With the disruption of the pandemic, technology’s tentacles have left few sectors untouched. Technological progress in EdTech has been notable, and inbound investment has soared.
In H1 2021, investments in EdTech companies increased to $10 billion via 568 EdTech funding rounds. The comparable number a decade earlier was just $500 million of venture capital, which speaks volumes about how far the sector has come.
The shock of the pandemic disrupted learning globally, with a seismic, almost overnight shift to more technology adoption to support education continuity, and the rise of India as an EdTech powerhouse.
As with any sector being disrupted by technology, capital – and a lot of it – is required. For entrepreneurs accepting growth capital, it is a natural inclination to pursue expansion strategies, and leverage their technologies on a journey towards an ‘exit’ at an increased/optimal company valuation.
But this can be an easy misstep, and EdTech businesses should be careful not to get carried away obsessing about technology…
