GSV Ventures’ Michael Moe on India’s entrepreneurial spirit and AI’s role in shaping the future of edtech

Michael Moe, Founder and CEO of GSV Ventures, vividly recalls his first visit to India nearly 15 years ago, a time when the entrepreneurial ecosystem was nowhere near what it is today.

“People want to be entrepreneurs… I don’t think that was really the mindset 15 years ago. And now, you see that shift in a very dramatic way,” he adds.

GSV Ventures, a venture capital firm specialising in the $7 trillion global education and workforce skills market, has been capitalising on India’s vibrant entrepreneurial landscape. Its portfolio includes investments in unicorns such as Eruditus, PhysicsWallah, LEAD, and Apna.

“We love entrepreneurs that are driven by making a dent in the universe,” Moe tells YourStory in a candid conversation, during the 2025 ASU+GSV & Emeritus Summit.

He explains that GSV Ventures is drawn to founders who are authentic—those driven by personal experiences, who saw an opportunity to do things better, or were inspired by someone to make a meaningful impact.

“All said and done, we are really not investing in companies. We are investing in people, and we are looking at people that we feel we can partner with and trust and grow together,” Moe adds.

He points out the VC firm has some “great portfolio companies” in India with some “great CEOs and founders”.

“We expect to continue to find more great companies in India. And it’s the success of companies like PhysicsWallah (PW) and LEAD that show the road,” he adds.

The US-based firm participated in a follow-on investment in PhysicsWallah (PW) as part of a $210 million Series B funding round, which closed late last year.

Next leg of funding 

The investment in PW marked a significant milestone amid a slowdown in India's edtech sector, where large deals have become uncommon. The industry is facing reduced investor interest and a drop in demand for online learning in the post-pandemic landscape.

Funding in the sector fell to under $700 million in 2024, a sharp decline from the nearly $5 billion peak in 2021.

The GSV chief explains the edtech slowdown with an example: In 2010, edtech venture funding reached $500 million—a significant milestone for the time. This growth continued at an average annual rate of 35% over time—though not every year—peaking at $21 billion in 2021.

“This again signaled, in many ways, that the edtech market was ahead of itself. Just like we see now with any transformative movement—whether it’s the internet, mobile computing, cloud computing, or cryptocurrency—there’s a pattern. Due to strong interest, fundamentals, and opportunity, the market often overheats,” Moe notes.

Referring to the slower funding phase as a “cooling off” period, he says, “This pause is natural, healthy, and something we almost always see in a sector before it moves to the next leg.” He adds, “We think it’s happening now.”

“We expect there to be a lot of capital that comes in to fund innovative ideas and great entrepreneurs…you can expect to see and hear more of GSV in this market,” Moe emphasises.

“We are very bullish on the Indian market. We think it's the most important edtech market in the world,” he states.

As of early 2023, the firm had committed around $90 million across more than 10 Indian startups. Looking ahead to 2025, it plans to make additional investments and explore new opportunities in India.

AI revolution

The firm is particularly optimistic about AI’s transformative role in education. In fact, its portfolio companies, PW and LEAD, are already harnessing AI to enhance learning experiences and drive better outcomes.

Moe highlights that the industry is at a point with artificial intelligence (AI) where edtech will not only improve access and reduce costs but also dramatically enhance the quality of learning.

“AI is like air. It’s invisible, it’s ubiquitous, and you need it to live,” he notes.

“What we see is not just the opportunity to create a more personalised learning experience, but one that is enhanced because it can provide what I need, when I need it, on a real-time basis. I call it just-in-time learning, as opposed to just-in-case learning,” Moe elaborates.

“What it does is allow anybody, anywhere, to have access to the greatest learning experience that they could imagine,” he adds.

According to the GSV chief, the firm intends to play a very prevalent role in this to back entrepreneurs. “It’s hard to imagine us being interested in a company that wasn’t using AI somehow.”