Startups in educational technology, a growing sector often overlooked in the past, are now finding themselves near the front of the class.
More than 60% of U.S. public school students in grades K-12 started the school year remotely, according to data service Burbio. These at-home learners are feeding demand for an early wave of education startups and accelerating growth at newer companies in the field.
So far in the third quarter, venture investors have inked 46 ed tech deals worth $690 million, on track for the highest quarterly deal volume since 2015, estimates PitchBook. They’re anticipating consumers and schools will stick with the technology even after the pandemic passes.
American parents “have become more active in their child’s education as a result of Covid…we don’t believe they will go back to the old way,” said Jennifer Carolan, a general partner at Reach Capital, a San Francisco VC firm that specializes in education tech.