U.S. edtech market is biggest globally, report says
The United States has the largest number of edtech companies and the most venture capital funding for those companies, according to a report released this week from the UK-based industrial and electronics company RS Components.
Through an analysis of data taken from the business research platform Crunchbase, the report found 1,385 edtech companies in the U.S. — 43 percent of the total number of edtech companies globally. The next largest number of edtech companies in another country was India with 327.
Edtech is growing, with the total market value worldwide set to reach $252 billion this year, Forbes reported.
The U.S. also features the most total venture capital funding for edtech companies with $8.3 million, more than $5.9 million more than second place China, according to the report.
In the U.S., the online education company 2U led the way as the most-funded edtech company with more than $400 million. It was ranked fourth globally, under India’s BYJUS and China’s Yuanfudao and Zhangmen. Thirteen of the top 20 most-funded edtech companies are headquartered in the U.S., according to the report.
New York City was found to have the highest density of edtech companies globally with 155. San Francisco and Chicago are ranked second and third with 137 and 54, respectively.
Despite the prevalence of edtech in the U.S., a spokesperson for RS Components said in a statement that the country’s venture capital funding in comparison to other countries was “lower than expected.” The company urged schools and teachers to focus on the implementation of additional technology-focused education and curriculums focused on the sciences.
“This means companies [in the U.S.] are not being used to their full potential, which could be having a knock-on effect on pupils’ education,” the company said in its statement. “Teachers must be given the correct training and resources in order to help inspire their pupils toward a vast number of careers that depend on technology to give each child a fair chance and opportunity to succeed in a role of their choice in the future.”