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
  • Lynch Educational Consulting
  • My Account
  • My Speaking Page
  • Newsletter Sign Up Confirmation
  • Newsletter Unsubscription
  • Our Brands
  • Page Example
  • Privacy Policy
  • Protected Content
  • Register
  • Request a Product Review
  • Shop
  • Shortcodes Examples
  • Signup
  • Start Here
    • Governance
    • Careers
    • Contact Us
  • Terms and Conditions
  • The Edvocate
  • The Tech Edvocate Product Guide
  • Topics
  • Write For Us
  • Advertise

Main Menu

  • Start Here
    • Our Brands
    • Governance
      • Lynch Educational Consulting
      • Dr. Lynch’s Personal Website
      • Careers
    • Write For Us
    • The Tech Edvocate Product Guide
    • Contact Us
    • Books
    • Edupedia
    • Post a Job
    • The Edvocate Podcast
    • Terms and Conditions
    • Privacy Policy
  • 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
  • Tech Edvocate Awards
  • The Edvocate
  • Pedagogue
  • School Ratings

logo

The Tech Edvocate

  • Start Here
    • Our Brands
    • Governance
      • Lynch Educational Consulting
      • Dr. Lynch’s Personal Website
        • My Speaking Page
      • Careers
    • Write For Us
    • The Tech Edvocate Product Guide
    • Contact Us
    • Books
    • Edupedia
    • Post a Job
    • The Edvocate Podcast
    • Terms and Conditions
    • Privacy Policy
  • 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
  • Tech Edvocate Awards
  • The Edvocate
  • Pedagogue
  • School Ratings
  • How Machine Learning Will Transform the Classroom

  • Milestones of Development: Everything You Need to Know

  • Partnerships Between IT and Physical Security Improves Campus Security

  • Tips for Using Twitter in the Classroom

  • Writing and Reading Goals For the First Grade: Everything You Need to Know

  • Trends That Will Help Your EdTech Startup Succeed

  • Why Cultural Appropriation is Wrong

  • Differentiated Reading Instruction: Everything You Need to Know

  • 13 Ways to Differentiate Instruction

  • Assessing Your Students’ Reading Progress: Everything You Need to Know

EdTech Startups & Businesses
Home›EdTech Startups & Businesses›Why Do Many EdTech Startups Fail?

Why Do Many EdTech Startups Fail?

By Matthew Lynch
February 23, 2017
3
Spread the love

Every startup has its own struggles, and education technology startups are no different. Even companies like Udemy, Coursera, and Duolingo, with over $100 million in funding, are still figuring things out as they grow. They are well known to the public and are considered the industry frontiers, and yet they are still struggling to become profitable. Several new and unknown startups have trouble succeeding, and sadly, many fail before they even start. Let’s discuss some of the most common reasons why this happens.

Lack of market understanding

The education market is quite diverse and unique, and many startups fail to realize this. In the case when a startup is selling B2B products, it is not only school representatives who are buying the product. Startups also need to consider the kids and teachers who would use the product regularly, not to mention parents who may have an entirely different point of view. In the case of B2C products, the company is competing with several other companies with similar or the same products. Even if the product features vary slightly, the customer value is often still the same. And just as in other competitive industries, it is crucial to set a price for the product that maximizes your profits while remaining attractive to customers.

Startups expect high growth right from the start

There are several industries in which companies can look forward to high growth, such e-commerce, taxi businesses, or local businesses without nearby competition. Education is a field where technology has a lot to offer but affects several interested parties, and because of that, change is coming slower. This affects startups offering their product to these companies, too. It might take 15–20 years of hard work to achieve greater impact and hyper growth.

It might take five years for the product to fit the market

Some people might argue that Coursera and Khan Academy have millions of users and are quite popular. But what most of those people are forgetting is that most of their users are not paying for those services. In the education technology industry, it takes the time to create a model, set pricing, and implement strategies effectively, and many startups don’t do this and fail. A startup that plans to succeed should focus its attention on surviving as long as possible and testing various strategies, so they can decide what works for them and what doesn’t.

Many startups start with a wrong revenue model

As previously stated, startups rush right to the success and skip crucial steps needed for them to succeed. One of these steps is getting to know the stakeholder really well, and using that knowledge to create an appropriate revenue model. For example, parents love quality products at affordable prices and educational institutions like unique products that can be bought at a low price and sold at a higher price. Based on these desires, a startup can see what it can do best and make the offer to beat the competition.

Early traction is interpreted incorrectly

Startups that get good initial traction make the wrong assumption it will continue. Being optimistic, they base future predictions based on this growth, and it makes things worse. Initial customers are often evangelistic people who are willing to try new products and give feedback. As soon as the new product launches, those people are nowhere to be found. It’s the next set of customers that is crucial for startups. These customers are usually less optimistic and more skeptical but are willing to try the product. These are the customer’s startups should listen to the most because those customers will provide some earnest feedback on how to improve the product, which might help gain more traction in the future. Startups should focus on their paying customers instead of their initial customers, and this can be a serious problem for most EdTech companies with good initial traction and inaccurate predictions for the future.

EdTech might be a hard market to enter, but it is also one with many great opportunities, as long as the startup company knows the written and unwritten rules of the market.

TagsEdtechedtechchatelearningSTEAMSTEM
Previous Article

Why Should We Invest in STEM Education?

Next Article

Why Is It So Hard for EdTech ...

Matthew Lynch

Related articles More from author

  • Early Childhood & K-12 EdTech

    5 Must Have Behavior Apps, Tools, and Resources

    August 10, 2017
    By Matthew Lynch
  • Assistive Technology

    6 Ways That Edtech Can Help Students with Autism

    September 12, 2017
    By Matthew Lynch
  • EdTech News

    For £9,000, students expect their classes to go digital

    September 15, 2016
    By Matthew Lynch
  • Uncategorized

    Trailblazers in Edtech: Steven Anderson

    August 11, 2017
    By Matthew Lynch
  • EdTech & Innovation

    Reading: How to Teach it in the Digital Era

    May 1, 2017
    By Matthew Lynch
  • EdTech Futures

    Learning vs. Testing: Can Tech Bridge the Gap?

    June 27, 2016
    By Matthew Lynch

3 comments

  1. Pallavi Fox 2 March, 2017 at 13:36 Reply

    Most firms experience failures and closure due to poor planning and a mistake that most people make, foreseeing what would happen in the future based on trends in the market.The baseline is poor management or a reluctant one that does not do thorough market research and also inadequate funding hence lack of resources to assure growth and expansion instead extinction takes place.
    Thanks for having the courage to shed light on this matter.

  2. Anthony Nelson 2 March, 2017 at 15:28 Reply

    It’s sad to see the failure of a start-up after a very short period of time but we must face the reality these things happen and we must learn from our own mistakes.As business owner, a prudent leader seeks advice and consultation from different stakeholders before coming up with a product and launching a business.
    Thanks Mathew for the interesting piece.

  3. Chronicling The Biggest Edtech Failures Of The Last Decade - The Tech Edvocate 10 July, 2019 at 05:36 Reply

    […] edtech industry has always been a challenging one. Edtech startups often fail to understand the marketplace they are trying to break in, struggle with finding the right business model, and do not keep end […]

Leave a reply Cancel reply

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

  • How Machine Learning Will Transform the Classroom

    By Matthew Lynch
    January 27, 2023
  • Milestones of Development: Everything You Need to Know

    By Matthew Lynch
    January 27, 2023
  • Partnerships Between IT and Physical Security Improves Campus Security

    By Matthew Lynch
    January 26, 2023
  • Tips for Using Twitter in the Classroom

    By Matthew Lynch
    January 26, 2023
  • Writing and Reading Goals For the First Grade: Everything You Need to Know

    By Matthew Lynch
    January 26, 2023
  • 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
  • 7 Roles for Artificial Intelligence in Education

    By Matthew Lynch
    May 5, 2018
  • Digital Literacy is the Most Important Lifelong Learning Tool

    By Matthew Lynch
    December 30, 2017
  • Where to Find Dyslexia Support for Adults - Case Training Services | Registered Charity #1051587
    on
    August 2, 2022

    11 Must-Have Apps and Tools for Dyslexic Students

    […] recorders Electronic flashcards ...
  • What Types Of Posts Can You Make In Google Classroom? - The Tech Edvocate - Gossip ...
    on
    July 31, 2022

    How to Integrate Google Classroom with the Power of YouTube

    […] of your posts. ...
  • Answers to Frequently Asked Questions About Google Classroom - The Tech Edvocate - Gossip Buz
    on
    July 31, 2022

    Answers to Frequently Asked Questions About Google Classroom

    […] Answers to Frequently ...
  • 10 Important YouTube Channels For Teachers - Kiiky Wealth
    on
    July 29, 2022

    10 Incredibly Useful YouTube Channels for Teachers

    […] Thetechedvocate.org – 10 Incredibly ...
  • Teaching Learners Digital Content Curation Skills - Fab Lab Connect
    on
    June 30, 2022

    Teaching Learners Digital Content Creation Skills

    […] Read More… […]

EdTech Policy & Reform

  • Curriculum & InstructionEdTech Policy & ReformEducation Leadership

    Why We Should Leave Behind the Cookie-cutter Education

    Spread the loveChange appears to be the only “constant” factor in the educational field. However, what happens when a more significant shift becomes necessary? To provide students with the best ...
  • Adaptive LearningCurriculum & InstructionDigital & Mobile TechnologyDigital Age TeachersEarly Childhood & K-12 EdTechEdTech & InnovationEdTech Policy & ReformInstructional Technology

    Exploring New Ideas: Student-Driven Remote Learning

    Spread the loveRemote learning is taking its toll on our students. They miss the social side of school. Not seeing their classmates or teachers is leading to nervousness, anxiety, and ...
  • Digital & Mobile TechnologyEdTech & InnovationEdTech Policy & Reform

    Implementing Education Technology by Pursuing Technology Education

    Spread the loveTechnology is used for many great things in our world. It’s a powerful tool when used correctly. As such, this powerful tool can be used to transform learning.  ...
  • 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 Startups & Businesses

  • EdTech Startups & Businesses

    Trends That Will Help Your EdTech Startup Succeed

    Spread the loveIf you want to thrive in the destiny of learning and self, shorten, tailor, and gamify. The bulk of EdTech businesses believes that digitizing conventional learning methods and ...
  • EdTech Startups & Businesses

    How to Sell Your Edtech Product

    Spread the loveDevelop a profile of the perfect consumer, target clients that meet that description, and plan on a long sales cycle. Selling to schools takes a different sales process ...
  • EdTech Startups & Businesses

    Edtech Companies Can Learn What Not to Do From Delta Airlines

    Spread the loveIt seems that edtech companies still have a lot to learn about their business models and practices. With that being said, there is a lot they can learn ...
  • Digital LeadershipEdTech Startups & BusinessesProduct Reviews

    Product Review of Collegix

    Spread the love This is a comprehensive ERP solution for colleges and universities that provides modular, totally integrated learners services, finance, HR, and advancement. Collegix provides online and offline workarounds ...
  • Early Childhood & K-12 EdTechEdTech Startups & BusinessesProduct Reviews

    Product Review of Discovery Education

    Spread the love Discovery Education is a big player in EdTech. The company has established itself as the leading provider of digital curriculum resources, digital content, and professional development for ...

Digital Equity

  • Digital Equity

    How to Create an Equitable Digital Culture in K–12

    Spread the loveDigital equity is vital in our schools. After all, it can help close the achievement gap. However, there is one prevalent problem concerning digital equity. That is the problem ...
  • Digital & Mobile TechnologyDigital EquityDigital Literacy

    Teaching Learners Digital Content Creation Skills

    Spread the loveContent curation is nothing new and has always been a coveted skill. It has been this way for hundreds of years — think of art galleries, museums, or ...
  • Digital & Mobile TechnologyDigital EquityEdTech & Innovation

    Promoting Online Access With Hotspots, Laptops, and Planning

    Spread the loveWhen becoming a leader in the field of education, it is important to consider equity. Some students may not have access to devices or the internet from their ...
  • 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 ...

EdTech Futures

  • EdTech Futures

    The IT Investments Securing the Future of Higher Education

    Spread the loveThe future of higher education still seems uncertain after the massive disruptions of the last two years. Universities and colleges are struggling with budget difficulties amid cybersecurity threats. ...
  • Adaptive LearningAssistive TechnologyEdTech FuturesInstructional TechnologyTeachers

    Will AI Replace Teachers?

    Spread the loveThrough the years, robots have taken over many jobs. First, they replaced horses and wagons and horses and plows, then they started to replace people. A few examples ...
  • EdTech FuturesHigher EducationHigher Education EdTechUncategorized

    The Future of Higher Education Must Avoid Returning to the Past

    Spread the loveColleges and universities can make higher education safer, smarter, and more accessible through automation and collaboration technologies – if they commit to it. Author: John Hulen, Director of ...
  • 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 2022

    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 ...

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
[email protected]

Follow us

Copyright © 2023 Matthew Lynch. All rights reserved.