Funding in the EdTech sector has shown a mixed performance over the past year, with an 11% increase in deals but a significant 31% decrease in the median round size. According to NewMarketPitch, first financings nearly doubled, indicating that many new companies are entering the market. However, buyers in school districts and corporate learning are now encountering more seed-funded vendors while also demanding evidence of product effectiveness.
Preply topped the fundraising lists, securing $150 million, the highest amount raised by any EdTech firm in the last year. Throughout the same period, NewMarketPitch reported a total of 108 deals totaling at least $907 million, contrasting with 97 deals worth $1.1 billion the previous year. While deal activity increased, the overall funding fell by 19%, and the median round size diminished substantially.
Removing larger funding rounds from the picture does not alter the trend. Excluding deals over $50 million, startups together still raised at least $587 million, down 25%. The total funding is now divided among more companies, resulting in each receiving less capital.
First Checks Up, Series A Down
Despite the pressures in the EdTech funding landscape, investors have become more willing to back new companies. Data indicates that first financings increased to 37 from 19, while the pipeline for Series A rounds has contracted significantly. This shift suggests a growing number of startups are launching, but fewer are receiving the substantial funding typically needed for expansion.
Recent transactions illustrate this pattern. Startups like Medly AI, receiving an $8 million seed round for AI tutoring, and Aristotle, securing $5 million for AI tutoring across subjects, highlight the trend of smaller seed rounds gaining popularity over traditional larger Series A rounds. In particular, 63% of funding rounds with disclosed amounts fell under $5 million, up from 53% in the previous year.
The total global EdTech venture investment recorded by HolonIQ during the first half of 2026 was about $1 billion, reflecting a decline of 26% from approximately $1.35 billion in the same period in 2025. This indicates a steady number of deals, albeit with smaller amounts of capital involved.
Tutoring and Workforce Skills Draw Investment
Funding in the EdTech sector has predominantly shifted toward tutoring, test preparation, and adaptive learning solutions, with employers continuing to invest in software that enhances employee skills. These trends underscore the market’s focus on practical applications, with established businesses raising funds to expand existing services rather than solely relying on new innovations.
District spending in the U.S. K-12 EdTech sector is projected by Mordor Intelligence to reach $31.24 billion in 2026, potentially increasing to $53.08 billion by 2032. Significant procurement changes are occurring as districts transition from emergency pandemic-era purchases to more strategic planning, influenced by the expiration of ESSER relief funding. Authorities are increasingly scrutinizing evidence of product efficacy and ensuring compliance with cybersecurity and student data protection standards.
Amira Learning recently exemplified the intersection of funding and procurement by being chosen by Georgia as the state’s free, universal reading screener for the 2025-2026 school year. Additionally, NewMarketPitch reported a $5 million deal for Amira Learning in September 2026.
As customer expenditures in the EdTech space continue to rise, the need for transparency regarding product effectiveness is paramount. Effective evaluations from previous users, such as those provided by studies on student engagement and outcomes using tools like Khan Academy, emphasize the importance of product functionality over mere financial backing.
The forthcoming updates from NewMarketPitch on Series A funding will be crucial to understanding the ongoing viability of new EdTech firms, particularly those relying on initial seed funding to navigate their market entry.
