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Breaking Into the US EdTech Market: Strategies, Challenges, And Real-World Insights
5 December 2025
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Breaking Into the US EdTech Market: Strategies, Challenges, And Real-World Insights
Summary:
- Success in the US EdTech market requires deep local understanding, humility, and prioritizing solutions that genuinely help educators and students.
- International founders face tough fundraising conditions and must focus on sustainable revenue, strategic government funding, and building US-based teams to navigate operational and cultural challenges.
- Effective market entry depends on direct sales expertise, investing in US-specific efficacy research, and building foundational relationships—true partnerships and local data are essential for long-term success.
Expanding an EdTech business into the US market is a formidable challenge, especially for international founders. Shaped by complex procurement processes, fierce competition, and evolving expectations from educators and investors, the landscape is difficult.
At QS Reimagine Education 2025, we welcomed US experts to give advice, real-world examples, and actionable strategies on how to break into the US education market.
Speakers:
- (Moderator) Meg Hamel, Vice President, Education, QS
- Rita Ferrandino, Founding Partner, Arc Capital Development
- Doug Lynch, Senior Fellow, USC Rossier School of Education
Understanding The US Education Market
The US education sector is highly decentralized and politicized, particularly in K-12. As Doug Lynch noted, “You need 15 people to say yes, and if any of them say no, you’re dead, right?” Success hinges on humility and a deep understanding of local challenges. Rather than pitching products, founders should “start by listening, asking questions and understanding, and then use these folks who can be your interpreters and can de-risk it for you,” Lynch said.
Educators are inundated with technology. Lynch told a story of one teacher’s computer that had 140 different applications. The priority is not another app, but solutions that genuinely help students learn.
Fundraising Realities For International Founders
Accessing US capital is possible, but the environment is tough. There are three main ways to capitalize a business: revenue, capital markets, and grants/philanthropy. With finite time and effort, “Put it into revenue,” advised Ferrandino, emphasizing the importance of sustainable growth.
Recent years have seen a “COVID bubble” in EdTech investment, with “a bunch of stupid money entered into the edtech market.” Many investors, unfamiliar with the sector’s slower returns, exited after disappointing results. The market has since contracted, with global EdTech investment dropping from $4.4 billion pre-COVID to $2.4 billion, and investors now “hesitate about taking risk”.
Team Strategy And Market Entry
Relocating founders and building a US-based team is critical. “The few times I’ve seen it work is when the founders relocate and build a US team together,” shared Ferrandino. Attempts to market from abroad or rely solely on home-country teams often fail.
However, experiences vary. One entrepreneur in the audience found that him moving to the US while his team stayed in the UK. Embracing the time difference actually benefited company culture, allowing for “deep work time” and better alignment.
Finances are key to breaking the US market from overseas. “If you're going to enter the US market,” Ferrandino added, “you need to have enough money to properly enter the US market. That is going to allow you the time to be able to develop it, and you're going to reap the rewards if you put that foundational work in place.”
Partnerships And Sales Strategy
True partnerships can be effective, but relying on agents or distributors rarely works. “It is a founder’s responsibility to figure out how to sell the product. Many founders just try and skip the step of learning how to sell the product and want to go right to an agent or a distributor. And that very rarely works,” Ferrandino said.
The hardest part is not building the product, but selling it: “The selling part is much harder than the building part”.
Research And Efficacy
US buyers demand local efficacy data. International research often lacks relevance, so companies must invest in US-based studies. Funding sources include federal grants and foundations, but the process requires time and evidence.
Conclusion
Entering the US market is “not for the faint of heart.” Success requires adequate funding, patience, and a willingness to build foundational relationships and data. International EdTech founders can succeed in the US by listening to local needs, securing strategic funding, relocating key team members, and prioritizing sales and efficacy research. The journey is challenging, but with the right approach, the rewards can be substantial.
