The test preparation industry in the US focuses on offering various educational resources to help students excel in exams. This sector includes companies that provide online courses, tutoring services, and test-taking strategies for standardized assessments like the SAT, ACT, and GRE. As technology shapes learning, many businesses are incorporating AI and interactive methods to tailor learning experiences to individual needs. In recent years, there’s been a surge in personalized learning platforms, making education more accessible. With competition increasing, innovation in testing methods and online solutions will play a key role in shaping the industry’s future.


The landscape of investment in the test preparation industry features a mix of venture capital and corporate investors, primarily based in high-tech hubs like San Francisco and New York. Founded between 1938 and 2016, these firms range in size, with many fluctuating between 10 to over 10,000 employees. Deal activity in 2024 varied widely, with some firms like Y Combinator participating in over 800 investments, indicating strong interest in ed-tech ventures. Investors are drawn by opportunities that technology brings to education, particularly in the ever-evolving test preparation ecosystem.


Top 17 Test Preparation Investors in the US


1. Y Combinator

  • Website: ycombinator.com
  • Type: Venture Capital
  • Headquarters: San Francisco, California, United States (USA)
  • Founded year: 2005
  • Headcount: 51-200
  • Number of deals in 2024: 802
  • LinkedIn: y-combinator

Y Combinator is a prominent startup accelerator and venture capital firm based in San Francisco, California, founded in 2005. It provides funding and mentorship to early-stage technology companies, helping entrepreneurs launch and grow their businesses through structured programs, resources like the Startup School, and co-founder matching services. Y Combinator has successfully launched over 4,000 startups, making it a key player in the technology startup ecosystem. Among its notable investments in the education sector, Y Combinator has backed EduRev, which focuses on providing educational resources and test preparation materials, raising funds in multiple rounds including a seed round in 2022 and pre-seed rounds in 2020 and 2019. Additionally, Y Combinator invested in Pahamify, an Indonesian education tech company, which aims to enhance learning materials for junior high students. These investments highlight Y Combinator's engagement in the educational technology space, particularly in areas related to test preparation and learning enhancement.


2. 500 Global

  • Website: 500.co
  • Type: Venture Capital
  • Headquarters: San Francisco, California, United States (USA)
  • Founded year: 2010
  • Headcount: 201-500
  • Number of deals in 2024: 98
  • LinkedIn: 500-startups

500 Global is a venture capital firm and startup accelerator based in San Francisco, California, founded in 2010. The firm specializes in investing in early-stage technology companies, providing funding, mentorship, and resources to help founders scale their businesses. With a global focus, 500 Global has made numerous investments across various sectors, including education technology. Notably, they have invested in Descomplica, which raised $5 million in Series B financing to enhance its technological capabilities and expand its educational offerings, and $2 million to $3 million in Series A financing to grow its video library and staff. Additionally, they participated in the Pre-series A funding of Synkers, an edtech app that connects students with tutors, raising $1.8 million. These investments highlight 500 Global's commitment to supporting innovative educational solutions, particularly in the test preparation space.


3. Goodwater Capital

  • Website: goodwatercap.com
  • Type: Venture Capital
  • Headquarters: Burlingame, California, United States (USA)
  • Founded year: 2014
  • Headcount: 51-200
  • Number of deals in 2024: 41
  • LinkedIn: goodwater-capital

Goodwater Capital is a venture capital firm based in Burlingame, California, founded in 2014. The firm specializes in consumer technology and supports seed-stage entrepreneurs by providing investment, resources, and a community to help them grow. Goodwater Capital has a diverse investment portfolio that includes various sectors such as healthcare and financial services, but they have also made significant investments in the education sector. Notably, they participated in funding rounds for companies like Achievable, which focuses on education, and Shikho, which raised $900,000 in a seed round. Additionally, they invested in Marathon Education, which raised $5.1 million in a seed round. These transactions highlight Goodwater's commitment to enhancing educational access and technology solutions, particularly in the test preparation space.


4. GSV Ventures

  • Website: gsv.ventures
  • Type: Venture Capital
  • Headquarters: San Francisco, California, United States (USA)
  • Founded year: 2016
  • Headcount: 11-50
  • Number of deals in 2024: 9
  • LinkedIn: gsvventures

GSV Ventures is a venture capital firm based in San Francisco, California, founded in 2016. The firm specializes in investing in education technology companies, providing insights and analysis on the digital learning landscape. They are known for hosting the ASU+GSV Summit, which connects leaders in education technology. GSV Ventures has been involved in several notable transactions, including a significant investment in Physics Wallah, which raised $175 million in a Series B round in September 2024, and $102 million in a Series A round in June 2022. Physics Wallah is recognized for its online test preparation services, making GSV Ventures a relevant player in the test preparation industry. Additionally, GSV Ventures participated in the Series A funding round for Abwaab, a Jordan-based EdTech platform, which raised $20 million in November 2021. This further demonstrates their commitment to supporting innovative educational solutions that may include test preparation.


5. Tiger Global

  • Website: tigerglobal.com
  • Type: Venture Capital
  • Headquarters: New York, New York, United States (USA)
  • Founded year: 2001
  • Headcount: 51-200
  • Number of deals in 2024: 25
  • LinkedIn: tiger-global-management

Tiger Global Management, LLC is a New York-based investment firm specializing in public and private equity investments, managing approximately $50 billion. Founded in 2001, the firm focuses on innovative companies leveraging technology across various sectors. Notably, Tiger Global has made substantial investments in the education technology space, particularly in test preparation. They invested $500 million in BYJU'S in September 2020 and an additional $200 million in January 2020, both of which are significant players in the online learning and test preparation market. Furthermore, their investment in Unacademy, which raised $440 million in August 2021, highlights their commitment to supporting companies that provide educational resources and test preparation services. These transactions illustrate Tiger Global's active role in the education sector, particularly in areas related to test preparation.


6. Learn

  • Website: learn.vc
  • Type: Venture Capital
  • Headquarters: Austin, Texas, United States (USA)
  • Founded year: 2009
  • Headcount: 11-50
  • Number of deals in 2024: 4
  • LinkedIn: learn-capital

Learn is a venture capital firm based in Austin, Texas, founded in 2009. They specialize in providing capital and support to entrepreneurs in human-centric sectors, particularly technology and education. Learn has been involved in several significant transactions in the education space, including a Series C investment in Varsity Tutors, an edtech company focused on tutoring and test preparation, which raised $50 million in 2018. They also participated in multiple funding rounds for Shikho, a Bangladesh-based edtech startup, which raised funds in seed and pre-seed rounds to enhance educational access and quality. Additionally, Learn invested in Amplify Education, a publisher of next-generation curriculum and assessment programs, which focuses on K-12 education, including math education. These transactions highlight Learn's commitment to fostering innovative educational solutions that can impact test preparation and overall learning outcomes.


7. Kaplan

  • Website: kaplan.com
  • Type: Corporate
  • Headquarters: Fort Lauderdale, Florida, United States (USA)
  • Founded year: 1938
  • Headcount: 10001+
  • LinkedIn: kaplan

Kaplan, Inc. is a prominent educational services company based in Fort Lauderdale, Florida, founded in 1938. With a workforce of over 10,000 employees, Kaplan provides a diverse range of educational services, including test preparation, professional licensure training, and corporate learning solutions. The company has made significant acquisitions to bolster its position in the test preparation market, including the acquisition of Barron's Educational Series in 2018, which enhances their test prep resources. In 2013, Kaplan acquired Grockit, a social learning platform, to improve student outcomes through innovative learning methods. Additionally, Kaplan acquired Professional Publications, Inc. (PPI) in 2018, a leading publisher of professional licensing exam review materials in engineering, and the healthcare test preparation assets from Becker Professional Education in 2019. These strategic moves demonstrate Kaplan's commitment to providing comprehensive test preparation solutions for students and professionals alike.


8. Owl Ventures

  • Website: owlvc.com
  • Type: Venture Capital
  • Headquarters: San Francisco, California, United States (USA)
  • Founded year: 2014
  • Headcount: 11-50
  • Number of deals in 2024: 7
  • LinkedIn: owl-ventures-lp

Owl Ventures is a venture capital firm based in San Francisco, California, founded in 2014. The firm specializes in education technology, investing in innovative EdTech startups to provide funding, strategic guidance, and mentorship. Their portfolio includes notable companies such as BYJU'S, which raised significant funding rounds in 2019 and 2020, focusing on educational content and test preparation. Additionally, they invested in Fiveable, which raised $10 million in a Series A round in 2021, offering resources for students preparing for exams. Another significant investment was in Leap Scholar, which raised $75 million in a Series D funding round in 2022, further emphasizing Owl Ventures' commitment to enhancing educational outcomes through technology. Overall, Owl Ventures is dedicated to supporting companies that improve learning experiences, including those in the test preparation space.


9. Reach Capital

  • Website: reachcapital.com
  • Type: Venture Capital
  • Headquarters: San Francisco, California, United States (USA)
  • Founded year: 2015
  • Headcount: 11-50
  • Number of deals in 2024: 17
  • LinkedIn: reach-capital

Reach Capital is a venture capital firm based in San Francisco, California, founded in 2015. The firm specializes in investing in early-stage startups within the learning, health, and work sectors. They provide funding, resources, and support to entrepreneurs, helping them develop innovative solutions to significant challenges. Notably, Reach Capital has made several investments in the education technology space, including Curipod, which raised $4.6 million to assist teachers in creating interactive lessons, and BookNook, a literacy app that has received multiple rounds of funding to enhance its offerings. Their portfolio reflects a commitment to empowering educational initiatives, making them a key player in the test preparation landscape.


10. Sosv

  • Website: sosv.com
  • Type: Venture Capital
  • Headquarters: United States (USA)
  • Founded year: 1995
  • Headcount: 51-200
  • Number of deals in 2024: 170
  • LinkedIn: sosv

SOSV is a venture capital firm founded in 1995, specializing in funding and supporting deep tech startups through its development programs. With a global reach, SOSV connects innovative companies with investors and provides resources to help startups grow and succeed. Among their notable investments, they have backed Nearpeer.org, which focuses on educational support, and Vidyakul, which raised $500,000 in a seed round to enhance learning experiences. These transactions highlight SOSV's engagement in the education sector, particularly in areas relevant to test preparation, showcasing their commitment to fostering startups that contribute to learning and educational advancement.


11. SV Angel

  • Website: svangel.com
  • Type: Venture Capital
  • Headquarters: San Francisco, California, United States (USA)
  • Founded year: 2009
  • Headcount: 1-10
  • Number of deals in 2024: 44
  • LinkedIn: sv-angel

SV Angel is a venture capital firm based in San Francisco, California, founded in 2009. The firm specializes in investing in early-stage and growth-stage technology companies, providing not only financial backing but also strategic advice and access to a network of industry experts. SV Angel's mission is to foster innovation and assist startups in navigating business challenges. Notably, they have invested in Tutorspree, a tutoring platform that raised funding in 2011 and 2013, indicating their interest in educational services. Additionally, SV Angel has participated in funding rounds for Outschool, a marketplace for live online classes for K-12 students, which has raised significant capital in various rounds, including seed, Series B, and Series D funding. These transactions highlight SV Angel's commitment to supporting educational technology and services, particularly those that can enhance learning and test preparation.


12. Chan Zuckerberg Initiative


The Chan Zuckerberg Initiative (CZI) is a not-for-profit organization founded in 2015, based in Redwood City, California. It focuses on philanthropy and social impact, aiming to address societal challenges through grants and technology solutions in education, health, and community development. CZI collaborates with various stakeholders to implement effective programs and support innovative projects that enhance community well-being. Notably, CZI has made significant investments in the education sector, including funding for Descomplica, a startup that offers preparatory courses for entrance exams in Brazil, and Varsity Tutors, an edtech company providing tutoring services. Additionally, CZI co-led a funding round for BYJU'S, a major player in the global education market, which also includes test preparation services. These transactions highlight CZI's active role in supporting educational initiatives, particularly those related to test preparation.


13. Tcv

  • Website: tcv.com
  • Type: Venture Capital
  • Headquarters: Menlo Park, California, United States (USA)
  • Founded year: 1995
  • Headcount: 51-200
  • Number of deals in 2024: 10
  • LinkedIn: technology-crossover-ventures

TCM, Inc. (Technology Crossover Ventures) is an investment firm founded in 1995, based in Menlo Park, California. Tcv specializes in growth equity investments in technology companies, partnering with mission-driven teams to provide capital and strategic guidance to help businesses scale and achieve market leadership. Notably, Tcv has invested in several prominent education technology companies, including Varsity Tutors, which raised $50 million in a Series C round in 2018 and $50 million in a Series B round in 2015. Additionally, Tcv has invested in K12, a company focused on online education, and Open English, which raised $65 million in a Series D round in 2013. These transactions highlight Tcv's active role in the education sector, particularly in companies that contribute to test preparation and online learning.


14. NewSchools Venture Fund


NewSchools Venture Fund is a not-for-profit organization founded in 1998, based in Oakland, California, focused on improving education through funding and support for innovative educational ventures. They collaborate with educators, school districts, and technology developers to enhance learning outcomes and address challenges in the education sector. Notably, they have invested in Grockit, a social learning company, and Tutored by Teachers, an online tutoring platform that raised over $10 million in Series A funding. These transactions highlight their commitment to supporting educational initiatives that can include test preparation services, making them a relevant player in this space.


15. FJ Labs

  • Website: fjlabs.com
  • Type: Venture Capital
  • Headquarters: New York, New York, United States (USA)
  • Founded year: 2015
  • Headcount: 11-50
  • Number of deals in 2024: 169
  • LinkedIn: fj-labs

FJ Labs is a venture capital firm based in New York, founded in 2015, that specializes in investing in marketplace and network effect businesses. They provide capital and strategic guidance to entrepreneurs across various industries, including e-commerce and logistics. With over 1,000 companies in their extensive portfolio, many of which have achieved unicorn status, FJ Labs has demonstrated a strong commitment to supporting innovative startups. Notably, they have invested in Clevai, an online teaching platform that raised significant funding to enhance its live streaming infrastructure and AI-based learning experiences. Additionally, their investment in Zookal, which offers educational resources, highlights their engagement in the education sector. These transactions illustrate FJ Labs' interest in companies that contribute to the educational landscape, making them a relevant player in the test preparation industry.


16. Meta

  • Website: meta.com
  • Type: Corporate
  • Headquarters: Menlo Park, California, United States (USA)
  • Headcount: 10001+
  • Number of deals in 2024: 3
  • LinkedIn: meta

Meta Platforms, Inc. is a technology company based in Menlo Park, California, known for its social media platforms like Facebook and Instagram, as well as its virtual reality products such as Oculus. The company primarily generates revenue through advertising but has also ventured into the education sector through strategic investments. Notably, Meta has invested in Tuteria, which raised $50,000 in grants aimed at connecting learners with tutors, and Unacademy, which raised significant funding (including $150 million in Series F) to enhance its online learning platform that caters to students preparing for various competitive exams. Additionally, Meta has invested in Gradely.ng, which focuses on educational technology. These transactions highlight Meta's involvement in the education and test preparation space, showcasing its commitment to supporting innovative learning solutions.


17. General Atlantic

  • Website: generalatlantic.com
  • Type: Private Equity
  • Headquarters: New York, New York, United States (USA)
  • Founded year: 1980
  • Headcount: 501-1000
  • Number of deals in 2024: 32
  • LinkedIn: general-atlantic

General Atlantic is a private equity investment firm based in New York, specializing in growth equity. Founded in 1980, the firm provides capital and strategic support to entrepreneurs and growth companies across various sectors, including technology and healthcare. Notably, General Atlantic has made substantial investments in the ed-tech space, particularly in companies like BYJU'S, which raised significant funding rounds of $500 million and $540 million in 2020 and 2018, respectively. Additionally, they invested in Unacademy, which raised $440 million in 2021. These transactions highlight General Atlantic's commitment to enhancing the growth trajectories of companies that are pivotal in the test preparation industry.



Test Preparation Insights: Key Investors in the US


InvestorHeadquarterSizeFoundedDeals 2024
Y CombinatorSan Francisco, California, United States (USA)51-2002005802
500 GlobalSan Francisco, California, United States (USA)201-500201098
Goodwater CapitalBurlingame, California, United States (USA)51-200201441
GSV VenturesSan Francisco, California, United States (USA)11-5020169
Tiger GlobalNew York, New York, United States (USA)51-200200125
LearnAustin, Texas, United States (USA)11-5020094
KaplanFort Lauderdale, Florida, United States (USA)10001+19380
Owl VenturesSan Francisco, California, United States (USA)11-5020147
Reach CapitalSan Francisco, California, United States (USA)11-50201517
SosvUnited States (USA)51-2001995170
SV AngelSan Francisco, California, United States (USA)1-10200944
Chan Zuckerberg InitiativeRedwood City, California, United States (USA)201-50020154
TcvMenlo Park, California, United States (USA)51-200199510
NewSchools Venture FundOakland, California, United States (USA)11-5019980
FJ LabsNew York, New York, United States (USA)11-502015169
MetaMenlo Park, California, United States (USA)10001+3
General AtlanticNew York, New York, United States (USA)501-1000198032


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