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The State of Edtech: Regional Updates

EDT&Partners
October 2023

The State of Edtech: Europe

As we step into the new school year, the European Edtech market is undergoing significant shifts and transformations, most notably with AI, which has established itself as a pivotal force poised to reshape K-12 education. While these advancements unfold, we’re still grappling with an overall decrease in Edtech funding in 2023. Nonetheless, notable exceptions and outliers persist, demonstrating the sector’s enduring commitment to innovation.

  1. AI is a present reality in K-12 education, with a noteworthy 60% of analyzed LMSs now incorporating AI functionalities.  

With the new school year now underway, we’ve noticed an interesting fact: Our analysis of well-known LMSs, reveals that 60% of them have incorporated AI in their platforms, and another 30% have announced new AI features to come in the coming months. Some have internally developed these new functionalities, while others have chosen to acquihire startups with expertise in AI.

The goal of these functionalities is clearly divided into three main categories: first, the ones built to engage students and personalize the learning experience; second, those aimed to help and facilitate teacher tasks; and third, those focused on improving workflows and reducing costs for content creators. Some of the uses of AI in these LMSs include:

  • Optimizing search results within the LMS finder/search bar to help students and teachers understand how the LMS functions or find answers related to the LMS content. For instance, a student can inquire about solving a math problem, and the search results will scan all units, displaying relevant results addressing their query.
  • Creating questions and aiding in lesson planning based on content data, helping teachers. students auto-evaluation.

  • Generating text from images to help content creators and enabling the creation of various educational formats like mind maps and diagrams, thereby improving content creators’ workflows and reducing costs. helping publishers.

These functionalities may not be the most innovative, however, the most groundbreaking aspect of these functionalities is that they are already being implemented in LMS solutions.

2. It’s no secret that Edtech funding has taken a major downturn since 2021, in fact, the figures for this year are the worst ever, however, there are glimmers of hope. 

Global venture funding of Education and Edtech Startups reached an all-time high in 2021 as a result of the pandemic, but funding fell drastically in 2022. Predictions indicate that 2023 is on track to record a historic low in funding, even when compared to the figures preceding the pandemic.

However, we can find hope in these recent developments:

  • Brighteye, a European Edtech VC, has completed the final close of its second fund at €100M to invest in this second semester, doubling the size of its first fund.
  • Amsterdam-based Edtech Lepaya secures €36 million in funding for an AI-driven transformation of the corporate learning market. (Sept 2023)
  • Madrid-Based Correcto Raises $7M in Seed Round to Expand Its Presence in Latin America (Sept 2023)

Events in Europe we’re attending

11-12 October  |  Amsterdam, The Netherlands
The conference and exhibition will welcome more the 5,000 educators and Edtech providers in Europe.

18-22 October  | Frankfurt, Germany
The Frankfurt Book Fair, founded in 1454, is the world’s largest and oldest trade fair for books and magazines.

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The State of Edtech: LATAM

In Latin America, the Edtech landscape is marked by a growing demand for Edtechs that address the region’s educational challenges. With a notable rise in demand for high-skilled workers and workforce training, there is a great opportunity for  Edtechs dedicated to workforce upskilling.

The Skills Gap and Edtech Opportunities

Latin America has just under half a billion people demanding innovation in literacy and numeracy, as well as the acquisition of 21st-century skills and knowledge.

    • In Argentina, 73% of companies struggle to hire staff with the right skill sets.
    • 67% of Peruvian companies and 65% of Mexican companies struggle with talent shortages and hiring challenges. Similarly, 66% of Costa Rican companies and 61% of Colombian companies face similar issues.
    • The lack of quality jobs (2021 OECD) is a key driver of social dissatisfaction and ambitious regional agendas to increase innovation through education and skills.

Along with the rising trend of nearshoring in Latin America, these trends are reshaping the region’s workforce demands and creating an even greater urgency to close the Latin American skills gap.

As companies seek high-skilled workers, especially in technology and language proficiency, the demand for Edtech solutions is surging. 

  • This growth is notably prominent among young adults, with a significant 86% of Brazilian youth engaging in online education or courses to improve their professional skills compared with 78% of young people in India and 74% in the US.

In response to this growing demand, Edtechs dedicated to workforce upskilling have seen the most expansion in the region. In fact, workforce and management systems comprise almost half the Edtech startups founded in Latin America.

The Latin American Edtech landscape boasts 1,500+ companies, with Brazil securing over 50% of total VC funding, trailed by Mexico at 19%.

Events in LATAM we’re attending

25 Nov – 03 Dec  |  Guadalajara, Mexico
The largest and most important gathering of Spanish-language publishing in the world. The European Union has been present at the FIL since 2011 and this year the EU is attending as the Guest of Honor.

07-15 Oct  |  Monterrey, Mexico
The 31st Monterrey International Book Fair (FIL) will be held at Cintermex from October 7 to 15, 2023, in Monterrey, Nuevo Leon, Mexico. FILM brings together the whole community to promote and encourage reading for all ages.

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The State of Edtech: APAC

Navigating the ever-changing landscape of education technology, the APAC region is facing both challenges and advancements in the Edtech sector. From Byju’s ongoing struggles, marked by substantial job cuts, to notable victories such as Elsa’s significant $20 million investment and Mathpresso’s strategic funding from KT, the region reflects the blend of opportunities and challenges shaping the state of Edtech in APAC.

  • Byju’s challenges persist. The world’s most valuable Edtech company is facing ongoing challenges with the news of an additional 5,500 job cuts.
  • Some good news coming from the AI-powered English Learning App, Elsa, which secured an impressive investment with a $20 million new funding round. 
  • Google-backed edtech company Mathpresso has raised $8 million (10 billion KRW) from Korea’s telecom giant, KT. This brings the total funding to about $130 million. Previous backers include Google, GGV Capital, Goodwater Capital, and SoftBank Ventures Asia.

Events in APAC we’re attending

4-5 Oct  |  Bangkok, Thailand
Bett Asia is the largest senior gathering of educational leaders, practitioners and industry experts from the region and beyond. Showcasing the most exciting tools, technologies and resources to the region’s key qualified educational buyers.

Events, edtech news, by your cloud and business of education consulting firm partner EDT&Partners Didac India

17-19 Oct  |  Bangalore, India
The largest event in Asia for educational resources and technology-based products & solutions for all levels and segments of the education and skills sector.

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The State of Edtech: MENA

Amidst the dynamic developments in MENA’s Edtech sector, education is increasingly intersecting with the region’s challenges, notably climate change, as evident in the forthcoming COP28 Conference set to take place in Dubai from November 30th to December 12th.

We’re witnessing rapid growth in the MENA Edtech market marked by significant trends such as AI integration, gamification, and the expansion of online learning, driven by the quest for personalized, efficient education, and a commitment to addressing issues like climate change education. These trends highlight the industry’s dedication to innovation while tackling regional challenges and opportunities head-on.

1. Examples of how MENA countries are adopting climate change education:

  • Curriculum development: Many MENA countries are developing or updating their curricula to include climate change education. For example, the United Arab Emirates has introduced a new curriculum that includes climate change education in all grades. Saudi Arabia has also introduced climate change education into its curriculum.
  • Teacher training: In response to the need for climate change education, several countries in the MENA region are taking initiatives to train educators. In Morocco, for instance, the World Bank is actively supporting a program to train teachers in climate change education.
  • Public awareness: Beyond the classroom, MENA nations are also actively engaging in public awareness campaigns and educational programs. One notable example is the Qatar Green Building Council, which is running a public awareness campaign aimed at educating the community about climate change.
  • Research: MENA countries are also investing in research on climate change education. For example, the UAE University is conducting research to address the effectiveness of different climate change education programs.

2. Other MENA Edtech Highlights:

  • Saudi Arabia-based Edtech YaSchools has closed a $600,000 Seed round from a group of angel investors. 
  • Moroccan Edtech Smartprof has received an undisclosed investment from Fuze to expand its presence in the Francophone African tech ecosystem.
  • Alef Education, an Abu Dhabi-based Edtech firm, is considering an initial public offering in the United Arab Emirates as the number of student enrollments surges. 
  • EdVentures and VMS have united to revolutionize MENA’s Edtech. This partnership signifies a turning point in Saudi Arabia and Egypt’s education technology landscape, fostering innovation in a sector crucial for societal progress.
Events, edtech news, by your cloud and business of education consulting firm partner EDT&Partners

Events in MENA we’re attending

Events, edtech news, by your cloud and business of education consulting firm partner EDT&Partners Gess Dubai

30 Oct-1 Nov  | Dubai, UAE
The exhibition provides educators access to the products and solutions that meet the needs of the modern classroom and transform the way students learn.

Events, edtech news, by your cloud and business of education consulting firm partner EDT&Partners Rewired Summit

08 Dec  | Dubai, UAE
The RewirEd Summit coincides with COP 28 and therefore is centered around the theme of climate change. For the MENA region, the Rewired Summit is a valuable opportunity to share experiences and glean insights from other nations on leveraging education for climate crisis mitigation.

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Who are we? Experienced Education Consultants

EDT&Partners is your Cloud and Business of Education Partner. As a leading business education firm and AWS Public Sector Partner, we work with publishers, edtechs, universities, not-for-profits, networks and public entities to support and to accelerate innovation, strategy and impact.

Our firm was created in 2016 by business, tech, and education consultants to IMAGINE, INSPIRE and IMPROVE education. We help organizations at all stages with specialized regional consultants in more than 12 countries. Our consulting services provide valuable guidance and support for those navigating the complex and ever-changing landscape of education and technology from K12 to higher education and beyond.

Our services are divided into two dimensions: growth and tech. For consulting for growth, we offer services of product-market fit analysis, curriculum analysis & gap identification, product optimization analysis & recommendations, and price analysis, market size (TAM, SAM, SOM), channel partners, distributors, and resellers, GTM strategy, and services related to marketing: brand awareness, communication & events. For Tech & Product, we offer services of, interoperability, including a technical audit, a product audit, and a business audit, services of Cloud AWS, including migration, optimization, and leveraging data, we also offer services of AI & ML product enhancement, and, at last, we have our Product-market / Product-business fit.

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