🏫 AI in K12 + Europe EdTech 200

Happy Monday 👋

AI in education is moving from 'novel innovation' to becoming more integrated within institutions. Improving learning outcomes remains a top driver, according to the HolonIQ 2024 interim survey results. AI-powered EdTech is emerging across all aspects of the learning journey, fueled by continuing investment, and growing government regulations on student data privacy and responsible AI use continues to shape the landscape. Some of these organizations feature in 200 of Europe's most promising EdTech startups.

This Week's Topics

🏫 AI in K12.  Exploring AI solutions to better learning outcomes in K12
📊 Chart Spotlight. A third of teachers use Gen AI in formulating lessons and assessments
📈 Higher Education Index. Recovered some losses over the last three months
🍎 Back to School Summit. September 10-11 in New York City
🏆 Europe EdTech 200. The most promising learning, teaching, and upskilling startups in the region
📖 Annual Education Outlook. 180+ pages of trends, insight, and data
💰 Education Deals of the Week. Funding and M&A

Don't forget to check out the 2024 Global Education Outlook and sign up for our new Daily Newsletters, Chart of the Day, and Impact Capital Markets. For unlimited access to over one million charts, request a demo.

🏫 AI in K12 Landscape

The use of artificial intelligence in K12 education is transitioning from ‘novel innovation’ taken up by a few, towards more integrated institutional adoption. Initial results of HolonIQ’s Annual AI Survey shows that by 2024 30% of education institutions surveyed have deployed a successful AI solution at their institution (up from 25% in the prior year) and 35% have successfully started or completed an AI pilot.

Recent developments signal AI's growing importance in driving learning outcomes. Microsoft's AI language tutor, Reading Coach (a standalone app), shows established players are taking AI's potential in education seriously. Tech giants have the resources to develop and refine AI tools effectively, with the reach to set the standard for use in classrooms globally. Concurrently, many governments are developing AI frameworks to regulate these technologies more efficiently, such as the recent actions by Japan which unveiled an international framework for regulation and use of generative AI. Adequate regulatory measures may lead to addressing critical concerns, such as the data privacy of students and educators.

These trusted infrastructures are still developing, along with teacher capability in the use of AI. While these guidelines are emerging, AI-based EdTech solutions abound across the entire learner lifecycle, with significant capital funding being channeled into AI EdTech solutions in areas such as teacher productivity, assessment & feedback, tutoring & support, and AI upskilling—HolonIQ's AI in K12 market map helps unpack the latest in this dynamic market.

🏫 AI in K12 - Market Map

📊 Charts Spotlight - A Third of Teachers Use Gen AI in Learning Processes

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The insights from a 2023 survey of US teachers reveal that one-third have embraced Generative AI to streamline their workflow by creating lesson plans, managing administrative duties, and automating grading processes, thus freeing up valuable time. Generative AI has the potential to enhance the teaching landscape and enrich student learning by improving educational quality and efficiency. Additionally, by providing swift and detailed feedback on student work and helping to improve the quality of assessments, this technology can cultivate a more satisfying teaching and learning experience, consequently increasing teacher retention rates.

While apprehension persists among some teachers regarding the impact of AI on their roles, the authenticity of student work, and its hindrance to the development of critical thinking skills, a significant number are actively exploring its potential for customization (26%) and student data analysis (22%). This hints at the possibility of personalized learning paths for students and improved teaching strategies. Overall, the data indicates a cautious yet increasing adoption of Generative AI tools by US teachers, emphasizing efficiency, content creation, and potential personalized learning methods.

📈 Capital Markets - Higher Education Index Recovers by 9%

HolonIQ tracks hundreds of listed education companies worldwide, acquisitions, and investment transactions. Our Impact Capital Markets newsletter tracks over 60 impact stock indices, including climate tech, emerging economies, and over 50 indices tracking healthcare innovation and education technology. Subscribe to Impact Capital Markets for data-driven insights on capital powering impact.

HolonIQ’s Higher Education index staged a recovery by December 2023 after a rough first half of 2023, although some of these gains have been eroded in 2024. Despite an overall decline this year, there were signs of improvement in late April, with a partial recovery from a 9% drop. Strategic Education ($3B MCap) demonstrated a 3M return of 24%, driven by their Q1 earnings. Their earnings report released this April showed revenue growth of 13.1%. IDP Education's ($3B MCap) stock price declined by 18% due to increased competition as students applying to Canadian universities now have additional test options alongside IELTS. In comparison, other major stocks within the index, such as CAE Inc. ($6B MCap) and Grand Canyon Education ($4B MCap) saw only moderate movements within the quarter. Despite labor market challenges and economic uncertainties, academic institutions are restructuring their strategies to integrate online programs & AI into their services. This shift has the potential to improve the index in the long term.

🏆 Europe EdTech 200

Each year, HolonIQ identifies the 1000 most promising EdTech startups globally. Region by region, we build a picture of each market and how technology is used in education, from PreK to Lifelong Upskilling. This week, we are revisiting the 200 most promising EdTech startups in Europe.

A couple of cohort members stood out with their latest actions in the EdTech space. Sdui Group (a German mobile communication platform for teachers) partnered with Royal Schedule (a Swedish AI platform to create timetables) to offer an AI-based GDPR-compliant tool for creating timetables within its platform. Rise Up (a French active learning platform) acquired Domoscio (a French adaptive learning platform), further expanding its offerings in the space. Edflex (a French online training content provider) acquired OfCourseMe (a recommendations engine for online courses) to expand its reach in Europe and synergize with its existing platform.

🎓 AI & the Future of Education Technology, London, 19 June

Join us for an executive roundtable as part of London EdTech Week on the role of AI in education and the future of education technology. We'll be reviewing HolonIQ's 6th annual survey on AI in Education, sharing exclusive research on AI and hearing from experts in the field from across Europe. We'll also be diving into how AI is shaping the Europe EdTech 200, HolonIQ's annual list of the most promising EdTech startups in Europe. Places are limited. Register Now.

🍎 Back to School Summit 10-11 Sept NYC

Registration for our flagship Back to School Summit in New York on September 10–11 is now open. This year, we're bringing over 500 global education leaders together for three incredible tracks: Higher Education and Workforce, Foundation and Philanthropy, and Technology and Finance.

📖 2024 Global Education Outlook

HolonIQ's annual analysis of the global education economy offers over 180 pages of in-depth insights on market data, investments, strategic shifts, and trends in education. Download the extract or purchase the full report.

💰 Education Deals of the Week

HolonIQ actively monitors and tracks capital flow in the Education market, spanning across all regions and transaction categories. Subscribe to our Daily Capital Markets newsletter to see the top deals daily.

Funding

📚 Futura, a personalized learning platform, raised $15M in a Series A funding round to improve its AI-driven algorithm.

📑 Teachino, an AI platform offering digital lesson preparation, raised $2.1M in venture capital, for product development and expansion. 

🔐 CyberNut, a US-based cybersecurity training platform raised $800K in a pre-seed funding round to expand its operations. 

🧑‍🎓 SecureMyScholarship, a scholarship connection platform for students and partner universities, secured $550K in bridge financing.

🗃️ Humy.ai, an AI platform offering personalized tutoring and educational resources, raised $137K to expand into the US market through a venture capital funding round.

📝 Gyan Live, an Indian-based test prep platform, received an undisclosed investment from Classplus, an EdTech unicorn, to accelerate its expansion efforts.

M&A

💼 Echo360, a learning solutions provider, acquired Inkling, aiming to reimagine corporate training and development.

🏢 Wiser, a Brazilian educational content provider, acquired Escola Conquer to expand their course offerings.

Thank you for reading. Have a great week ahead!
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