Future of K-12 Edtech
What's Next for K-12 Edtech Funding?
Based on conversations with edtech investors, we've identified four future scenarios. Read through each scenario and then select the one that you believe to be the most likely to happen in the next 3-5 years. See how your selection compares to others.
Investment in the K-12 sector continues as usual: Money invested in curriculum products will continue to flatline or even decrease in comparison to products designed to support classroom teachers and school operations. And within curriculum investments, capital continues to pour into STEM-related products—coding in particular—with a growing increase in funds for tools designed to develop the skills necessary for the future of work, such as critical thinking, collaboration and perseverance.
Trade tensions between U.S. and China continue, driving down the amount of Chinese capital invested in the U.S. K-12 edtech market. With the U.S.-Chinese relationship fraying, Chinese investors are hesitant to fund U.S. K-12 edtech companies, even though they were once viewed as a vehicle for accessing new technologies and talent.
An unforeseen driving force tunes investors’ attention (and dollars) toward products that support instruction in arts or social studies, subject areas that have recently seen little capital investment. For example, if a number of states adopt U.S. history standards that closely resemble one another, curriculum companies would be incentivized to develop products for a larger market, spurring investment.
The growing consolidation in the K-12 sector leads to a smaller number of powerful players. Companies with a large share of the K-12 edtech market continue to make acquisitions in order to offer schools and districts a suite of products, rather than a single offering. At the same time, private equity firms continue to invest in K-12 companies as they have the cash on hand to make multi-million dollar investments, particularly for later stage rounds.
Please select your answer.
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