The global edtech boom is fading as investors look elsewhere

Innovation

Venture capital is moving away from K-12 edtech worldwide as investors prioritize AI tools and workforce training with clearer returns.

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 U.S.-based venture firms, Tracxn data shows.