Why EdTech Investors Should Look to Homeschooling for the Next Big Growth Opportunity

As education technology continues to boom, much of the investment still focuses on solutions for traditional schools. While these institutions are essential in educating millions of children, they often move too slowly to keep up with modern needs. Bureaucracy, rigid systems, and limited flexibility can make it difficult for even the best EdTech solutions to gain traction. Homeschooling, on the other hand, is growing rapidly and is ripe for innovation - a new frontier for investors eager to help shape the future of education.

Traditional Systems Struggle to Keep Up

Schools have long struggled to adopt technology swiftly and effectively. From budget constraints to regulatory red tape, public school systems face major hurdles when embracing change. As a result, many great EdTech products get stalled in a slow-moving pipeline.

Meanwhile, families frustrated with outdated curriculums, overcrowded classrooms, and a lack of personalized options are seeking alternatives. Homeschooling offers a flexible solution, and it’s here that some of the most significant opportunities for investment lie.

Homeschooling is on the Rise - Here’s Why

In recent years, homeschooling has grown from a niche option to a mainstream choice, and there are significant numbers to back this up. According to the U.S. Census Bureau’s Household Pulse Survey, 6% of all school-aged children are homeschooled as of 2023, which has more than doubled since 2019. The pandemic may have accelerated this shift, but the trend has continued as families look for greater control over their children’s education.

Why do we see this trend continuing to grow in the future? Gen Z parents. A recent survey found that 59% of Gen Z parents plan to engage in some form of home education. This generation’s dissatisfaction with traditional schooling and openness to personalized education models and technology-driven solutions have laid the foundation for a broader adoption of homeschooling.

A Landscape Ready for Disruption

The pandemic wasn’t just a temporary change but a turning point. When schools closed, families were forced to find new ways to educate their children, and many found that homeschooling offered benefits that traditional systems couldn’t match. Parents saw firsthand how their children learned, what they struggled with, and what resources were missing. This insight, combined with increased flexibility and a sense of safety, has sustained interest in homeschooling and other alternative education paths.

At the same time, technology is evolving to make homeschooling more manageable and more accessible than ever. AI-driven tools, personalized learning platforms, and virtual tutoring services are allowing families to tailor their children’s education in ways that were unthinkable just a few years ago. This tech-driven revolution in homeschooling is an opportunity for investors to get in on the ground floor.

Homeschooling is Here to Stay

We’ve witnessed the remarkable growth and untapped potential of the homeschooling space. What was once considered a niche choice has evolved into a fundamental shift in how families approach education. More parents are taking control of their children’s learning, driven by a desire for flexibility, customization, and meaningful outcomes.

For EdTech investors, this represents a unique opportunity. Homeschooling is a rapidly expanding market with increasing demand for better tools, reliable resources, and effective support. Families are turning to technology to navigate these challenges, and the possibilities for innovation are immense, from AI-driven curriculum recommendations to tools for managing state compliance and fostering virtual communities.

At SmartPath, we’re addressing these needs by building tools to make homeschooling simpler and more accessible for families. Our platform connects parents with personalized curriculum provider recommendations, and we plan to build our community of expert advisors to help remove the guesswork and streamline the homeschooling journey. We’re using technology to solve real problems for families, empowering them to provide quality education with ease and confidence.

Why Homeschooling is EdTech’s Next Big Opportunity

The global education technology market, valued at $142.37 billion in 2023, is projected to grow at a 13.4% Compound annual growth rate through 2030, driven by startup innovation and venture investment. With over 65,000 EdTech companies worldwide, solutions in real-time progress tracking, virtual classrooms, and AI-powered personalized learning are expanding to address the needs of homeschoolers.

Today’s homeschooling market is primed for innovation. Families need better tools, trustworthy resources, and scalable support to succeed. The continued expansion of ESAs and proposed tax credits for homeschooling underscores the increasing recognition of its value and growing influence on education policy. Based on consumer demand and technological advancement, education is in a period of rapid transition. In 10 years, homeschooling could be the education of choice for half of K-12, so there’s no better time to engage with this movement.

The future of education is shifting. Are you ready to be part of this transformation? Let’s build a better future for families together. Let’s chat on LinkedIn. And if you want to stay up to date with our product launch, sign up for the early access waitlist here.