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How to build a strong EdTech market in Ukraine: three key challenges and solutions

The global education technology market is growing rapidly, with a projected value of $331.4 billion by 2028, representing a compound annual growth rate of 14%. North America, Europe, and the MENA region are leading the way, while Asia and Latin America are rapidly gaining momentum.

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How to build a strong EdTech market in Ukraine: three key challenges and solutions

The global education technology market is growing rapidly, with a projected value of $331.4 billion by 2028, representing a compound annual growth rate of 14%. North America, Europe, and the MENA region are leading the way, while Asia and Latin America are rapidly gaining momentum.

The Ukrainian EdTech market has significant potential, but its development is constrained by a number of systemic barriers. Despite the high demand for educational technologies, companies struggle to scale due to low visibility, limited funding, and weak interaction with the state. This makes it difficult to attract investment, enter the international market, and makes the sector less attractive for entrepreneurs and startups.

A study by Techosystem and partners, conducted as part of the Innovation Ecosystem project in December 2024, shows that the majority of Ukrainian EdTech companies are small startups: more than two-thirds have up to 10 employees, and 70% work remotely. The majority are in the growth stage (56%) or are early stage startups (31%), which complicates their development and scaling.

At the same time, Ukrainian EdTech is proving its flexibility and innovation, actively implementing artificial intelligence, automation, and personalized learning. But without overcoming structural barriers, the market will not be able to realize its full potential.

Challenge 1: Small Education Brand and EdTech

The demand for educational technologies is high, but Ukrainian companies are still poorly represented in the international market, which limits their ability to scale. Although education is recognized as a strategic direction, Ukrainian EdTech remains invisible, and its potential for the economy and society is still underestimated.

Raising awareness requires a comprehensive approach. The EdTech cluster, created by Techosystem as part of the cluster development program, is already working on forming a communication strategy that includes creating partnerships with the media, attracting influencers, promoting EdTech at international conferences. It is also important to support the educational community, as they are the carriers of change.

Despite the active development of the technology sector, education lacks a systematic approach to popularizing the industry. A key step will be to involve the state in promoting education as a priority for the country’s development.

Challenge 2: Lack of transparency in funding

For many Ukrainian EdTech companies, the main obstacle is not ideas, but funds to implement them. Grants and government funds are distributed through complex bureaucratic procedures, which makes access difficult for new companies.

One possible solution is to create a public system for distributing funds, similar to the Prozorro platform. Open information would allow investors and government agencies to interact more effectively. Additionally, mechanisms for independent monitoring of funding, the involvement of international observers, and the implementation of blockchain solutions for transaction control could be introduced.

The Techosystem EdTech cluster is considering creating an analytical platform that will help assess the impact of investments in educational technology.

Challenge 3: Lack of public-private partnership

However, even with funding, government mechanisms remain complex and unfriendly to startups, making it difficult for them to integrate into the education system. As a result, another key problem arises: weak interaction between EdTech companies and the authorities.

One step towards changing the situation is to develop a memorandum of cooperation between government agencies and the EdTech community. This should become the basis for creating joint funding mechanisms and developing strategic educational policies.

Veronika Senkina, founder of the educational platform The Instapreneurs and a participant in the EdTech cluster facilitation session held as part of the Innovation Ecosystem project, comments: «To strengthen positions in the EdTech industry, synchronization between the state and business is necessary, as well as an agreement on non-competition between the private and public sectors. If the state ignores solutions that already exist in business and creates similar ones from scratch, this is not about unity. Moreover, it is inefficient. We also need greater transparency in the distribution of finances that come into the country and are directed to educational projects. The public must understand how the funds raised are used.»

Another important direction is the introduction of regular meetings with government representatives, which will help to respond to market challenges in a timely manner. Business can not only receive support from the state, but also independently help in creating modern educational hubs and attracting international investors to the education sector.

What role does the Techosystem EdTech cluster play?

The Ukrainian EdTech market faces numerous challenges that hinder its development. Despite the demand for educational technologies, companies lack funding, opportunities for scaling, and effective interaction with the state. The war has only exacerbated these problems: businesses have to adapt to an unstable economy, loss of personnel, and increased competition with international players.

To overcome these barriers, it is important not only to outline the problems, but also to find ways to solve them. The Techosystem EdTech cluster unites companies working to strengthen the Ukrainian educational technology industry.

The cluster has only just begun its work, but key areas have already been identified. These include finding sources of financing, developing the international presence of Ukrainian companies, and strengthening cooperation with the public sector. Another important task is to unite market participants: joint initiatives, partnerships, and exchange of experience can become the basis for long-term growth.

Ukrainian EdTech has the potential to grow and influence the development of education, but its implementation depends on strategic changes, effective interaction between business and the state, and the willingness of companies to work together to form a strong, innovative industry.

Techosystem is a public association of participants in the Ukrainian technological ecosystem for startups, scaleups, and investors.

The cluster operates within the Techosystem union, and you can join by submitting an application for membership via the link .

The initiative is part of the cluster development program, created with the support of the Ministry of Digital Transformation of Ukraine within the framework of the Good Governance Fund project «Innovation Ecosystem», funded by UK International Development from the UK government. The project implementers are Abt Global and KPMG in Ukraine in partnership with Techosystem.

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