INDUSTRY SPOTLIGHT

EdTech

Delve into a flourishing edtech market space to unleash the untapped opportunities and overcome all the possible obstacles amid ambitious and agile contenders.

Rewriting the future of learning today

The growing appetite for personalized and flexible learning, the widespread embrace of digital platforms, and the rapid emergence of new skills have led to the edtech market booming. With the covid-19 facilitated and the technological advancements cemented industry expansion, the edtech segment has become a fertile ground with endless unharvested chances for startups and investors. But…

Plowing through opportunities is getting much harder

While the edtech industry is flourishing, competition is heightening. Both the top players, such as Microsoft Corporation, Dell Technologies, Oracle Corporation, and Apple, and the new entrants are flooding the market, each eager to carve out a bigger slice of the cake. And like this…

Funding barriers are emerging as a natural consequence. After a record-breaking $20.8B catch in 2021, the coffers of investors are beginning to shrink. Venture capitalists are now more picky, targeting products with high revenues to capitalize on.

You need more than just a cutting-edge concept

At Waveup, we’ve mastered the art of transforming innovative ideas into prosperous and profitable companies. With over $3B in funding secured, 500+ captivating pitch decks crafted, and the growth of 100+ startups under our belt, we know all the ropes of this playground. Let’s hit the road and check the edtech market research.

3x growth
The edtech market is estimated to grow triple by 2030.

 

80%
Of sales in the global education market comes from edtech sector.

 

9/10
Teachers report using technology-based approaches in the lessons.

Driven by digitalization of education, global accessibility, and personalized learning
190+

Countries (even low-income nations) have already adopted edtech innovations.

>400%

EdTech platforms witnessed a fourfold rise in course enrollment in 2020.

6/10

Of Fortune 500 companies utilize online learning platforms.

VENTURE LANDSCAPE

In 2022, the edtech segment secured $10.6B in funding, marking a 49% drop from the substantial $20.8B in 2021

 
Key verticals funds infusions go to:

  • Online Learning Platforms
  • Learning Management Systems (LMS)
  • Adaptive Learning Technologies
  • Corporate Training Solutions
  • STEM Education Tools

Leading edtech venture capital firms

Write to us to know more

WAVEUP VIEW

Roadblocks faced by edtech newcomers

Fevered race to fortune

With entrepreneurs, startups, and investors flocking to the edtech landscape, its rapid expansion resembles the gold rush. In the USA alone, the recent number of edtech startups hits 8K. Newcomers must be agile and creative to find their valuable nugget of innovation that might revolutionize learning, outwit competition, and bring untold riches.

Quest for capital

The recent 49% drop in venture investments shows that VCs are now on the hunt for more than just an average learning management tool. They want the product to be, first, a market fit and, second, scalable. So if you don’t want to end up restructured and downsized, like AltSchool with its high operating costs and inability to scale, be sure to prepare strategic planning, clear value demonstration, and regulatory navigation to attract edtech funding.

Running through a legal maze

Despite the 90% use of edtech solutions within classrooms, startups are still experiencing hurdles with their product adoption and integration. Compliance with numerous national and international regulatory protocols requires a complete understanding of the education landscape and additional fundraising, with the last being challenging due to intense rivalry.

How we can help

Startups
Fundraising advisory

From diligent industry analysis to storytelling and financial forecasts, we’re helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity framed in a winning EdTech pitch deck.

Investors
Due diligence and portfolio support

Evaluating potential investments, conducting due diligence, and supporting portfolio companies on their new fundraising rounds.

Established companies
Growth hacking

Discovering market opportunities in the market and developing execution strategies to build actionable and scalable blueprints for growth.

WHO WE ARE

Unlocking your next stage of growth

Waveup is a leading global advisory empowering companies to fuel growth, attract investments, and secure strategic partnerships.

We turn data into business insights that drive results, helping companies excel in the competitive B2C and B2B spaces across 50+ verticals, discovering and catalizing opportunities for growth.

Our investment consulting services for EdTech startups

Market intelligence

Fundraising support

Pitch decks

Financial models

Investor research

Growth consulting

Go-to-market strategies

Marketing/sales materials

Design support

Learn more

FAQ

What makes the industry appealing for edtech financing opportunities?

Due to the large and fast-growing market (market value—$123.40 billion in 2022), high margins, and positive social influence, the edtech market is highly attractive for investors. And the huge number of startups, more than 19K globally, supports this claim.

What is the current size of the edtech market, and its potential for future edtech startups?

Currently, the edtech market comprises about $140 billion, expanding annually at a rate of 13.6%. Fueled by an increasing demand for personalized and flexible learning along with the growing adoption of online education, the edtech landscape opens numerous opportunities for startups within such directions as corporate training, adaptive learning technologies, learning management systems, etc.

How challenging is it to secure edtech startup funding nowadays?

Getting investments in the edtech arena is influenced by multiple aspects, including market demand, uniqueness in innovation, compliance with education regulations, and the potential of the business model to grow. Yet, with a strategically designed edtech pitch deck and a solid plan for entering the market, this journey will become smoother.

How long does it take to create an edtech pitch deck and a financial model for an edtech startup?

In most cases, we finish the materials in two to three weeks, maximum a month. But it all depends on the number of tasks we tackle at the moment and the complexity of the project itself.

What are the key mistakes edtech startups make in their pitch decks?

Poor investment narration is the most striking mistake we’ve encountered in edtech pitch decks. The second place goes to the absence of a clear vision and go-to-market strategy and comprehension of the chosen marketplace. And technical jargon burden, along with lack of meaningful market traction, end the list.

What are the main challenges edtech startups face, and how are they tackling them?

Despite a 49% drop in edtech funding, the field is extremely appealing for startups, with the number reaching 8K already. It all leads to an intense rivalry. Plus, adherence to multiple legal standards aggravates the situation, making it challenging for the founders to secure fundraising. Comprehensive strategic planning, a clear value proposition, compliance with all education protocols, and cutting-edge technology ensure companies overcome all the obstacles.

How competitive is the edtech market?

The edtech industry has already welcomed more than 8K startups, with the number growing daily. Driven by technological advancements and a global shift towards digital learning, especially post-COVID-19, the demand for innovative educational solutions has surged. As a result, companies continually need to innovate and adapt to stay relevant and capture their target audience.

What services do you provide for investors who are either considering or have already invested in edtech startups?

We guide investment funds through detailed due diligence for potential edtech initiatives, helping evaluate their investment merit. Additionally, we provide complete fundraising assistance to the companies within our partner fund’s portfolio.

Do you provide edtech M&A support?

Absolutely! We offer assistance in pinpointing edtech M&A opportunities, creating CIMs, and performing modeling for both buy-side and sell-side deals.

Do you make intros to edtech venture capital firms?

Yes, we do. If your project fits in terms of round size, team, and product, we can connect you with edtech VCs. This is part of our wider investor relations package, which lines up potential investors, prepares founders for initial meetings, and helps keep the conversation going post-deal.

Do you provide comprehensive edtech market research on request?

Definitely! Our experts deliver tailored insights on the market, covering industry reports, competitive analysis, and edtech market research to position you ahead. Using our trusted proprietary data sources, we aim to give you a comprehensive view of the edtech ecosystem, highlighting aspects such as market scale, variety, and competitive dynamics.

Which edtech startup funding stages do you assist with?

We excel at managing edtech projects from Seed to Series B developmental stages. Additionally, we assist businesses in the pre-seed and Series C+ phases and actively cooperate with established entities and investment funds.

Working on your endeavor in the EdTech? We're all ears

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