‘Edtech is no longer optional’: Investors deep dive into the future of the market

One reason some venture capitalists and founders don’t enter edtech is because the space has a sluggish stereotype, thanks to red tape, slow sales cycles, and, in America, a fragmented customer base.

But data suggests that edtech’s reputation is not entirely earned. Byju’s is India’s

second-most-valuable company

. Since 2013, there have been 300 acquisitions in the space

. And if you only understand success in terms of unicorns, two edtech businesses, Quizlet

and ApplyBoard

, were recently added to the $1 billion valuation club.

The tension between edtech’s stereotype and its potential for return, plus the surge in remote learning due to coronavirus-related shutdowns, poses an interesting challenge for the market.

In the beginning of the pandemic, TechCrunch talked to a group of edtech investors to get their knee-jerk reaction to the remote learning boom. Unsurprisingly, many commented that

the heat-up

of the sector will materially impact K-12 and higher education and unlock new opportunities. Others warned early-stage edtech startups about how newfound competition could hurt content

, quality and effectiveness of their end product. Overall, the general message was that the boom is here, everyone is excited and waiting to see what happens next.

Fast forward a few months, mistakes and extended school closures later, edtech now has a better inkling on what

the next billion-dollar business needs to get right.

Today, we talked to a number of top venture capitalists to get an eagle-eye view of what rapid change, adaptation, and for lack of better phrasing, popularity does for the market.

Today you’ll hear from the following investors:

• Ian Chiu

  , Owl Ventures

• Shauntel Garvey

  and Jennifer Carolan

  , Reach Capital

• Jan Lynn-Matern

  , Emerge Education

• David Eichler

  , TCV

• Jomayra Hererra,

  Cowboy Ventures