This article was originally published in Rest of World, which covers technology’s impact outside the West.
The pandemic’s biggest bet on online learning has gone bust.
Global edtech investment peaked at $16.7 billion in 2021, fueled by lockdowns that kept millions of children out of classrooms. By 2025, venture capital had plummeted to less than $3 billion, according to Tracxn, a Bengaluru-based platform that tracks global startup funding.
The majority of global edtech funding comes from US-based venture firms, Tracxn data shows.
The edtech downturn mirrors a wider shift in startup funding, where investors are choosing products built on ideas that simply sound big. HolonIQ, a research firm that advises governments and investors on education sectors, noted in a February analysis that money is flowing toward AI tools and training platforms that help companies hire, cut costs, and teach workers new skills.
Startup funding is prioritising efficiency over hype, and edtech is no exception.
“Venture capital flows reflected a shift from volume to intention,” HolonIQ wrote in a February 6 post on its website, reflecting back on 2025. “Investors concentrated capital in AI-enabled products, workforce-aligned platforms, and K–12...
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