EdTech Series: Future Funding
May 18, 2021
This post was written by Bradford Saines. Brad has just concluded his time as an intern with the Alhambra US Chamber.
“The Future Series”, an EdTech Speaker Series sponsored by the Alhambra US Chamber, is an interactive online monthly talk where influencers from EdTech (Education Technology) discuss the industry. The Chamber supports The Future Series because of its mission to strengthen educational capacities around the world. Learn more about EdTech startups and companies from The US, Europe and other parts of the world by joining The Chamber at our April session! Click here to register.
On April 20th, Dr. Duleep Dehostale, host of The Future Series and Senior Consultant with The New York City based The Thinkubator, talked with Maria Spies, co-founder and co-CEO of HolonIQ. HolonIQ conducts extensive research using technology such as machine learning to discover data, trends and innovations in Edtech and presents these findings to industry leaders and media. Spies identifies two areas in the future of Edtech: extensive funding to make programs widespread to young students, and privatized education that will drastically reduce college enrollment.
Funding for Edtech
Spies noted that worldwide investment in Edtech is miniscule in comparison with that of health, technology and consumerism. She identified China as the leading country in the industry and India as the next most prominent, and says both countries have set themselves apart from Europe and the U.S. for of a variety of reasons, including
Innovation: Large venture capital is invested into technology such as Artificial Intelligence capable of detecting student attention levels and adapting teaching methods in response
Competition: few companies with massive investments creates education at scale, where several new American companies have limited resources available
Prioritization: Around 75% of China’s Edtech investment is in K-12 and after school tutoring
Alternatives to College
Spies believes in creating more options for students than just college, exemplified by China’s new 1+x model, which seeks to expand traditional and vocational learning in the coming years. As college becomes less affordable for the average student, market tendencies and innovations will offer cheaper and more efficient programs for students. Spies believes that the education industry will begin to privatize like health and utility industries did in the past.. Primary and secondary education are thought of as rights, since they are funded by taxpayers. Higher education is more privatized and thus more expensive by comparison. Spies expects an increase in publicly-traded companies in the realm of education. Research done by HolonIQ has led her to believe that there will be a drastic dip in American college enrollment by 2028.
Government structure and legislation support this prediction by favoring a transition away from traditional education. For example, the United Kingdom has dropped their university enrollment target to 50% of the population. Similarly, the United States Government has made a more discreet way of lowering enrollment expectations, investing money into vocational institutes and community colleges, and universities are well aware of the situation. According to Spies, structural changes that prioritize the interest of the students while maintaining the unique identity of each respective university is necessary to combat these changes.
EdTech not only affects those it teaches directly--it also indirectly affects other educational models and is influenced by them. According to Maria Spies, we can all expect big changes across the world as the EdTech industry develops, especially towards privatization and away from traditional four-year universities.
The Alhambra US Chamber greatly appreciates the contributions of Maria Spies and HolonIQ and their insight into the future of Edtech! Keep an eye out for our next installment in the Future Series: The EdTech Changemakers. Make sure to register here and follow our social media:
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