21/04/2026
EDTECH & HEALTHTECH: A MISPRICED OPPORTUNITY; A VALUE GALACTICA THESIS
Capital is not scarce.
Conviction is.
Over the past three years, global capital has quietly retreated from two of the most foundational sectors of any economy education and healthcare.
EdTech funding has fallen sharply from its 2021 peak. HealthTech has followed a similar path, with capital becoming more selective and concentrated in narrow verticals.
At first glance, this looks rational.
On deeper inspection, it looks like a mispricing.
Today’s capital markets favor speed, faster product cycles, quicker monetization, and near-term profitability. This explains the shift toward AI, fintech, and scalable digital infrastructure.
But education and healthcare do not operate on startup timelines.
They operate within institutions, schools, hospitals, governments, where:
Adoption takes time
Integration is complex
Outcomes are long-term
These are not weak sectors.
They are deep systems with embedded inertia.
As Peter Thiel has often suggested, capital flows most efficiently where technology can bypass legacy constraints and unlock rapid transformation. By that logic, sectors like education and healthcare appear less attractive, constrained, regulated, and slow to change.
There is truth in this view.
But there is also a blind spot.
Because the largest inefficiencies in the global economy sit precisely in these systems.
Investors like Marc Andreessen have long pointed out that healthcare remains one of the most unresolved challenges in modern economies. Education, similarly, defines the ceiling of human capital, productivity, and long-term growth.
At Value Galactica, we see something different.
Where others see friction, we see structural alpha.
The current pullback is not a rejection of EdTech and HealthTech. It is a rejection of:
Surface-level digitization
Engagement models without measurable outcomes
Venture-backed growth without sustainable economics
Capital is no longer rewarding participation.
It is demanding transformation.
The next generation of companies in these sectors will not look like traditional startups.
They will not sit on top of systems, they will integrate into them.
They will not chase users, they will deliver outcomes.
They will not rely on hype, they will build infrastructure.
This is where durable value is created.
Nowhere is this more evident than in Africa and other growth markets.
We are looking at:
Under-capacitated healthcare systems
Uneven access to quality education
A rapidly growing, youthful population
This is not just a market gap.
It is a development imperative.
And yet, capital remains hesitant.
If venture capital is truly about shaping the future, then education and healthcare cannot remain underfunded.
These sectors define:
Productivity
Longevity
Economic mobility
The question is not whether they deserve capital.
The question is whether capital has the patience, and conviction, to build within systems that require depth, resilience, and long-term thinking.
At Value Galactica, we do not view this moment as a downturn.
We view it as a filtering phase.
And in every cycle, the most compelling opportunities emerge where:
Complexity is highest
Capital is most cautious
Impact is most profound
Capital will return.
The only question is, who positions early, and who arrives late.