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Before the pandemic that arose as a bc data india package result of COVID-19, less than 3% of global spending on education was allocated to technology . Today, the reality has had to change drastically, as most schools and educational institutions have had to continue working online . Learn more about the Edtech Market and the rise of online learning.
And although educational institutions have been considerably affected by budget cuts in the face of the new normal, other companies have taken advantage of the change: new investors are betting on companies that offer online courses and support services for students .
This new market is known as the Edtech Market and offers services through online tutoring and in apps . Its main audience and consumers? Parents . Experts also assure that this trend will not only continue during the pandemic, on the contrary, it is here to stay!
Online education during coronavirus
Education and coronavirus
We already know that the pandemic has strongly affected all sectors of the economy, however, few have been as affected as the education sector. Around the world, university campuses, schools, institutes, among others, have been forced to close and both children and adults have had to isolate themselves at home trying to continue learning in the midst of the crisis.
This is how we are faced with another reality: most students, teachers, and institutions are new or relatively inexperienced with remote education. Before the pandemic, only 15% of college students in the United States were enrolled in online courses, and suddenly, now everyone has had to adapt to this new methodology.
Some do not have the equipment or internet connection needed to learn from home, while many teachers are struggling with digital systems they do not understand. Schools and universities have been scrambling to get remote learning tools in place and this process has not necessarily gone as expected.
This context has translated into a goldmine of opportunities for Edtech entrepreneurs, who offer solid solutions to improve remote education . At least that is how investors see it, who have been providing large amounts of money to companies that have dedicated themselves to this sector.
Believe it or not, Edtech is not a new market . US investment in Edtech companies hit a five-year high in 2019, attracting at least $1.66 billion across 105 deals , according to data collected by EdSurge.
However, despite these figures, compared to other markets, digital tools for education have not received good financial support. Data from HolonIQ shows that less than 3% of global spending on education is dedicated to technology. There is definitely a lot of potential in the Edtech Market right now, so here's how you can take advantage of it.
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4 opportunities in the Edtech Market
These are the aspects you should invest in if you want to enter the digital education market and be successful:
edtech opportunities
1. Online tutoring services
It’s been an interesting few years for companies that connect students with tutors who teach online. Between 2016 and 2019 , online tutoring services raised more than $1.2 billion in venture capital, according to data from EdSurge. American students represent a large market, but so do students in China and India , where they see education as a way to gain more prestige and status.
For instance, in February, Snapask, a Hong Kong-based online tutoring company, raised over $35 million . While Byjus, an Indian company valued at $5.75 billion in 2019 , reported earnings of over $196.89 million during the fiscal year 2018-2019 , tripling its earnings compared to previous years.
Other countries are also joining the market. By 2019, other companies have appeared, such as:
Cluey Learning, an Australian company that raised over $14 million.
Kiid, a Korean tutoring company that raised $18 million.
Noon Academy, from Saudi Arabia, with earnings of $8.6 million.
Orcas, an Egyptian company that reached $500 thousand dollars.
2. Aids and applications for education and entertainment
Interest and investment have proven strongest in tools and services designed to help students of all ages and their families learn at home, both for homework and for fun. “Everyone who has direct student outreach is reporting huge growth ,” explains Paul Freedman, CEO and co-founder of Entangled Group, an education consultancy that was recently acquired by another edtech company, Guild Education.
learning apps
3. Tools that connect schools with students and families
It has always been difficult for schools to successfully communicate with students and their families, and the pandemic has only made the problem worse. The truth is that systems that help educators, students, and parents stay in touch are not only necessary, but also benefit the educational process. Betting on this niche market is an excellent idea if you want to get into Edtech.
4. Accessibility and equity
What’s the point of having a great product if people can’t use it? The pandemic has revealed (and in some cases reinforced) the fact that many students don’t have internet access or the technological tools they need to access remote education. Even those who do have the tools struggle with remote learning that isn’t adapted to their disabilities.
In short, the Edtech market is a market with endless opportunities for those companies that want to start in the world of education. Especially considering that many of the changes that have occurred as a result of COVID-19 are here to stay and we have to learn to live with them.
Is your business part of the education sector or are you interested in getting into it from the marketing side? At Impulse we go beyond lead generation , identifying solutions to cultivate your leadership through content and automation.
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