The ed tech venture capital funding slump continues with just $410 million in investment during the first quarter of 2025. That compares to $580 million in Q1 2024.
The tightening in ed tech investments led to fewer companies receiving larger chunks of money, according to HolonIQ. The average check size? $7.8 million.
Nearly half of venture funding raised went to three companies: LeapScholar, a study abroad planning service; MagicSchool, an artificial intelligence teacher assistant; and Campus, a virtual postsecondary program offering courses taught by professors from top-ranked colleges.
This, the HolonIQ report said, points to a narrower focus on access, automation and alternative education models in the market.
Globally, $85.6 billion in venture funds have been pumped into ed tech since 2010. The global market soared to a whopping $16 billion in 2020 and $20.8 billion in 2021, during the height of the COVID-19 pandemic. However, in 2024, the market hit its lowest point in a decade as venture funding reached just $2.4 billion — down 88% from 2021’s all-time high.
In the U.S. specifically, the HolonIQ analysis found Q1 2025 ed tech venture funding dropped 50% to $150 million from Q1 2024’s $300 million — far from the $1 billion total for 2014 and the peak of $8.3 billion in 2021.
