Edtech Investment Has Witnessed A Surge Amid Pandemic!
Amidst the pandemic outbreak, one of the most affected sectors has been the education sector. The routine, traditional in-classroom teaching has taken a backseat and suddenly, we all are staring at a gaping void, unaware and sometimes clueless as to what has hit us. Studies have been affected, examination schedules have been cancelled and there is an overall lack of backup options. Once again, we have turned towards technology looking for answers. Fortunately, tech has the answers that we are looking for. And it’s called EdTech: an amalgamation of technology and learning designed to reinvent the way we learn. Edtech’s efficacy is in the fact that it is helping us move from “What to Teach” towards “How to Teach”.
Online education isn’t something new. It has been experimenting with forms since the past decade : as an LMS like Moodle, in the form of explainer videos on Youtube, as MOOC’s like Coursera/Udemy/eDX.
While we learnt and understood that content is and will be king, the focus has now also shifted how engaging and intuitive the learning experience is. And this will redefine the future, making content and its delivery more engaging using tech. Use of AI to chart learning paths, AR/VR based demonstrations to explain concepts, gamification of the learning process, cognitive insight led learning: these are the areas in which the future unicorns of the edtech world are working. And pandemic has just accelerated this growth. As we move ahead in the decade, this sector needs to shake off its short-term-fix mentality and evolve to a wide-plan platform.
Here in this blog post, we are going to cover why edtech is a lucrative sector and what problems statements await to be resolved through Edtech.
Paving a smooth passage for learning
The education system across the world is burgeoning, as new job opportunities and innovative methods are making a move. This data indicates the sheer potential for new edtech startups. Now, both parents and students admire the effective learning solutions, offered through online mode, as it has bridged the distance, and has brought global trainers and educators to an accessible stage.
Innovation is grabbing the attention
Many new tech-trends are scaling higher and are helping different industries, are also giving a boost to edtech startups, by including a new set of innovative technologies. The medley of education and technology is nothing new to be discovered and existed far before our world was struck with COVID-19. However, the traditional approach of learning remained a focus and did not give enough room for edtech to rise to its potential until recently. The integration of technology such as VR, AR, AI, and Blockchain has witnessed a sharp increase in EdTech and it will continue to grow at a steady rate. Today, education is going through a tectonic shift in terms of how we consume concepts through the means of technology, and this has encouraged startups to look for growth opportunities in this specific sector.
Edtech is an investment destination for VC’s and Incubators/Accelerators
19 EdTech Unicorns on the global forefront have collectively raised over $13.7 billion and are now collectively valued at $64B+.
Alas, 90% of all startups flunk in the first few days of their conceptualization. This might set you in a chiller zone, and you would think to dump pursuing your startup idea, but thanks to Incubators and Accelerators, this fear does not swing around you anymore.
Incubators are quite valuable when it comes to helping edtech startups, as they can offer required training, consulting, and networking opportunities helping edtech startups flourish right from their early days.
On the other hand, accelerators, help in getting the seed funding along with training and consulting, and this can be done in exchange for a share in the startup. This is a great chance for ventures with no or little money to survive the odds.
EdTech is a good opportunity to launch your startup
It is a million-dollar question! No doubt, starting a new company or venture can seem uncertain, especially when you are doing it around the pandemic time, where nothing seems definite and comes with a hazy picture. But the great news is that the EdTech industry has a lot of opportunities for success and growth even during the pandemic time.
Since our world has received the blunt blow of pandemic, there has been a dramatic rise in the demand for education apps. With the closure of in-class learning, the need for effective e-learning solutions has gained relevance. Now schools are taking a membership for their students to learn additional skills on websites like Coursera, and this has made Coursera gaining $130 million additional funding from its investors recently. On the other hand, Udemy has raised new finance at $3 billion valuations. This data clearly indicates why investing in an edtech startup is a great opportunity, as it opens a flood gate of benefits for learners to get valuable education at a much affordable rate.
Food for thought
The relentless demand for edtech startups has given a boost to investment opportunities in this sector. So if you are ready to capture the right opportunity at the moment and want to make the most out of it, then yes! It is the perfect time to launch your edtech startup NOW.
