The pace of venture capital funding for education technology (edtech) startups has slowed down significantly in the first quarter of 2023, with a drop of more than 50% YoY. This is in line with the larger VC funding slowdown trend, except for AI deals that are performing quite well. COVID-19 accelerated the adoption of edtech in the K-12 schools and universities, with Andressen Horowitz and others raising massive funds, leading to record-breaking rounds for startups. Furthermore, several edtech startups have incorporated AI into their product offerings, leading to promising investment opportunities for pre-seed and seed-stage edtech startups. While funding has pulled back for edtech startups, it is not all doom and gloom as edtech venture firms like Reach Capital have raised $215 million funds to support early-stage education technology startups.
Reach Capital is an investment firm that supports early-stage education technology startups.
Katelyn Donnelly is a venture capitalist working at Avalanche VC, primarily focusing on pre-seed and seed-stage edtech startups.
