US Edtech Market Update
US EdTech Transactions Per Quarter
(# of Transactions)
PE Strategic
379
Global inflationary pressures slowed EdTech M&A activity in 2023 as the Federal Reserve executed eight interest rate increases. The year saw 18 consecutive months of hiked rates — the longest streak since 2005. Increased interest rates led to decreased acquisition financing and EdTech M&A dollar volume. However, momentum returned in Q4 2023 and should continue through 2024. PE transactions continue to dominate Q1 2024, as 229 deals were announced, comprising 91% of total transactions. On a dollar basis, PE transactions comprised 99% of total EdTech volume during Q1 2024. Dry powder accumulations along with a normalization of interest rates could drive greater deal volumes. Given the projected return to historic market conditions — and the evergreen nature of EdTech — buyers should continue to seek investment opportunities in 2024.
307
287 276
325
278
251
247
219
263 246
193
239 241
229
217
199
169
54 44 41
37 37 30 24 20 22
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24
US EdTech Dollar Volume per Quarter
(In Million USD)
5,604 5,841
PE Strategic
1,891
4,304 4,287
1,704
3,877
3,457
3,223 3,298
3,512
3,359
3,877
2,452
2,690
1,603 3,298
2,112
792 928 3,900 3,950 340 767
1,620
Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24
Sources: CapIQ, Pitchbook
18
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