Edtech-Specific Startup Funding Stays Low

Funding to startups specifically focused on education technology remains at depressed levels relative to a few years ago. However, the tallies — which exclude general-purpose AI platforms popular with educators, students and investors alike — may understate enthusiasm at the intersection of tech and education.

So far this year, global edtech-focused startups have raised around $2.8 billion in seed- through growth-stage funding, per Crunchbase data. That’s roughly flat with 2024 levels, pointing to stabilizing investment, albeit at a fraction of the peak a few years ago.

In the U.S., this year’s funding numbers are a bit stronger relative to 2024, with $1.2 billion invested in edtech startups so far. While still far off of the pandemic-era highs, 2025’s funding figures puts this year roughly on par with 2023.

What’s in and what’s out

Edtech is a vast space, covering everything from preschool lesson-planning to corporate upskilling. Given this, it’s not uncommon to see a downturn in one subcategory while another remains a funding favorite.

If we were to generalize trends looking at this year’s larger rounds and exits, it appears investors are particularly keen on opportunities in healthcare education and training. At the K-12 level, VCs are also backing startups deploying AI tools to customize lessons for individuals and free up teachers from routine, repetitive tasks.

As for what’s not hot, we’ve seen a movement away from coding academies and teaching platforms, with the rise of coding automation tools. We’re also seeing a paucity of jumbo-sized funding rounds and not a lot of deals that look like pre-IPO financings.

What the biggest rounds tell us

So who is getting funded?

Amboss, a Berlin-based startup offering a tool to learn about and research medical information, raised the largest round, securing nearly $260 million in a March financing. The company started with a focus on medical students but now also markets to practitioners.

Lingokids, a provider of content and online learning activities for young children, secured the next-biggest funding, a $120 million September round led by Bullhound Capital.

Other larger rounds this year include an $80 million financing for EdSights, developer of a chatbot to help students navigate college life and boost retention, and a $45 million Series B for MagicSchool AI, a provider of AI-enabled time-saving and productivity-enhancing tools for educators.

For a slightly broader view, below we put together a list of eight of the larger funding recipients in the education sector this year.

Buyers too

Edtech is also seeing some exit activity. This is coming in the form of M&A, as the IPO market has been quiet this year.

Most recently, CareAcademy, a platform for healthcare workers to learn new skills and obtain certifications, sold to Activated Insights, a software platform for senior living and home care providers, for an undisclosed sum.

Founded in 2013, Cambridge, Massachusetts-based Care Academy previously raised at least $33 million in known venture funding. The company, founded and led by Harvard-trained educator Helen Adeosun, carved out a niche offering upskilling opportunities to health workers like home care aides and nursing home staffers, opening a path to advancement for what are typically lower-paid positions.

Also in the health sphere, OnlineMedEd, an Austin startup focused on online learning tools for medical students and educators, sold this spring to exam prep provider Archer Review, a portfolio company of private equity firm Leeds Equity Partners. Previously, 11-year-old OnlineMedEd had raised at least $30 million in venture funding.

And in the post-secondary education space, Modern Campus, a Toronto-based provider of software tools for colleges to attract and retain students, sold a majority stake to PE firm Providence Equity Partners in August.

The optimist case

Looking ahead, the optimist case is that founders, investors and acquirers alike will find plenty of appealing opportunities in ed tech.

Longtime education startup investor Owl Ventures considers the education and training market to be one of the fastest-growing sectors in the global economy. In its 2025 report, the firm projects the global education market is on track to surpass $10 trillion by 2030.

In terms of growth, Owl unsurprisingly points to AI as the largest ed tech driver. In recent years, the report notes, AI in the classroom has moved beyond the experimentation stage and is already proving vital in saving educators hours of work, providing personalized tutoring to students, and helping craft compelling lesson plans.

Eventually, it’s likely we’ll see the impact of AI innovation in edtech also showing in the form of more funding for startups in the space.