The education technology sector (EdTech) has noticeably taken off during the past year. This has helped a lot of entrepreneurs and startups to accelerate their development processes and commercial exposure to new markets, especially for B2B business models and SaaS (Software as a Service).
According to Holon IQ, in the first 12 weeks of 2021, there has been $4B of venture funding raised by EdTech companies around the world, over $300M each week on average. Keep in mind that venture capital investment in education technology startups increased by 50 percent, from $7 billion in 2019 to $16.1 billion in 2020. This means that this year could be the all-time high.
Education technology has lots of definitions, but I would say that it is the merge between technological tools and educational practices that have the purpose of making learning more adaptable and of easier access for everybody, including the democratization of it.
The global pandemic has revolutionized the education experience in all sectors, and change continues to strike as schools, teachers, students, and companies adapt to this new reality. The learning sector has demonstrated great persistence and imagination to adapt to this new era. Startups have pivoted their business models and some others have taken advantage of the market and created new ones.
But the most important of all is that education technology has been able to help during this time as an indispensable way of adapting for many schools, making sure that classes continue and students can keep on learning.
We can see EdTech in all sectors: Educational Resources and Experiences, Advanced Tech and Coding, Language Learning, Education Financing, Tutoring, Learning Management Systems (LMSs), Workforce, Marketplaces, BlockChain, etc.
If you are someone that loves education but also technology, this would be a great time to start building your product or establishing your company, access to capital has never been more democratized, it’s a great moment to become an entrepreneur.