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The Finances Behind Education Technology

by Natasha Singer

New York Times

Article excerpt

Education Technology Graduates From the Classroom to the Boardroom

Because many school start-ups are so new, Mitch Kapor, a partner at Kapor Capital, a venture capital fund that has invested in more than 30 education start-ups, predicted that it would take seven to 10 years for the school ed tech market to become clearer.

Our take

Ed Tech Can Be Risky Business

Technology in education is a hot ticket these days with many businesses—large and small—throwing their hats into the ring, hoping to gain a share of an estimated $3 billion in venture capital funding. The trouble is that the education industry is quite fragmented, with about 13,500 school districts in the country. In addition, many start-ups fail. How can school systems identify the best opportunities for tech adoption?

The ed tech market is still quite young, as this article points out, with much positioning continuing to take place. Many ed tech firms are moving out of the traditional education market to focus on corporate training opportunities. School systems are likely best served by relying on industry stalwarts and avoiding start-ups that may not last over the long term.