The declaration of a pandemic in the winter of 2019 marked the beginning of a new period of wealth for the education technology business. This was the moment when the whole globe got online.((Blue Ocean Strategy)
As a consequence of the two-year pandemic that began with the storm that pushed software developers and everyone from other sectors to make money online, the reputation of this business began to deteriorate in 2023. This was the beginning of the industry’s decline.(You can see from the graph)
When I look at enterprises in general in the year 2024, I see that they are still making an attempt to exist in the Edtech field. However, as the graph demonstrates, this needs them to maintain a lifeless atmosphere.((The Black Ocean Strategy)
Unfortunately, despite their best efforts to deliver education at a reasonable cost, firms that have lately been created in the field of education technology will fail.
Between the years 2020 and 2023, bootcamp companies and other Edtech enterprises saw their heyday. This might be attributed to the fact that the Edtech sector has transitioned into the hands of independent content providers.It is important to take into consideration websites developed by Teachable, Udemy, and Substack, in particular, if you have a high number of followers.
Edtech Companies Will Fail After 2024
According to the graph, businesses are beginning to get less investments, and the majority of them need either initial capital or partners in order to get their operations off the ground.
Platforms such as Substack, Patreon, and Buymeacoffee, which are operated by fans, will become more popular among enterprises who are trying to extend their operations in this sector in order to generate cost savings. Although cloud computing has become more economical in recent years, it is still possible for a company to generate a profit by paying less.
Unfortuitously, newly established enterprises focus largely on teaching skills related to job searching; they do not teach the fundamentals of entrepreneurship.
Case Study:Udemig
To discuss more specifically, I was following the Chief Executive Officer of the Udemig firm on the X platform. Two months after I joined the medium, I enrolled in the military and went through boot camp shortly after I returned from my time in the service. because it was necessary for me to teach myself about software for my own business.
I became aware of this when I regularly watched his new enterprises via various social media platforms.His pupils are given a 10% stake in the new businesses that he helps them build, which he does along with his students.
When compared to other educational technology companies, it is maybe the first of its kind anywhere in the world, and it has completely transformed the educational technology industry.mainly due to the fact that other educational technology businesses instruct just technical knowledge and how to enter the company.
It took me a full year to even become aware of this significant facet of the situation.
To claim that he normally works one-on-one with his students and provides funds for the new educational technology enterprises that he launches is a valid assumption to make. The following is what I have seen.
Additionally, he distributes his money to other people (the generation of material for social media might be difficult at times).
What Should Edtech Businesses Do Next, Then?
The proliferation of free software training on social media websites that include video material, such as Udemy and YouTube, is an indication that educational technology companies are, in essence, contributing to the deterioration of the environment.
In addition to providing educational opportunities, new businesses need to be established.It is important that students have access to a support system and that they are not left to fend for themselves.
It is essential to educate students, particularly those who are working in Edtech enterprises, on the many financing sources that are available to startups that are at the beginning stages of their development.