27 Reasons why Ed Tech is the best investment
Why Ed Tech? Why now?
- There has not yet been the “Youtube” of Ed Tech yet.
- Investment in Education Technology has skyrocketed with businesses and Entrepreneurs
- Mobile is everywhere and education on Mobile allows you to reach people quickly… and simultaneously
- Technology has taken a previously fragmented system and allowed us to link learning to students and teachers faster and more seamlessly
- We can collaborate now with social media
- Adaptive Learning Technologies make learning faster and more relevant for the student (Cognii, Knewton)
- Companies that succeed over a long period of time have a very strong focus. It’s easy to mask quality over the short term, but long term quality is essential for longevity. There is a dearth of quality digital course design
- Companies want better education internally, helping to find and retain talent
- Students want better education, more aligned with relevant jobs
- I.T. jobs require constant education to be able to be fast to market and satisfy customer and employer needs
- Non-skill based degrees will fade in importance over the long term
- International Student flows for advanced education are increasing significantly, ed tech allows for meeting the needs of these students
- International parents are willing to pay a substantial amount of money on education and supplementary education. They are willing to pay 15% and above of their annual take home pay on the education of their children.
- Tutoring is just something that overseas students ‘do’. It is standard.
- The upper end of the U.S. Bell Curve is willing to pay a very large amount toward SAT and test preparation.
- Education is the single most important thing in moving people and companies ahead
- The number of educational technology companies is broadening
- The value chain of the educational space is moving more toward a digital environment
- More companies are making profits in this space and are faster to market than in the past
- Outside companies are now involved with providing and creating content instead of having the content fully created my educators
- Over 1/3 of internet searches in China are education based
- MOOCs are accelerating their development and reach (Kahn, Coursera, Udemy)
- New online learning platforms are proliferating
- By and large, most every major VC has some vet in the Ed Tech space
- Financial sponsors for Educations Technology continue to grow
- Many Ed Tech companies have “gone public” in the last few years
- Approximately 45 Ed Tech companies are worth over 1 billion dollars
What are some opportunities / needs here?
- More and better adaptive learning technologies
- Aligning education of students with current and relevant jobs
- Be able to demonstrate skills and not just knowledge
- Content isn’t immediately translated to other languages, quality is often compromised. Content developers are needed to massage this content for quality.
- The retirement community has money and wants to learn
- It is still unknown what the “right way” is to create optimal learning
- OER is rising in importance (it’s also more prevalent outside the U.S.)
- Content vs. Technology cooperation and integration
What are investors looking for?
- growth at higher than market rate
- cash flow
- a return other investment (obviously)
- strength in distrbution
- content portfolio
- teachers believe in your business
- maintaining your reputation
- sticky business model (money making)
- Competitive differentiation with your closest peer set
- how are you running your sales force
- What is your competitive advantage content and sales wise
- are you ready for the future? will you be ready for how the market evolves?
What is one thing I can do to move my business forward?
- Be laser focused on serving your customers