The global ed tech sector received $3 billion of venture capital funding in the first quarter of 2020, as the Covid-19 pandemic crippled traditional education providers and forced all forms of learning online.
According to HolonIQ, a data provider, Q1 marked “one of the largest quarters” in terms of venture capital deployed in the ed tech sector, as more than 1.5 billion learners – over 90% of the world’s student population – relied on online platforms to facilitate home learning amid widespread lockdowns.
With students confined to their homes, schools and universities worldwide have outsourced many aspects of their provision to digital specialists, which have seen their user numbers inflate to record levels in recent weeks.
The $3 billion figure was boosted by Chinese online education provider Yuanfudao’s $1 billion Series G funding round, HolonIQ said, which marked the largest-ever venture financing round in the ed tech arena.
Since 2010, more than $35 billion of venture capital funding has flowed into ed tech businesses. According to HolonIQ, the amount of venture capital pouring into the sector will “nearly triple” over the next decade.