Booming demand helps UK edtech sector lead Europe
● More than 1,000 firms now operating ● UK takes lion’s share of European cash
The UK’S educational technology (edtech) sector – which is seeing booming demand amid the Covid-19 lockdown – now leads Europe in terms of attracting investment, according to a report out today.
Scottish firms including Edinburgh’s Sumdog and Robotical and science resources developer Twig in Glasgow are among the key players in an industry which is one of the fastest growing parts of the technology sector and expected to be worth some £3.4 billion by next year.
New figures compiled by Dealroom.co and Tech Nation for the Digital Economy Council (DEC) show that there are now more than 1,000 UK edtech start-ups and that the sector attracted 41 per cent of all European investment last year.
The $289m (£237m) in venture capital funding secured in 2019 was up 91 per cent on the $151m invested the previous year. In contrast, investment in the US fell by 12 per cent and European investment grew only by 8 per cent.
The strong UK performance is thought to be partly down to the fact edtech companies in the UK tend to be at an earlier stage in development than those in markets like the US.
Since 2014, edtech companies in the UK have raised a total of $857m in venture funding.
DEC said that, faced with the challenge of schooling children at home, often while carrying on their own jobs, parents are increasingly using resources from large companies, including Google, Amazon, Microsoft, Pearson and others as well as many smaller players.
Caroline Dinenage, the UK’S minister for digital, said: “Over the last few 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.”
Gerard Grech, chief executive of Tech Nation, said it is increasingly evident that coronavirus is accelerating the adoption of edtech, as both pupils 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.”
Founded in 2010, Sumdog has developed an e-learning platform designed to improve skills and attainment in numeracy and literacy in children aged 5-14. Its fundraising has included £1.4m from Nesta Impact Investments and the Scottish Investment Bank.
At the end of 2019, Robotical, which is behind Marty the Robot, raised £43,291 in a crowdfundingcampaign.support for digital media company Twig World has included a £3.5m injection from Imperial College London.