The Dutch EdTech sector is on a strong growth trajectory, but these particular barriers are holding it back, reveals a new report from the Dutch EdTech Foundation (Stichting Dutch EdTech).
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The Dutch edtech sector has seen record growth (4x) in five years to nearly $2B. However, no new scale-ups since 2022.
According to the recently published report by the Dutch EdTech Foundation (Stichting Dutch EdTech), the edtech sector has grown significantly over the past five years.
The estimated market value has increased from approximately $400M in 2020 to a projected $1.85B (€1.59B) by 2025, with 475 companies operating within the ecosystem.
Dutch EdTech Foundation: Supporting innovation in education
The Dutch EdTech Foundation is an independent organisation dedicated to the growth and development of the EdTech sector in the Netherlands.
The foundation supports innovation in education by using technology and brings together entrepreneurs, investors, schools, and governments to improve the EdTech community.
The report from Dutch EdTech Foundation uses data from 507 active EdTech companies in the Netherlands. This information comes from the Dutch EdTech Foundation’s database, member surveys, Dealroom, and other research.
Here are the key takeaways:
Nears $2B in market valuation
The Dutch EdTech sector has quadrupled in five years, reaching nearly $2B in market value. The number of companies grew by +20 per cent to over 500, and jobs expanded by +18 per cent to 13,400 FTEs.
“EdTech has entered a phase of sustainable expansion, no longer driven by short-term spikes, but evolving into a durable employer, innovation hub, and pillar of the knowledge economy,” says the report.
Yet innovations, especially in formal education, are struggling against persistent barriers in policy, procurement, and culture. As a result, broad adoption and scaling are faltering.
Home to densest EdTech ecosystems
The Netherlands hosts one of Europe’s densest EdTech ecosystems, with 475 active companies.
With 239 startups, the country continues to outperform larger nations in startup creation.
Yet, according to the official OECD/EU definition of a scale-up (≥10 employees at the start of the period and ≥20 per cent annual growth in FTE or revenue for three consecutive years). By mid-2025, no new EdTech scale-ups have emerged in the country, says the report.
Growth focused on Lifelong Learning
Half of all Dutch EdTech companies concentrate on Lifelong Learning, which includes most of the sector’s scaleups.
Lifelong Learning is the leading focus in Dutch EdTech, accounting for the largest share of companies at 51 per cent. It dominates every segment of company sizes, from micro-firms (114 with 1-10 FTE) to larger players (20 with more than 50 FTE). This focus area outpaces all others in both breadth and scale.
In contrast, the Higher Education segment has a greater number of mid-sized companies (29 with 11-50 FTE), indicating early signs of consolidation.
Meanwhile, Primary and Secondary Education remain highly fragmented, with small firms predominating. The Pre-K segment is minimal, representing just 3 per cent of the market share, says the report.
Investment climate under pressure
The Dutch funding landscape collapsed even more severely than the trends in the EU and globally, reveals the report.
The investment climate is also under pressure — average deal size fell from about $6M in 2021 to $1M in 2024, while the European average remains around $3M.
Large Series B and C investments have all but disappeared, making it difficult for promising companies to progress.
More than half of startups now cite system blockades, such as long adoption cycles and complex procurement, as their biggest challenge.
Grants and venture capital are popular funding sources
Grants and venture capital are the most popular funding sources, but different segments have different needs.
Early education (Pre-K12 and Primary) relies mostly on grants and venture capital, whereas secondary education has a wider range of funding options, including angel investors, crowdfunding, and corporate investments.
Higher Education shows a strong interest in venture capital and corporate funding, indicating that it is more developed.
Lifelong Learning is key in the Dutch EdTech scene, with a balanced mix of funding sources, such as accelerators, angel investors, venture capital, and grants, which reflects its maturity and growth ambitions.
7 out of 10 Dutch EdTech use AI
According to the report, 7 out of 10 Dutch EdTech companies now use AI.
The report says that AI is used in both customer-facing features and internal processes by companies.
Dutch EdTech companies apply AI for various purposes. Internally, they focus mainly on content generation (65 per cent) and improving operational efficiency (51 per cent), but also use AI for product design, analytics, and grading.
Externally, AI enhances content experiences (58 per cent), enables chatbots (52 per cent), and supports personalised learning (34 per cent).
Learn from frontrunners and accelerate scaling
The report also states that countries like Singapore, India, and China are investing a lot in digital learning, while the Netherlands may fall behind. This could negatively impact energy, healthcare, and jobs.
Consequently, the researchers urge educational institutions, companies and governments to actively learn from frontrunners that have scaled successfully, and to remove barriers to broader implementation.
Policymakers should create frameworks that accelerate scaling instead of hindering it.
“The solutions are ready, and we know they work,” says Jitske van Os, Director of the Dutch EdTech Foundation. “What’s needed now is leadership with the courage to invest—and a government that enables growth. Only then can we unlock EdTech’s potential and safeguard our knowledge position.”
