Winc Academy
Skilling & job-related solutions
€3m
€2.7m
-
Wyblo
Skilling & job-related solutions
€270k
€270k
€2.8m
Zero Gravity
Skilling & job-related solutions
€4.7m
€4.1m
-
Europe’s success stories
Who early stage startups are up against
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ Connects apprentices with one of its 300 clients, primarily in the tech sector
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ One-to-one online tutoring platform that expanded to 16 countries in 2021
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ Both a direct-to-student and B2B platform with a focus on gamification that allows users to build their own educational games and reuse those available on the site
Sources
Research reports
2022 Global Education Outlook | February 2022 | HolonIQ
The European Edtech Funding Report 2022 | January 2022 | Brighteye Ventures
News Articles
GoStudent raises €300m as European edtech continues strong trajectory | January 2022 | Sifted
Edtech startups to watch, according to top investors | December 2021 | Sifted
Unbundling College: Technology Is (Finally) Reinventing Education | September 2021 | Digital Native
European edtech — no longer last in class? | June 2021 | Sifted
How edtech is paving the way for personalised learning | April 2021 | Independent Education Today
13 investors say lifelong learning is taking edtech mainstream | January 2021 | TechCrunch
1 The Edtech opportunity | January 2021 | Dealroom
8 edtech investors talk reskilling, digital universities, ISAs and other post-pandemic trends | July 2020 | TechCrunch
2 Why Europe is so far from its first edtech unicorn | February 2020 | Sifted
3 Closing the future-skills gap | January 2019 | McKinsey
Your feedback
How would you rate this briefing?