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EdTech startups are on the rise all over the world with the US leading the way with 43% of the world’s EdTech enterprises’ headquarters located there. The country’s population size, large economy, and tech and innovation hubs, such as Silicon Valley, are likely to contribute to its success.

Just under one third (31%) of EdTech companies have successfully attracted venture capital funding with 1,019 enterprises in the industry attracting a total of $14 billion.

RS Components has analysed Crunchbase data on EdTech companies to reveal who is investing in EdTech the most. The report looks at the countries that are home to the most EdTech companies, as well as those that have raised the highest capital, are receiving the most funding and have made the most acquisitions.

  • Sweden tops the list for EdTech company funding with 57% of companies successfully securing venture capital, followed by China at 55% and Italy at 50%.
  • The UK comes in at 13th place for funding success with only 33% of EdTech companies securing capital.
  • EdTech acquisitions are on the rise with almost 200 acquisitions in the EdTech space since 2003.
  • The most notable acquisition in the space was LinkedIn’s $1.5 billion purchase of Lynda in 2015.
  • Indian owned EdTech start-up company BYJU is leading the way with the highest amount of capital raised at $969 million.
  • EdTech acquisitions are on the rise with almost 200 acquisitions in the EdTech space since 2003.

Which countries are leading the way in EdTech enterprises?

With a predicted market value set to reach $252 billion in 2020, EdTech startups are on the rise all over the world. At the heart of this surge is the US, with an overwhelming majority of 43% of the world’s EdTech enterprises having their headquarters located in the United States. The country’s population size, large economy, and tech and innovation hubs, such as Silicon Valley, are likely to contribute to its success.

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India has the second-highest number of EdTech startups, with 10% being located in the country. Brazil (9%), the UK (8%), and China (3%) all make it into the top 5 countries leading the way in EdTech.

The countries home to the highest number of EdTech company headquarters:

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Which countries are top for venture capital (VC) funding in EdTech?

When it comes to the success rates of the world’s EdTech companies in securing funding, it’s countries like Sweden, China and Italy that come to the fore, with over half of their EdTech startups successfully securing funding.

Sweden leads the way, with 57% of its EdTech startups being successfully funded, and with organisations like Swedish EdTech Industry claiming that: “Sweden will become the leading country in the world in exploiting the opportunities and effects of digitalisation in the education system” it’s clear that there is significant confidence in the industry.

Sweden is also home to key initiatives in the EdTech field, such as EdTech Sweden – an annual event, hosted in Stockholm, that is a combination of a conference, exhibition and a networking event where experts in the field share and discuss best practices and new digital solutions that promote learning.

The countries where the highest proportion of EdTech companies are securing funding:

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Which EdTech companies are leading the way?

India is home to the EdTech startup, BYJU’s, which has raised the highest amount of capital, at $969 million. Following shortly behind are China’s Yuanfudao at $544m and Zhangmen at $499m.

Seven of the highest funded companies are based in the US, with the likes of Coursera, Laureate Education and 2U Inc. attracting a total of $313.1 million, $400 million and $426.8 million, respectively.

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Have EdTech acquisitions increased?

According to Crunchbase, there have been almost 200 acquisitions in the EdTech space since 2003. While few were made between 2003 and 2009, acquisitions have been on a steady rise since the early 2010s, with 37 acquisitions in 2018, 36 in 2017 and 33 in 2016.

The most notable acquisition in the space was LinkedIn’s $1.5 billion purchase of Lynda in 2015. The company, now known as LinkedIn Learning, is a provider of online video courses taught by industry experts in software, creative, and business skills.

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A spokesperson from RS Components comments:, “EdTech is clearly seeing a huge boom at the moment, with acquisitions on the rise and its market value set to hit $252 billion this year, so it’s great to see tech entrepreneurs all over the world bringing their talents to the industry.

“With more than 40% of EdTech companies setting up their headquarters in the US, it looks like the country is becoming a hub for EdTech startups. However, with companies in China and Luxembourg receiving the highest proportion of funding and the likes of Sweden, Italy and Austria being home to the most companies that are successfully securing funding, it’s clear that there are opportunities for EdTech startups all over the world.”

Report: 

View the full report here

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