Edtech, like the wider VC market, had a relatively tepid first half of the year. But the good news is that many companies continued to close deals and further their development. Indeed, according to Pitchbook data, there were 402 deals done in global Edtech in H1 2024 totalling ~$1.5B in investment. In Europe, 118 deals were done, totalling ~$400M.
We reviewed the Edtech deals done globally in H1 2024 and pulled out some of the emerging themes (based on number of relevant deals and funding amounts), as well as highlighting specific companies that secured funding under each theme.
Like other industries impacted by oncoming waves of innovation, the Edtech market is evolving, with broadening understanding of the sector and the many intersections with comparable sectors. Brighteye has long advocated the broad relevance of learning and training beyond conventional areas of education, like schools and universities. For example, we have invested in companies at the intersection of learning and fintech, healthtech, HRtech, climate and mobility.
Some of these intersections are drawn out in the following themes.
So, what got funded in H1 2024?
1. Companies focused on AI and ML solutions continue to gain investor interest
You won’t be surprised to see an early mention of AI and ML! As we’ve commented in previous articles, AI has long been a fixture in many education solutions, but not often in the practical, understandable and visible ways that Generative AI has demonstrated over the past 12-18 months. For example, article recommendations systems have long been a fixture in learning platforms, but naturally these systems have become more sophisticated as subsequent iterations have been developed, culminating in highly valued market and research intelligence platforms like Alphasense and Primer. This said, we are excited to see new companies both receiving funding and starting out focused on AI/ML’s many dynamic applications. Indeed, watch this space for further publications focused on this theme in the coming weeks…!
Turning to AI and ML trends in H1 2024:
a. Adaptive Learning Platforms:
Adaptive learning platforms continue to evolve, using AI to personalise the learning experience, adapting content and pacing based on individual learner performance. The most common, well-understood solution in this space is AI-driven support systems for educators, workplace leaders and individual learners that provide customised feedback and study plans based on learners’ interactions with the platform. Intelligent Tutoring/ Learner Systems use machine learning to understand learner weaknesses and strengths, providing targeted interventions and resources that are adjusted based on the learner’s abilities and performance in previous learning activities. We are clearly seeing a growing interest in these platforms for all age groups, not just K12, including solutions for the workplace within a diverse range of industries with great variation in role functionalities.
b. Co-pilots:
Co-pilot solutions have significantly evolved, integrating AI to enhance productivity and provide ongoing, flexible support to learners and professionals across many sectors. In K-12, AI co-pilots assist teachers with lesson planning and personalised student feedback, facilitating more tailored learning experiences. In industry, co-pilots optimise production processes and predictive maintenance, reducing downtime and operational costs. Professional services leverage AI to automate routine tasks, improving efficiency and accuracy in areas like accounting, legal research, and customer service. Additionally, in healthcare, AI co-pilots aid in diagnostics and treatment planning, enhancing patient outcomes. These advancements demonstrate AI's expanding role in augmenting human capabilities across diverse fields.
c. Research tools:
Research tools have evolved to provide advanced market intelligence and data analytics, empowering users to better understand and synthesis insights, in order to make improved decisions. In academic studies, these tools facilitate comprehensive literature reviews, data collection, and analysis, enhancing research quality and outcomes. In industry, market intelligence tools analyse trends, consumer behaviour, and competitive landscapes, guiding strategic business decisions. These tools also support evidence-based practices in fields like healthcare, finance, and public policy, ensuring decisions are grounded in robust data. The development of sophisticated research tools has significantly improved the ability to understand, utilise, and interpret data, driving better decision-making across various sectors.
2. Healthtech x Edtech space continues to accelerate
The Edtech X Healthtech connection is only deepening, with closer and closer connections between patients, professionals and leading-edge practice and treatment protocols. Companies like Overjet utilise AI to provide advanced educational tools and diagnostics in the healthcare sector. This integration assists in professional training and ensures better patient care through accurate diagnostics. Other intersections between Healthtech and Edtech include evolving social and community health education – platforms highlight the importance of community support and networking in order to achieve better treatment and broader health outcomes. They utilise educational resources and networks to improve outcomes by fostering shared learning. Medical professionals have some of the highest expectations attached to professional and continuous medical training. Elemeno Health and others are focused on providing leading edge training, focused on new or evolving practices.
Turning to healthtech x edtech trends in H1 2024:
a. Health Monitoring and Orchestration Systems:
Platforms that use AI to monitor patient health and provide education on managing health conditions. These platforms typically serve either medical professionals or individual patients themselves. These platforms help users to better understand how they are feeling, how they should take care of their bodies, what interventions they should consider and then act upon and how they should look to seek specialist help. Monitoring systems can often also be gamified, in some of the ways set out above. Uphill (a Brighteye portfolio company) focuses on serving medical professionals, orchestrating personalised patient pathways for improved care quality.
b. Patient Education Tools: Applications and platforms that educate patients about their conditions, treatments, and wellness practices. There is improving access to medical knowledge, putting more control in the hands of individual patients to learn about their conditions, trial differing remedies and take steps to learn about the conditions of their loved ones, such as their children
3. SaaS/ Cloud-Based Solutions for admin and collaboration continue to innovate
The integration of cloud-based Educational Management Systems (EMS), advanced Collaboration Tools, and efficient Content Delivery Networks (CDN) is greatly enhancing the management, delivery and data aspects of education. EMS platforms streamline administrative tasks and personalise learning through integration, automation, and analytics. Collaboration Tools enhance real-time communication, collaborative learning, and engagement with interactive features. CDNs ensure scalable and high-performance content delivery, leveraging adaptive streaming and personalisation to provide smooth, accessible learning experiences. These technologies collectively improve efficiency, reduce costs, and enhance educational outcomes, making education more accessible, personalised, and engaging for students and educators alike.
Turning to trends in H1 2024 for solutions in admin and collaboration:
a. Educational Management Systems: Cloud-based platforms that manage school and workplace administrative tasks, student information systems, and learning management systems (LMS) continue to perform well and innovate, often expanding their product suite either via micro-acquisitions or productisation of new, demanded elements.
*Sdui is a Brighteye portfolio company
b. Collaboration Tools: SaaS products that facilitate collaboration among learners and educators/ mentors, such as virtual classrooms or studyrooms, discussion forums, and project management tools remain a much discussed topic in Edtech. Cohorts, both digital and real, and communities remain a key component of a learning platform’s value.
4. Skill Development and Training companies tackle increasingly diverse industries
Skill development and training platforms continue to evolve and receive funding from investors as the quest for just-in-time learning, enhancement of capabilities for career advancement and closer connections between training and opportunities intensifies. Companies that received funding were working across the gambit, on technical skills, soft skills and vocational training. are focusing on providing comprehensive solutions for technical skills, soft skills, and vocational training. Technical skills platforms typically offer courses and certifications, featuring interactive and project-based learning- companies addressing technical skills are both increasingly focused on sub-sectors of the market as well as on new, more efficient learning techniques, focused on closer relationships between the training and the end use. Soft skills development tools use simulations and scenario-based learning to teach content and adjust learner traits and behaviours using data. Vocational training platforms employ a range of techniques to enhance learning, such as VR/AR for practical, hands-on practice in trades and professions.
Turning to trends in skills development and training companies in H1 2024:
a. Technical Skills Training and vocational training:
Platforms offering courses and certifications in various technical fields, such as cybersecurity, telecoms engineering, software development, data science, and cloud computing, are rising in prominence. These platforms provide training that often features interactive learning environments and project-based learning. There is also a notable shift toward simulation-based learning techniques. As technology continues to evolve, the demand for skills-based training expands, driving the need for simulation-based training in areas like network security, virtual labs for software testing, cloud infrastructure management, and telecom systems.
*Sdui is a Brighteye portfolio company
b. Bite-Sized Learning and modular course design:
Solutions offering micro-learning modules that can be consumed quickly and easily are on the rise. This approach caters to the modern learner’s preference for short, focused learning sessions. Modular course platforms allow learners to pick and choose modules to build a customised learning path are gaining popularity, particularly in professional development and lifelong learning contexts.
Summary
Throughout this blog, we’ve focused on some of the key themes emerging in H1 2024 Edtech activity. Edtech sector deals in H1 have been characterised by a strong emphasis on AI and machine learning, health education, Saas/cloud-based solutions for collaboration and administration, skill development within specific industries, and financial education.
Deal activity is reflecting a dynamic landscape where companies are able to leverage technology to personalise and enhance educational experiences, address specific industry needs, and equip users with essential skills for the future, across a diversifying range of industries.
We look forward to following the sector’s progress in H2 and to meeting the many founding teams at the forefront of these exciting spaces and others that emerge!
Sources:
Pitchbook data – we conducted a search and then analysed key words
Khoshnoodifar et al (2023); Effectiveness of Gamification in Enhancing Learning and Attitutes: A Study of Statistics Education for Health School Students, US National Library of Medicine
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