How Your Edtech Startup Can Make the Leap from Failure to Funded
The 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 idea from concept to launch requires grit and patience, savvy design, and a desire to solve problems. It also requires funding.
Getting the funding you need can make the difference between having a dream and driving a home run down centerfield. After all, it takes money to design and build a product. Without deep pockets or helpful investors, edtech startups may be destined to fail.
The money is there for the taking. In 2019, edtech startups have raised nearly $1 billion in funding. That’s almost a quarter of a million more than what was raised in the previous year. So where do edtech startups find the funding they need to move forward in a big way?
Walk in the shadow of giants
Perhaps one of the best ways to fund your edtech startup is to work with someone already successful. Leviathans like Google, the Gates Foundation, and Chan Zuckerberg Initiative Investments may be willing to invest in your ideas. They’re not the only ones.
Pearson Ventures may be the parent company right for your edtech startup. Pearson has already earmarked $50 million to breathe life into edtech startups. The education giant wants to co-invest with other venture capitalists.
If you’re concerned that Pearson is creating an acquisition pipeline, rest easy. The company seeks to learn from small startups, not acquire them. They’re avoiding setting mandates or establishing processes. Instead, they want to assist with marketing.
Get by with a little help from your friends
You can ask for help from family and friends, and they might help you take your edtech startup idea farther than you could on your own. Don’t stop there.
Crowdfunding may be the resource that catapults your edtech solution from conceptualized to completed. Raising capital this way can put your idea in front of a large group of people – much bigger than family and friends alone. Raising money this way allows you to offer buy-ins in several different ways.
You can accept donations or offer something in return for the investment. These may be rewards-based, like giving out a prototype of your product. They can also be equity-based, in which investors receive a business share.
Work from the inside out
What if the problem is with how you do things? Several other strategies can help you get the funding you need, but you have to be willing to change your practices. You may love how you’ve always done things. Growth, however, demands change. Re-organization, re-design, and even restructuring may be necessary.
You don’t have to commit to a single way to fund your edtech startup. Many startups in the early stages turn to several funding sources to get themselves up and running. The money is there. All you have to do is go after it.
With a lot of work and a little luck, you too can make the leap from failure to funded.