BIG FIVE HEADLINES
Consulting firm Accenture suggests understanding learners’ mindset is more important than demographics when it comes to university budgets allocation. The report separates learners into 6 categories and summarizes the priorities of each. Focusing on learners’ goals instead of background will help universities invest in the right things that appeal to their “users”.
Budget efficiency is crucial for universities as money turns into a big issue post-pandemic. Only one fifth were in a good financial state before Covid-19 happened, and this number has certainly gone down since. Universities continue to seek new revenue streams, especially through online education. A growing number are investing in building their own online programs rather than using online program managers to get better returns. Jeffrey Selingo of FutureEd tracks the “The Rise of For-Profit Partnerships in Education ” since its roots in the 2000s.
ClassDojo, a communication platform connecting students, teachers and parents, is launching a virtual world for students in time for the upcoming school year. The company’s investing $125 million to bring kids into the metaverse and develop their creativity and soft skills:
“We don’t want to turn it into an edutainment thing where we do math games with robots. That’s been done a million times. We want to expand the creative toolset that kids have,” shared president Liam Don.
On a similar note, Meta’s next big bet is the “metaversity”, with $150 million investment to build immersive VR degrees with 10 real institutions across the US. Following the successful Morehouse experiment, the company believes this will be a good way to provide low-cost high-quality education and keep engagement levels up for remote students.
There are, however, some concerns about bringing Meta into the education space given their record of mishandling users’ data. ClassDojo’s cuddly monsters seem a little more trustworthy than the big tech conglomerate, with 95% of U.S. schools using (and generally trusting) the K-12 company today.
Speaking of big companies and data privacy concerns— a municipality in Denmark, Helsingør, is banning Google Workspace and Chromebooks in schools. Following a 2020 violations report from Helsingør, Denmark’s data protection agency found Google’s terms do not comply with GDPR. The decision is local but will likely affect other regions too.
Despite more stringent regulations and the difficulty of juggling many and different educational systems, European edtech seems to be doing better than most. A Brighteye report shows the sector has continued its growth despite — or maybe because of — the worsening macro economic situation:
“Economic downturns drive people to seek training and governments to increase spending on training and education. Conversely, booms increase the return on knowledge and expertise,” reports Brighteye.
Indian edtech keeps bringing only bad news:
Following a report saying edtech was the largest violator of advertising code in 2021-22, the government threatened the sector with strict regulations if they fail to fix false advertising.
This seems in line with the “customer acquisition at all costs” strategy employed by many. There have been numerous complains both by users and ex-employees about questionable tactics to on board students and parents.
Byju’s specifically is under a lot of fire. The company is yet to submit its financial statements due in March 2022; there is still the $250 million funding missing; despite layoffs and financial troubles, the company is eyeing a $2 billion acquisition of 2U. It’s no wonder lawmaker Karti Chidambaram is launching an investigation into Byju’s finances.
FUNDING + M&A
Curriculum developer Great Minds PBC raises $150M. Now with former Louisiana State Superintendent of Education John White as Chief Success Officer, the company plans to expand its offerings and invest in “best-in-class digital experiences”.
Upskilling company Geekster raises $1.2M to expand their team and offerings. The company targets students who want to improve their programming skills but only charges them once they land a good earning job.
Video creators academy for kids xQ raises $1.4M.
World's premier legal education provider BARBI Global acquires Strafford, a leader in online courses.
Swedish educational games start-up Zcooly acquires Peppy Pals, a company that develops kids’ EQ through storytelling.
Huntress, the managed security platform for small and mid-market businesses, today announced it has acquired Curricula, a fun, story-based security awareness training platform that empowers employees to better defend themselves against hackers.
Alpine Investors acquires research-based online platform FEV Tutor, with Jim Tormey of Alpine taking the CEO position. Co-Founders Anirudh Baheti and Ryan Patenaude will continue to serve in leadership roles.
Shanghai University acquires Gale Scholar, giving access to Gale’s content and search technologies to nearly 58,000 students across the university's three campuses. The acquisition also aims to further the university’s advances in the Digital Humanities field.
LISTEN
In the latest episode, we talk to Troy Williams. As a former edtech start-up operator himself, Troy brings in years insider’s experience to his position as a Managing Director at Achieve Partners, a private equity firm investing “in the future of learning and earning.”
“The learning that happens at those universities [is] not helping those students necessarily get a job. And the reality is, there are shorter pathways, that could be three to six months, that are not nearly as costly in terms of time or money or debt, that can get people much better jobs, for a relatively fraction of the investment. ”
To learn about the values and exciting companies Achieve Partners invests in, listen to the full episode »
READ
Deaths of Despair and the Future of Capitalism by Anne Case and Angus Deaton.
“A surprising amount of this book is about the educational divide” - Alex Sarlin.