EdTech investment is cooling but London stays hot

London continues to lead the way in UK EdTech, even as the sector shifts from investment highs to impact-driven growth.

Every June, London EdTech Week provides a vital moment to take stock of the education technology sector, techUK is proud once again to support this important week for the EdTech Sector. In addition to the EdTechX summit, the week-long celebration brings together a vibrant cross-section of founders, educators and investors for a week of community-focused events. 

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The UK continues to be a powerhouse for EdTech innovation with London, depending on the source of analysis, playing home to between 35 and 39 per cent of all EdTech companies, reinforcing its position as a critical hub for education and innovation.

The past year has seen a shift in the sector’s momentum. In 2024, UK EdTech investment totalled approximately $222 million, down significantly from $547 million in 2023. This cooling reflects wider trends in the tech investment landscape, where interest remains high but funding is more measured and impact-focused.

Despite this cooling effect, there’s been whipsaw surge in interest around how AI can enhance and evolve existing education technologies. AI is no longer an edge case in EdTech, it has fast become ubiquitous to conversations across K12, HE and corporate learning. 

A number of other growth enablers are helping to shape the next phase of EdTech. A new generation of startups, often founded by talent from leading tech companies, is bringing fresh energy and ambition into the sector and social platforms like YouTube and TikTok are becoming unconventional but effective learning spaces for younger audiences. Similarly, with the rising cost of traditional education, the case for accessible, flexible digital alternatives continues to strengthen.

As part of London EdTech Week, we’ll be attending and supporting the EdTechX Summit, which takes place on Tuesday 17 June at County Hall. We encourage our members and partners to join us there. 

In addition, we’re currently planning a series of specialist EdTech events in partnership with Ufi VocTech Trust, UCL EdTech Labs, and DOHE, focused on deeper exploration of key themes affecting the sector. If there are particular topics, trends, or challenges you’d like to see tackled, we’d love to hear from you


Austin Earl

Austin Earl

Programme Manager, Education and EdTech, techUK

Austin leads techUK’s Education and EdTech programme, shaping strategies that support the digital transformation of schools, colleges, and universities. His work focuses on strengthening the UK’s education technology ecosystem, enhancing core technology foundations, and advancing the adoption of emerging technologies to improve educational outcomes.

Austin also chairs the EdTech Advisory Panel for AI in Education, contributing to national discussions on the future of EdTech, AI, and the UK's Education system.