The Tech Edvocate

Top Menu

  • Advertisement
  • Apps
  • Home Page
  • Home Page Five (No Sidebar)
  • Home Page Four
  • Home Page Three
  • Home Page Two
  • Home Tech2
  • Icons [No Sidebar]
  • Left Sidbear Page
  • My Account
  • My Speaking Page
  • Newsletter Sign Up Confirmation
  • Newsletter Unsubscription
  • Our Brands
  • Page Example
  • Protected Content
  • Register
  • Request a Product Review
  • Shop
  • Shortcodes Examples
  • Signup
  • Start Here
    • Governance
    • Careers
    • Contact Us
  • The Edvocate
  • Topics
  • Write For Us
  • Advertise

Main Menu

  • Start Here
    • Our Brands
    • Governance
      • Dr. Lynch’s Personal Website
      • Careers
    • Write For Us
    • Contact Us
    • Books
    • Edupedia
    • The Edvocate Podcast
  • Topics
    • Assistive Technology
    • Child Development Tech
    • Early Childhood & K-12 EdTech
    • EdTech Futures
    • EdTech News
    • EdTech Policy & Reform
    • EdTech Startups & Businesses
    • Higher Education EdTech
    • Online Learning & eLearning
    • Parent & Family Tech
    • Personalized Learning
    • Product Reviews
  • Advertise
    • Request a Product Review
  • Apps
  • Tech Edvocate Awards
  • The Edvocate
  • Pedagogue

logo

The Tech Edvocate

  • Start Here
    • Our Brands
    • Governance
      • Dr. Lynch’s Personal Website
        • My Speaking Page
      • Careers
    • Write For Us
    • Contact Us
    • Books
    • Edupedia
    • The Edvocate Podcast
  • Topics
    • Assistive Technology
    • Child Development Tech
    • Early Childhood & K-12 EdTech
    • EdTech Futures
    • EdTech News
    • EdTech Policy & Reform
    • EdTech Startups & Businesses
    • Higher Education EdTech
    • Online Learning & eLearning
    • Parent & Family Tech
    • Personalized Learning
    • Product Reviews
  • Advertise
    • Request a Product Review
  • Apps
  • Tech Edvocate Awards
  • The Edvocate
  • Pedagogue
  • Universities Use Blockchain To Streamline Student Services

  • Top 7 Education Apps for the Classroom

  • Should Parents Also Know How to Use E-Learning Platforms?

  • Advances In Text-To-Speech Technologies Help Computers Find Their Voice

  • Campuses Have Used IoT Projects to Promote Convenience, Security, and Comfort for Students

  • Home-based Learning Tips For Parents: 6 Tips For Effective Learning

  • K–12 Leaders Get Creative to Make the Case for Network Upgrades

  • Network Segmentation Boosts Wi-Fi Performance And Security For K-12 Schools

  • The IoT In Higher Education Has Big Potential If Devices Are Kept Secure

  • How Schools Are Recruiting New Teachers Virtually

EdTech Startups & Businesses
Home›EdTech Startups & Businesses›Why Edtech Companies Don’t Make It

Why Edtech Companies Don’t Make It

By Matthew Lynch
November 3, 2017
Spread the love

Edtech companies are being started at a staggering rate. Each promises to resolve an issue, transform education, be better than its competitors, and ultimately change the face of education. While these traits may be commendable, there is no doubt that edtech companies are struggling in a market that is over saturated with products and idea. According to TechCo, in 2016, 56% of education startups remained open after 4 years. There are a number of factors why edtech companies fail, and by looking at a handful of these, we can better understand why edtech is such a competitive market and why some of the most well-intentioned companies fail.

Misunderstanding the Education sector

The education sector is a complex marketplace. Not only does every school district have varied needs but edtech products need to appeal to parents, students, administrators and school boards. Many edtech companies do not understand who they need to get buy-in from, and so cannot find a way into the classroom. Another problem is that too often edtech creators do not understand the actual needs of teachers and students, but their perceived needs. They create products that are solving already solved problems and trying to reinvent the wheel.

Edtech creators should not be designing products for their own reasons but actively figure out what the problems of the modern classroom are and will be. Failure to do this leads to the creation of products that are useless.

Unoriginal products

With a marketplace bursting with “innovative” products, the death of many edtech companies is because their product is not unique enough to compete. This is not to suggest that entrepreneurs are not forward thinking but that their products are too similar to products that are succeeding or already have a strong user base. Investors are unlikely to invest in products that do not stand apart from their competitors and administrators will not be interested buying products that they essentially already own.

New edtech companies need to do their homework and ensure that their products do not mimic other products and that they offer something new. This is an essential factor if their products are to be a success.

The Wrong Business Models

Many edtech products have embraced the freemium pricing model as the norm. This is attractive to new consumers (who like to get things for free) but can be detrimental to edtech companies if those same consumers do not buy the upgrades and in turn, bring money into the company. New edtech companies need to best understand how to sell their product and how to build investor confidence. Not every product will benefit from a freemium model and creators need to understand what plans are available on the market. Without a deep understanding of pricing and the different edtech business models, new companies will never see a cent in profit.

Lack of patience

The growth of any new company is slow, and for edtech companies, there is very little hypergrowth. Most companies will only see growth after 5 to 10 years of commitment. This can be uninspiring and moral crushing for new companies who have followed the freemium model and may not see any profit for a while. Having patience and providing investors with data and user numbers is important in building long-term confidence and a solid relationship. Edtech entrepreneurs too often do not see the yield of their product, and so they lose hope, and the product comes to a quick death.

So, while edtech companies have the traditional problems that come with start-ups, there are very specific areas that lead to the failure. Edtech companies need to meet a real educational need, be unique and understand what business model works best for their growing company. It is also very important that edtech entrepreneurs understand that growth will be small at first and this should not dissuade entrepreneurs from working hard. Edtech is the future of education, and we need more exciting products that will change the way we learn.

 


Spread the love
TagsEdtechedtechchatelearningSTEAMSTEM
Previous Article

What Would MLK Say About Digital Inequity?

Next Article

5 Fresh Ways to Teach Kids to ...

Matthew Lynch

Related articles More from author

  • Higher EducationOnline Learning & eLearning

    The Ever-Expanding List of Online Degree Options

    June 21, 2017
    By Matthew Lynch
  • Higher Education EdTech

    How to involve students in your college’s IT strategy

    August 25, 2017
    By Matthew Lynch
  • EdTech & InnovationElementary Education

    Using Technology to Inspire Reluctant Readers

    July 6, 2017
    By Matthew Lynch
  • Early Childhood & K-12 EdTech

    Artificial Intelligence: Are Computers Taking Over for Teachers?

    September 23, 2017
    By Matthew Lynch
  • Early Childhood & K-12 EdTech

    Why You Should Be Selling to the ELL Market

    January 1, 2018
    By Matthew Lynch
  • Early Childhood & K-12 EdTech

    Social Media and the Student/Teacher Relationship: The Pros and Cons of Establishing Connections with a Grade School Student

    December 17, 2016
    By Matthew Lynch

2 comments

  1. Should I Sell My Education/Edtech Company? - The Tech Edvocate 9 August, 2019 at 05:22 Reply

    […] in revenue in 2017 and is expected to grow to $40.9 billion by 2022, yet many edtech companies don’t make it. The trick is to sell the business before it fails. Let’s look at some signs that it might be […]

  2. Why the Edtech Potential Will Never Reach Its Potential - The Tech Edvocate 14 August, 2019 at 05:18 Reply

    […] Yet, with all this hardware and connectivity, edtech has not reached its potential and doesn’t look to do so in the near future. Fact is, most teachers are not using new technologies to transform their teaching.  Let’s look at some of the reasons why edtech companies struggle to succeed. […]

Leave a reply Cancel reply

  • Early Childhood & K-12 EdTechEdTech Policy & Reform

    How to Put Together a District-Level Digital Leadership Team

  • Early Childhood & K-12 EdTechEdTech Policy & Reform

    Closing the achievement gap using iPads

  • Early Childhood & K-12 EdTech

    Teachers: Make The Internet Work For You

Search

Login & Registration

  • Register
  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Newsletter

Signup for The Tech Edvocate Newsletter and have the latest in EdTech news and opinion delivered to your email address!

  • Recent

  • Popular

  • Comments

  • Universities Use Blockchain To Streamline Student Services

    By Matthew Lynch
    January 22, 2021
  • Top 7 Education Apps for the Classroom

    By Matthew Lynch
    January 21, 2021
  • Should Parents Also Know How to Use E-Learning Platforms?

    By Matthew Lynch
    January 20, 2021
  • Advances In Text-To-Speech Technologies Help Computers Find Their Voice

    By Matthew Lynch
    January 19, 2021
  • Campuses Have Used IoT Projects to Promote Convenience, Security, and Comfort for Students

    By Matthew Lynch
    January 15, 2021
  • 20 Top Virtual Reality Apps that are Changing Education

    By Matthew Lynch
    March 11, 2017
  • 7 Ways Technology Is Impacting Modern Education

    By Matthew Lynch
    March 4, 2017
  • Why Mobile Technology Enhances Instruction

    By Matthew Lynch
    December 14, 2016
  • What is the Future of Online Learning in Higher Education

    By Matthew Lynch
    April 2, 2018
  • 7 Roles for Artificial Intelligence in Education

    By Matthew Lynch
    May 5, 2018
  • Campuses Have Used IoT Projects to Promote Convenience, Security, and Comfort for Students - The Tech ...
    on
    January 15, 2021

    9 Examples of the Internet of Things in Education

    […] Institutions with campus-wide ...
  • Home-based Learning Tips For Parents: 6 Tips For Effective Learning - The Tech Edvocate
    on
    January 14, 2021

    The 3 Types of Interaction During Online Learning

    […] providing students with ...
  • A Bad RAP – SAM P LENOX
    on
    January 13, 2021

    Cyberlearning vs. Elearning – Is there a difference?

    […] in learning more about ...
  • Network Segmentation Boosts Wi-Fi Performance And Security For K-12 Schools - The Tech Edvocate
    on
    January 12, 2021

    5G Networks Promise to Make Instructional Technology Better

    […] already mentioned, there ...
  • Creating Powerful Learning Experiences in Google Classroom – MarkerSpace America
    on
    January 12, 2021

    Creating Powerful Learning Experiences in Google Classroom

    […] Read full Story ...

EdTech Policy & Reform

  • EdTech Policy & Reform

    How Much Bias Is Okay in Your School?

    Spread the loveThe algorithm has proven itself to be a handy tool when it comes to solving education problems. It’s also not without bias.  You may be wondering how some ...
  • EdTech Policy & ReformFeaturedFresh

    Edtech Should Complement Good Pedagogy, Not Attempt to Replace It

    Spread the loveThe newest generation of edtech is downright amazing; it’s no wonder that various education stakeholders might be a little excited about its potential to transform education. However, edtech ...
  • EdTech Policy & ReformFeaturedFresh

    How to Teach Kids to Communicate in This Digital Age

    Spread the loveWhen even the youngest children are spending the equivalent of a full work day looking at screens, it is perhaps no surprise that parents are wondering how to ...
  • EdTech FuturesEdTech Policy & Reform

    3 Reasons Why India Will Be A Leader in the EdTech Industry in the 21st ...

    Spread the loveAccording to a joint report by KPMG and Google, the online education industry is expected to grow at a healthy rate of 8 times to become a $1.96B ...
  • Early Childhood & K-12 EdTechEdTech Policy & ReformFeaturedFresh

    How Does Technology Immersion Shape the Brain?

    Spread the loveDo you wonder what all of the screen time we have is really doing to our brains? As edtech continues to rise in prominence throughout the world, this ...

EdTech Startups & Businesses

  • EdTech Startups & BusinessesOnline Learning & eLearning

    Using Nudge Theory in Your Corporate Online Learning Classes

    Spread the loveAfter reading this headline, you may be asking yourself, what is nudge theory? Nudge theory centers on positive reinforcement and inferred suggestions to motivate a person to complete ...
  • EdTech Startups & Businesses

    Bringing Education into the Business World

    Spread the loveU.S. businesses spent nearly $20 billion on training in 2019. That number decreased by roughly half from the year before. Companies aren’t providing fewer professional development opportunities for ...
  • EdTech Startups & Businesses

    You Must Include These 3 Things in Your Edtech Business Plan

    Spread the loveDo you have a business plan? It’s the one question you’re going to be asked a lot as you begin your edtech business. The reasons to write a ...
  • EdTech Startups & Businesses

    Edtech Marketing Ideas to Implement Right Now

    Spread the loveEven if you do have the most exceptional edtech product or service in the world, you’ve still got to market it. Your sales and your success depend on ...
  • EdTech Startups & Businesses

    How Your Edtech Startup Can Make the Leap from Failure to Funded

    Spread the loveThe best ideas in edtech are often only ideas. They never become a reality because they lack the funding they need to get off the ground. Taking an ...

Digital Equity

  • Digital EquityDigital Leadership

    How Can You Assess the Tech Needs of Your Students Outside of School?

    Spread the loveToday, I received an email from the middle school principal in Los Angeles. She explained to me that the school that she ran was in one of the ...
  • Digital Equity

    It Is Time for the Edtech Industry to Stop Denying Its Equity and Race Problem

    Spread the loveThe EdTech industry is dominated by white employees, white leaders, and white entrepreneurs. If you doubt this statement, just attend an Edtech conference. Admittedly, educators and others don’t ...
  • Digital Equity

    How OER Can Help Overcome the Higher Education Equity Barrier

    Spread the loveThe cornerstone of the American dream is the ability to succeed in life regardless of one’s family of origin. And, for most people, that requires a college education. ...

EdTech Futures

  • EdTech FuturesOnline Learning & eLearning

    IT Trends To Watch As Higher Education Moves Into a New Decade

    Spread the loveEdtech couldn’t have hoped for a better launch into the new decade than the push the industry received from COVID-19. Even the most tech-resistant institutions and individuals have ...
  • EdTech Futures

    4 Emerging EdTech Trends in 2021

    Spread the loveCovid-19 has not only changed education as we know it, but it has forced education technology (EdTech) to up its game. EdTech has been crucial since the start of this ...
  • Adult EducationEdTech & InnovationEdTech FuturesEducation LeadershipEducational LeadershipHigher EducationHigher Education EdTechThe Future of Education

    Education Technology and the Future of Higher Ed Leadership

    Spread the loveEducation Technology (EdTech) has had a more significant impact on education than anyone expected. Now its effects are reaching into the field of higher education. In this article, ...
  • EdTech Futures

    Top Edtech Trends for 2021

    Spread the loveAre you ready to look ahead? Schools will soon be reflecting on what’s been working this year and what’s not. They’ll also begin thinking about their budgets for ...
  • Early Childhood & K-12 EdTechEdTech Futures

    In the Wake of Teacher Shortages, Schools are Turning to Virtual Teachers

    Spread the loveTeaching was once a greatly respected position, and today, morally it still seems to be of high value to many Americans. Institutionally, however, teaching no longer seems to ...

About Us

Since technology is not going anywhere and does more good than harm, adapting is the best course of action. That is where The Tech Edvocate comes in. We plan to cover the PreK-12 and Higher Education EdTech sectors and provide our readers with the latest news and opinion on the subject. From time to time, I will invite other voices to weigh in on important issues in EdTech. We hope to provide a well-rounded, multi-faceted look at the past, present, the future of EdTech in the US and internationally.

We started this journey back in June 2016, and we plan to continue it for many more years to come. I hope that you will join us in this discussion of the past, present and future of EdTech and lend your own insight to the issues that are discussed.

Newsletter

Signup for The Tech Edvocate Newsletter and have the latest in EdTech news and opinion delivered to your email address!

Contact Us

The Tech Edvocate
5322 Markel Road, Suite 104
Richmond, VA 23230
(601) 630-5238
advocatefored@gmail.com

Follow us

Copyright © 2021 Matthew Lynch. All rights reserved.