Polymath, Medly AI, and Chegg Sues Google
News for EdTech industry insiders
In addition to our founder spotlights, Windy City EdTech will now broaden it’s scope to include a monthly post that will cover the latest EdTech news, deals, and funding announcements. This is meant for all EdTech founders, investors, and industry insiders whether or not you live in Chicago/the Midwest. Enjoy!
Recent Funding Announcements
Polymath
Secured $1M in Angel Funding with investment from ClassDojo CTO Liam Don to accelerate expansion into the US market. Polymath focuses on developing educational gaming applications aimed at enhancing children’s learning experiences. (More)
Medly AI
Raised $1.7 million seed funding (led by Eka Ventures) to solve the issue of equitable access to personalized education. Since launch, Medly AI has reached 30,000 monthly active users and received additional support from UCL, Innovate UK, Microsoft, and Google. (More)
Pathify
Raised $25M in later-stage VC funding (led by Five Elms Capital) to expand its digital engagement platform for higher education institutions, which centralizes student services and academic resources. (More)Brains & Motion
Secured $11.22M in Series B funding for its extracurricular coaching programs, which provide after-school STEM and sports initiatives to K-12 students nationwide. (More)Generation Genius
Acquired by Newsela for $100M to integrate its K-12 science and math streaming videos into Newsela’s adaptive literacy platform. The deal reflects growing demand for multimedia STEM resources. (More)Hiveclass
Landed $1.5M in seed funding (Spring Mountain Capital) to scale its mobile platform for youth sports training and PE curriculum gamification. Targets 500+ schools by mid-2025. (More)Esteam
Received undisclosed venture funding from AI Fund to advance its virtual reading tutor platform, which uses speech recognition to support early literacy in Title I schools. (More)Guidde
Secured $15M in new funding led by Qualcomm Ventures to enhance its AI-driven software training video platform. (More)
The Latest
Chegg Sues Google Over AI Search Tool Impacting User Traffic
Chegg has filed a lawsuit against Google’s parent company, Alphabet, alleging that Google’s AI-generated overviews are diverting traffic away from Chegg’s platform, adversely affecting its revenues and user base. (More)Apple Commits $500 Billion to Workforce Development, AI, and U.S. Education
Apple has announced a $500 billion investment plan over the next four years, focusing on workforce development, artificial intelligence, and manufacturing, aiming to strengthen U.S. education and technological infrastructure. (More)Debunking the Dropout-to-Billionaire Narrative of Unicorn Founders
A study by the Stanford Venture Capital Initiative reveals that contrary to common belief unicorn founders are 6x more likely to hold a doctoral degree and 3x more likely to have a master’s degree. The study also found that public and private universities have equal “unicorn production rates” and that more and more successful founders complete their education outside of the U.S. (More)
EdTech Investment Hits Multi-Year Low in 2024
EdTech startup funding in 2024 reached its lowest level in years, with both investment amounts and deal counts declining significantly. Factors contributing to this downturn include market saturation, increased competition from AI-driven educational tools, and a cautious investment climate. The shift in investor focus towards generative AI technologies has also diverted funds away from traditional EdTech ventures. (More here and here)
Higher Ed Embraces Built-In AI for Learning and Administration
Higher Ed institutions are integrating built-in generative AI tools like Microsoft Copilot and Google Gemini to enhance learning, streamline administration, and ensure equitable access to AI-powered resources. (More)
To Make EdTech More Secure, Software Companies Need to Step Up
With education technology software accounting for 55% of K-12 school data breaches between 2016 and 2021, there’s increasing pressure on software companies to enhance security measures to protect student data. (More)EdTech M&A Heats Up
Recent acquisitions like WorkDove (Quantum Workplace) and Blue Sky eLearn (Momentive) signal private equity’s growing appetite for corporate learning platforms. (More here and here)Wiley to Develop AI Guidelines for Researchers
In response to a study revealing that 70% of researchers seek clear guidance on AI usage, Wiley is developing comprehensive AI guidelines for authors to address ethical, practical, and technical challenges in scholarly research. (More)
College Leaders Split on Generative AI’s Impact
A survey of university administrators reveals mixed opinions on generative AI, with many seeing its potential to enhance learning while expressing concerns about academic integrity and institutional preparedness. (More)
Global Education Market Valued at $7.6 Trillion
The global education market is valued at $7.6 trillion, with governments contributing 60-70% of total spending. K-12 and post-secondary education sectors account for 80% of the market, while early childhood education and workforce training each represent approximately 11-12%. The market is growing at a 4.4% compound annual growth rate, driven by government policies, technological advancements, and demographic and labor market trends. (More)