UK EdTech investment has fallen 81 per cent since 2021. The companies that survived are doing something different.
Beauhurst's April analysis of the UK EdTech sector shows investment collapsed from a pandemic-era peak of £698 million to £132 million in 2025. New company formations fell to 39 last year. What remains is a sector that has self-selected for resilience, and the pattern of who is getting funded tells you what actually works.
By Wistl Editorial · · Labs
UK EdTech attracted £697.8 million in investment at the height of the pandemic boom in 2021, a figure inflated by emergency demand for remote learning tools and a global surge in venture capital into education technology. The correction since then has been steep. Investment fell every year from 2021 to 2025, reaching £131.6 million last year, according to Beauhurst's April 2026 analysis of the sector. New company formations followed the same arc: 136 in 2021, 39 in 2025. The post-pandemic reckoning for EdTech has been sharper than in most technology sectors. What the aggregate figures obscure