The UK is a leader in the field, with its startups attracting 41% of all European investment last year according to data from Tech Nation’s Data Commons. Edtech investment climbed 91% from 2018 to 2019, in contrast investment in the US actually fell by 12% and European investment grew only by 8%.
Edtech companies in the UK are numerous but tend to be at an earlier stage in development than those in markets like the US. Companies have raised smaller sums of money than those in sectors including AI, fintech and healthtech and are less well equipped to cope with the sudden demand from parents or schools.
Faced with the challenge of schooling children at home, often while carrying on their own jobs, parents are using resources from large and small tech companies, including Google, Amazon, Microsoft, the BBC, Pearson and others. Startups in the sector include Show My Homework from Satchel, Lingumi, Learning People, Firefly Learning and Komodo Learning.
Edtech has huge potential around the world to democratise access to education and UK companies are well-placed to provide services into this international market. According to new figures from Dealroom.co, UK edtech companies attracted $289m in venture capital investment in 2019, up sharply on the $151m invested the previous year. Since 2014, edtech companies in the UK have raised a total of $857m in venture funding.
Global investment was already rising steadily at the start of this year, driven by a few mega rounds, notably Yuanfudao ($1B Series G), Byju's ($200M Growth Equity), Unacademy ($110 Series E).
The Department for Education has committed over £100 million to provide devices and access to the internet for vulnerable and disadvantaged children and ensuring every school that needs it has access to free, expert technical support to get set up on Google for Education or Microsoft’s Office 365 Education. The DfE is also offering peer-to-peer support from schools and colleges leading the way with the use of education technology.
The government has also backed the Oak National Academy Initiative. Set up by teachers, the online academy delivers curriculum based video lessons and resources.
Caroline Dinenage, Minister for Digital, said: “Over the last six weeks the UK’s world-leading edtech sector has used its expertise to develop practical solutions and online learning tools for schools, parents and pupils during this challenging time. The work it is doing right now will pave the way for new technology to help shape the future of education in the UK and around the world. I thank the sector for all its efforts and urge it to keep it up."
Cindy Rose, CEO, Microsoft UK, said: “It has been inspiring to see the tenacity and innovation across the education sector as the world has moved to remote learning. We have seen amazing use of EdTech including Microsoft Teams, Minecraft and Flipgrid ensuring children are still learning, connected and engaged while schools are closed. Continued investment in UK Edtech is a fundamental ingredient for our future growth and productivity as well as our global competitiveness.”
Doug Gurr, country manager, Amazon, said: “The UK edtech sector provides exciting opportunities to help children succeed in the digital age, regardless of their background. We support the sector as it plays an important role in ensuring children are able to continue learning, no matter where they are in the country. We have launched a range of free educational content for families, a virtual Amazon Future Engineer coding programme for students aged 12 to 17, and donated free devices to help children from disadvantaged backgrounds keep up-to-date with their school work and stay in touch with their teachers.”
Ronan Harris, Google UK & Ireland Managing Director, said: “We've long been committed to expanding access to learning through technology. With school closures across the country we've worked closely with educators and government to enable remote learning via technology. Our Teach from Home hub provides tools and resources for teachers and guardians to support at home learning. We've also worked with teachers to create the Oak National Academy - a virtual school - which delivered 2.2 million lessons in its first week of operation.”
Gerard Grech, chief executive, Tech Nation, said: “With the global edtech sector seeing a 22% increase in investment in the first quarter of 2020, it is increasingly evident that Coronavirus is accelerating the adoption of EdTech, as both students and parents are looking for alternatives to continue with the education process. As the impact of the pandemic is felt across many business sectors, there is an opportunity for innovative solutions to help people find work, but also for education platforms which help people to acquire the skills they need throughout their life, including our own Tech Nation’s Digital Business Academy, which has seen record uptake in the last two months’.
Amy Orben, research fellow at Cambridge University, said: “Digital games and platforms can potentially mitigate some of the negative consequences children and adolescents are feeling from being separated from their friends and should not be underestimated. I encourage parents to worry less about times spent by their children on screens and instead focus on what they’re doing with them. Activities such as video calling friends, exchanges via social media or playing Fortnite with friends online will all help keep children and teenagers connected throughout the lockdown.”