EdTech Startup Monitor 2024

EdTech startups battle bureaucracy and funding hurdles German EdTech startups see the digital education sector as a future field, but slow digitalization, bureaucracy and a lack of funding are slowing them down.

Bielefeld and Berlin, 23 October 2024 - German EdTech (Educational Technology) start-ups see the digitalization of education as essential for the future. Nevertheless, 9 out of 10 founders criticize that Germany is lagging behind in international comparison. This is one of the key findings of the EdTech Startup Monitor, a study by the Founders Foundation and the Startup Association.

EdTech startups: pioneers in digital education, but financial hurdles remain

493 EdTech startups are currently active in Germany, and 91% of founders emphasize that the pace of digitalization in the education sector is too slow. While Berlin leads the way with 29% of EdTech companies, cities such as Munich, Hamburg, Cologne and Düsseldorf are also important locations.

Despite their important role in digitalization, EdTech startups are struggling with financial hurdles: Only 4% of startups have received venture capital so far - far less than startups in general. EdTechs are also less likely to receive support from business angels (24% compared to 32% in the start-up scene).

Women found a disproportionately high number of EdTech start-ups

With 36% of founders being women, the proportion of women in EdTech startups is twice as high as the national startup average. The diversity in terms of study backgrounds is also remarkable: many founders come from fields such as computer science, humanities or social sciences.

Bureaucratic hurdles slow down EdTech start-ups

Sales are the biggest challenge for 65% of EdTech start-ups. According to 89% of founders, schools and universities are particularly reluctant to introduce new technologies. Added to this is the federal education system, which complicates the market structure due to different legal requirements.

The market structure of EdTech start-ups is diverse: 40% of sales are generated in the B2C sector (directly with end users), while only 22% of sales are generated in the B2G sector (with public customers).

Future prospects despite challenges

Despite all the hurdles, 92% of EdTech founders are convinced that they would start up again. Their motivation is strongly characterized by an intrinsic enthusiasm for education. As Dominik Gross, Managing Director of the Founders Foundation, emphasizes, the drive to revolutionize education is great and essential for Germany's future.

The EdTech Startup Monitor 2024 can be found at Startup Verband.