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September 2020
Best in Class:
Global Trends in EdTech from a
London Perspective
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
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Introduction and key findings.
Coronavirus has created huge
challenges for learning, and
EdTech is offering solutions
➔
Coronavirus is transforming the
way we learn at every life stage
➔
EdTech companies are helping
schools and universities adapt
and evolve
➔
Innovative reskilling and digital
apprenticeship providers are
preparing workforces for high
productivity roles
➔
EdTech solutions are facilitating
workplace remote learning and
onboarding
EdTech is a global growth sector,
and the UK leads in Europe

➔
Global EdTech investment is on
track to grow by 15% in 2020
➔
EdTech mega-rounds are a
common occurrence
➔
The UK receives 39% of all
European EdTech investment in
2019, more than the next three
countries combined
➔
UK EdTech investment has grown
4.4x since 2014
London is a major European
EdTech hub, and has notable
potential for growth
➔
London is the only European city
to feature in the global EdTech
top 10 by investment
➔
London ranks third by deal
count, after San Francisco and
New York
➔
London has attracted over
$750m in investment, 70% of all
UK EdTech investment since 2014
➔
London is the base for Europe’s
only EdTech unicorn
➔
London’s EdTech ecosystem is the
largest in Europe, with an
estimated value of $3.4bn
2015
2016
2017
2018
2019
2020E
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
Source: Dealroom.co. 2020 is annualized based on Jan - Aug.
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EdTech is a growth sector with global investment on track to surpass last year's
record by +15%.
VC investment in EdTech globally
$8.8B
$6.6B
$7.6B
$4.1B
$5.7B
$4.0B
Yuanfudao
Provides live courses and tutoring
Beijing
$1.0B Series G
Mar 2020
Zuoyebang
Platform to seek answers to study-related problems
Tianjin Shi
$750M Series E
Jun 2020
Byju’s
Online tutoring
Bengaluru
$200M Growth Equity
Jan 2020
Coursera
Free online courses from top universities
Mountain View
$130M Series F
Jul 2020
CampusLogic
Help students manage financial aid
Chandler, US
$120M Growth Equity
Jul 2020
Unacademy
Online learning platform
Bengaluru
$110M Series E
Feb 2020
Vedantu
Online tutoring
Bengaluru
$199M Series D
Jul 2020
MasterClass
Video courses developed around individual celebrities
San Francisco
$100M Series E
May 2020
Select top rounds in 2020
➔ Adaptive learning
➔ Engaging video content, slide shows, activities and
assessments
➔ Digital-first academic support and accessibility
➔ Smart assessment
➔ New types of curriculum in specialised areas such as
languages, science or coding
➔
Increasing online courses from traditional institutions
➔
Income-sharing agreements: study now, pay later
➔ Bootcamps to get learners ‘job ready’ in new professions
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
Source: Dealroom.co.
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Education is undergoing a skills transformation in every life learning stage.
Coronavirus has blurred the lines between physical and digital classrooms.
Primary and Secondary Education
Higher Education
Adult learning
Next-gen teaching
Online tutoring
Remote learning
Job training and reskilling
Career planning
Course materials
Classroom tech
Language learning
Corporate Learning & Development
San Francisco
New York
London
Beijing
Boston
Mountain View
Shanghai
Bangalore
Shenzhen
Tianjin Shi
Source: Dealroom.co.
Beijing
San Francisco
Shanghai
Bangalore
New York
Tianjin Shi
Mountain View
London
Boston
Shenzhen
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
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London is the only European tech hub in the global EdTech top 10.
High deal count volume suggests there is still significant growth ahead.
VC investment since 2014 by city
Number of rounds since 2014 by city
$7.5B
$4.0B
$3.5B
$1.7B
$1.7B
$1.3B
$1.2B
$0.8B
$0.5B
$0.4B
465
360
272
239
123
102
98
88
39
5
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
Source: Dealroom.co.
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Americas
Europe
Asia
Unicorns
($1B+)
Future unicorns
($250M-$1B)
Rising stars
($100M-$250M)
Europe’s only EdTech unicorn Learning Technologies Group is London based.
VC Investment since 2014
Select companies
United Kingdom
France
Ireland
Germany
Norway
Denmark
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
Source: Dealroom.co.
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The UK leads European EdTech attracting over $1 billion investment since 2014,
more than the next three countries combined.
$1.1B
$0.4B
$0.3B
$0.2B
$0.1B
$0.1B
2017
2018
2019
2020YTD
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
Source: Dealroom.co.
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UK EdTech investment consistently outpaces other leading European tech hubs.
VC investment in EdTech by country
$196M
$365M
$53M
United Kingdom
$50M
$75M
$18M
Germany
$183M
$122M
$55M
France
$66M
$41M
$8M
Ireland
$160M
$34M
$15M
$42M
2017
2018
2019
2020YTD
2017
2018
2019
2020YTD
2017
2018
2019
2020YTD
2017
2018
2019
2020YTD
2017
2018
2019
2020YTD
2017
2018
2019
2020YTD
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
Source: Dealroom.co.
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London leads European tech hubs as a destination of EdTech investment.
2017
2018
2019
2020YTD
VC investment in EdTech by city
$137M
$252M
$31M
London
$13M
$67M
$11M
Berlin
$25M
$92M
$55M
Paris
$12M
$35M
$6M
Dublin
$106M
$164M
$32M
$64M
2017
2018
2019
2020YTD
2017
2018
2019
2020YTD
2017
2018
2019
2020YTD
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
Source: Dealroom.co.
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London startups are raising more rounds than other European EdTech hubs.
2017
2018
2019
2020YTD
Count of financings in EdTech by city
49
36
15
London
6
11
6
Berlin
15
8
10
Paris
5
4
1
Dublin
40
16
10
4
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
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UK companies attracted 39% of total European EdTech investment in 2019.
EdTech VC investment in Europe
2014
2015
2016
2017
2018
2019
2020YTD
$138M
$118M
$160M
$196M
$285M
$53M
$708M
$731M
$232M
$431M
$396M
$272M
$134M
$277M
$271M
$512M
$446M
$65M
$180M
$115M
United
Kingdom
Rest of
ecosystem
$179M
Source: Dealroom.co. Individual figures may not match the stated total due to rounding.
Best in Class: Global Trends in EdTech from a London Perspective
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EdTech VC Investment in the UK has grown 4.4x since 2014.
London has attracted 62% of the national total.
EdTech VC investment in the United Kingdom
2014
2015
2016
2017
2018
2019
2020YTD
$37M
$40M
$55M
$59M
$161M
$22M
$196M
$365M
$53M
$160M
$118M
$138M
$101M
$79M
$106M
$137M
$204M
$13M
$65M
$52M
London
Rest of
ecosystem
$31M
Source: Dealroom.co. Individual figures may not match the stated total due to rounding.
September 2020
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
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European investors still contribute the majority of investment in European EdTech,
but US-based investors are playing an increasingly important role.
EdTech VC investment in Europe by source
2014
2015
2016
2017
2018
2019
2020YTD
$113M
$241M
$251M
$247M
$423M
$169M
$708M
$731M
$232M
$431M
$396M
$272M
$81M
$49M
Rest of World
$0.5B investment since 2014
Asia
$0.1B investment since 2014
North America
$0.7B investment since 2014
Europe
$1.7B investment since 2014
$84M
$64M
$63M
$106M
$111M
$165M
$93M
$203M
Source: Dealroom.co
$32M
$27M
$109M
$180M
$29M
$40M
London
Berlin
Paris
Beijing
New York
San Francisco
EdTech VC investment
since 2014
$0.8B
$0.2B
$0.3B
$7.5B
$1.7B
$4.0B
Number of rounds
since 2014
272
76
78
239
360
465
Number of VC-backed
EdTech startups
170
56
70
128
237
304
Population
8.9M
3.7M
12.3M
21.5M
8.3M
0.9M
Number of
Universities in Top
100
4
2
2
2
2
2
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
Source: Dealroom.co.
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London is home to world-leading universities and hundreds of VC-backed EdTech
startups. The biggest growth for the sector still lies ahead.
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
Source: Dealroom.co.
1. Employee growth over the last 6 months.
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Top 10 most funded London EdTech startups.
Company
Launch date
Disclosed funding
Employees
Latest funding
Select investors
FutureLearn
Social learning platform
2012
$103M
220+
+6%
$65M Growth Equity
Apr 2019
SEEK, The Open University
Graduway
University alumni services
2011
$74M
90+
-2%
$60M Growth Equity
Jul 2019
Saas Capita, K1 Investment Management
Kano Computing
A computer and coding kit for all ages
2013
$46M
50+
-18%
$1M Late VC
Jul 2020
Microsoft, Index Ventures, LocalGlobe, Barclays
MACAT
Deep analyses of the most influential books and papers
2011
$30M
15+
+0%
$30M Series A
Nov 2015
Undisclosed
Fuse Universal
Improves corporate training and internal communications
2008
$30M
130+
-8%
N/A Series A
Jun 2019
Education Growth Partners, Eight Roads Ventures,
Edenred Capital Partners
Pi-Top
STEM education platform
2014
$26M
45+
-2%
$4M Early VC
Sep 2019
Committed Capital, Hambro Perks, Volker Hirsch
Memrise
Language learning system
2010
$22M
100+
+1%
$15.5M Series B
Jun 2018
Balderton Capital, Avalon Ventures, Korelya Capital,
Octopus Ventures
Simpleshow
Takes complicated topics and visually explains them simply
2008
$20M
185+
+3%
$15M Series B
Oct 2017
BIP Investment Partners
WhiteHat
Career-focused Apprenticeships
2016
$20M
195+
+16%
$16M Series A
Jul 2019
Index Ventures, Lightspeed Venture Partners,
Salesforce Ventures
MyTutorWeb
Connects students with tutors online
2013
$17M
1 800+
+15%
$5M Late VC
Jun 2020
Thomas Hoegh, Mobeus Equity Partners, Clive
Cowdery, Stephen Welton
(1)

Best in Class: Global Trends in EdTech from a London Perspective
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What kind of impact has the crisis had on Edume?
We’ve seen our customers use our product more than ever as EduMe, a mobile-first solution, becomes
the best, or only, way to effectively train, communicate and engage with their workforce. Along the same
lines, we’ve managed to form new partnerships with the likes of Deliveroo, who are rolling out EduMe to
their couriers worldwide.
What made you choose London to found Edume?
I think London chose me. An opportunity arose in London so we decided to move over. I then quickly
found the perfect breeding ground for what became EduMe through access to great, international
talent, ease of doing business and a very outward looking mindset of bringing new great tech products
to the world.
What trends have you noticed from client behaviour so far in 2020?
Increased creativity and reliance on EduMe as the digital transformation has accelerated. From a
product perspective, this is an interesting time as I feel we have a very close dialogue with our
customers about how we can really help them and the things that move the needle.
What are your plans for the next 12 months?
Our recent Series A allows us to continue to invest heavily in a product that helps companies globally to
train, engage and communicate with their increasingly disperse and deskless workforce. We will
double-down on industries where we already have a good fit, like in the on-demand industry, but we’re
also seeing strong demand from other industries and this fundraise will allow us to expand. We’re
currently in aggressive hiring mode, as we’re looking for talent to join our team across all functions.
Jacob Waern
Founder
Corporate training
Customisable and
mobile-first remote training,
communication and
engagement platform for
deskless workers.
Improving business
efficiency, training and
onboarding, catering for the
2.7 billion deskless
workforce worldwide.
HQ: London
Founded: 2016
Founder: Jacob Waern
Select Investors: Valo
Ventures, Connect Ventures
Funding: $7M
September 2020
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
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How does Virtual Reality Learning work?
Immersive learning and training works as a major stimulus to help learners acquire the knowledge and skill. Learners
are fully immersed in a safe and realistic virtual environment where they are able to experiment, practice and learn
without the fear of failure. VR also allows unique interactivity, for example instructors can even control what learners
see on their headset in real time.
What kind of impact does experiential VR have on learning and retention?
The Edgar Dale cone of learning indicates that learners are likely to retain up to 90% of the knowledge, after a 2-week
period, when they use immersive learning solutions such as VR, this compares to 10% for reading an article, and 20%
for watching a video. What’s more, VR training is 4x faster than classroom training.
What are the accessibility challenges for VR learning?
The main key challenges are access to VR headsets and VR headsets hygiene (post-Covid) – solved by VRtuoso thanks
to its agnostic approach on consuming VR content also on personal devices, smartphones, tablets, PCs.
What are your biggest scaling challenges, how has Coronavirus impacted your business, and what are you
growth plans for 2020 and beyond?
Coronavirus has unfortunately altered the way learning must take place. It has validated the growing need for remote
training, education and collaboration solutions in the commercial sector. We have seen our biggest growth to date;
250% growth since the start of the year and +32% platform usage compared to the last 4 months of 2019. It is hard to
truly predict business forecasts during the Coronavirus period, but based on our recent engagements, we expect to
grow significantly in the next 12 months.
Frank Furnari
Founder
Corporate learning
A tool to create virtual
reality (VR) presentations
for corporate learning, sales
and marketing.
Changing the way
knowledge is delivered by
creating interactive and
immersive learning
experiences.
HQ: London
Founding: 2016
Founder: Frank Furnari
Selected investors: Symvan
Capital, Compagnia Bresciana
Investimenti
Funding: $0.7M
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
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How can apprenticeships address the challenges of equality and productivity in the UK?
Apprenticeships have adapted much more quickly to plug the skills gaps businesses face and now represent some of
the best routes into careers in tech and digital roles. Universities no longer have a monopoly on access to the top
careers and we're aiming for a more democratic approach, championing apprenticeships and non-traditional routes
to skills, training and career development. Many people are realising that choosing an apprenticeship, in areas where
there are skills gaps, such as digital and tech, can lead directly into top careers employment. We know that providing
opportunities in areas of business demand will support a sustainable economic recovery to help set the UK up for the
long term.
The pandemic has drastically impacted how we learn and work, how do apprenticeships fit in, or can they
adapt for distance learning and remote working?
Every company is on its own tech journey, and we’ve adapted our digital training this year to make our
apprenticeships accessible and we’ve learnt a lot. For many people having structured learning alongside their jobs,
and the support of a community of apprentices, has been vital during lockdown. It's one of the reasons we've
continued to grow, both our own headcount, and the number of apprentices and employers we work with.
If you were leaving school today, would you do an apprenticeship?
Yes certainly. The quality of content, subjects and opportunities for employment are now world class and that wasn't
the case when I left school.. Now, apprenticeships are a first choice for many young people who, as a result, are
confidently taking charge of their futures.
What are the biggest challenges and opportunities that you see ahead for WhiteHat’s scaling journey?
Our biggest emphasis once lockdown struck was on working out ways to deliver world class training and an authentic
community experience in a totally remote way. It meant investing in staff and extra capabilities, and adding to our
community offering, with an extra focus on wellbeing and mental health. Ultimately this approach has provided
opportunities, and there are some courses where remote learning has proved easier and more impactful.
Euan Blair and
Sophie Adelman
Co-Founders
Career advancement
Career-focussed modern
professional apprenticeships,
aimed at 800,000 UK 16-24 year
olds not in employment,
education or training.
Preparing young people for
high-productivity jobs,
safeguarding physical and
mental health and boosting
social mobility.
HQ: London
Founded: 2016
Founders: Euan Blair, Sophie Adelman
Select Investors: Lightspeed Venture
Partners, Index Ventures, Salesforce
Ventures
Funding: $20M
Best in Class: Global Trends in EdTech from a London Perspective
September 2020
Source: Dealroom.co.
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Methodology and definitions
•
EdTech is a collective term for all tech-enabled solutions intended to promote education.
•
Investment numbers refer to venture capital investment rounds such as seed, series A, B, C, …. late stage, and growth equity rounds. It excludes debt or
other non-equity funding, lending capital, grants and ICOs.
•
Buyouts, M&A, secondary rounds, and IPOs are treated as exits: excluded from funding data, but included in exit data.
•
A unicorn is defined as a rapidly scaling company (and tech enabled) that has reached a $1 billion valuation, on the basis of a funding round (unrealised),
acquisition or IPO (realised).
•
There are some notable edge-cases:
○
Companies that IPO-ed at or above $1 billion but subsequently dipped below that valuation, are still included as a $1B+ exit (examples: Alfa, Rovio,
eDreams).
○
Some companies have at some stage reached a $1 billion but subsequently raised, IPO-ed or were acquired below that value. In this case the
company is not counted as a unicorn (examples: Blippar, Home24).
○
If a unicorn moved HQ, the company is counted in the country where it reached unicorn status. Occasionally companies received dual HQ status.
•
A future unicorn is defined as a tech driven company valued at over $250 million but less than $1 billion, excluding acquired and/or public companies.
•
This report focuses on companies in the information age, i.e. after 1990. Most (but not all) unicorns are VC backed.