The global market for educational technology is expected to expand from 2021 to 2028 at a rate of approximately 20% per year. We can expect more cutting-edge technologies, EdTech businesses, websites and applications, as well as increased global use of online learning platforms.
The audience is waiting, the investors are there, and the ideas are there.
Now is the perfect time to join the educational technology community!
Maybe you already have a great idea that you want to develop, but it just feels impossible and overwhelming. You could believe that there is simply too much competition and that you won't stand out, or that you lack any unique ideas.
In fact, everything is possible.
There are many untapped opportunities in the EdTech business, which is far from being overloaded.
Keep reading if you've chosen to set your doubts aside and try to figure out how to start EdTech company.
Why you should start an EdTech company in 2022
If you're an entrepreneur, making money is your first priority while launching an EdTech business. An existing IT company or software house may create an EdTech startup for a variety of reasons, aside from business.
EdTech Creates a Life-Long Learning Process
A Speak-up annual survey on the use of technology in education found that 72% of schools employ cloud technology, 57% allow student usage of mobile devices in the classroom, and 48% offer online courses.
To obtain an education that we can use in the workplace, we attend both high school and college. Well, this idea is becoming outdated. After completing high school or college, the practice of learning should not be stopped. Now, the process never ends. In fact, regardless of age, it is essential to keep your skill sets updated in this ever-evolving technology world.
Top companies like Deloitte, Walmart, PwC, and others are emphasizing the value of lifelong learning. From the first day of employment until the end of their professional careers, they teach their staff using eLearning resources. Related article: The 13 most important advantages of corporate eLearning.
Governmental and commercial entities are in need of EdTech solutions, which an EdTech company can provide.
EdTech Market Isn’t Enough Saturated
The global market for education is predicted to grow significantly to a whopping USD 8 trillion by 2025. Around the world, only 3% of the money is now allocated to digital learning. The figure indicates that the market is not yet fully saturated. A corporation can achieve a perfect market share if it is committed enough to do so. Over 21,000 educational startups are listed on the startup marketplace Angel.co, up from 16,000 in only two years.
Over time, traditional educational methods have skyrocketed in cost. It increased costs and had negative effects on the environment.
The US Bureau of Labor Statistics found that between 2006 and 2016, the price of a textbook increased by 88%. The increase is even greater than the rise in housing costs and university fees, which are 63% and 50% higher.
The world now has an option to avoid paying high prices thanks to edtech. Digital books not only save publication costs but also enable wide-scale distribution among students. Additionally, digital materials are useful for future updates and revisions. Additionally, EdTech has reduced the cost of student transportation.
A startup for educational technology is also extremely rational. A piece of software may now be created for a fraction of the price it formerly did thanks to the rise of open source and the spread of trustworthy outsourcing businesses. The cost of developing a new EdTech product has been reduced by 20–50% thanks to open-source technologies.
There are several untapped opportunities available for businesses to seize. Let's examine a few of them.
In the eLearning sector, gamification is a prominent issue. It hasn't yet been used to its full potential, thus additional research is required. The social learning hypothesis, which claims that learning is a cognitive activity that occurs in a social setting, should also be included. Individuals learn best while watching other people in action since learning happens through observation and direct teaching. Related article: Top 7 EdTech Trends for Kids.
Overall, there are a lot of market gaps that your newly established business can cover as well as a lot of popular technologies you may employ to compete.
eLearning Is Interesting to the Investors
The EdTech sector has seen a significant increase in venture capital investments. The quantity of agreements decreases as investment increases. It indicates that VCs are more selective about the businesses they choose to fund. In such a case, enlisting the support of an incubator or accelerator may be smart.
Democratizing education is one of EdTech's non-profitable benefits. In the past, only members of the royal family, the nobles, and the rich had access to education.
The use of edtech might end this prejudice. No matter their social position or location, EdTech can offer everyone a high-quality education. Schools in less developed parts of Africa can offer instruction on par with any reputable educational institution school in rich countries.
How to launch an EdTech startup?
Identify your industry
Defining the precise problem that your product is solving should be the first and main thing you think about when starting an EdTech startup. Your niche will be specified in the solution statement. It would be helpful if you keep in mind that there are several requirements in the education industry, and no single solution can meet them all.
In order to succeed, you must put in a lot of effort, take calculated risks, and give up a lot of other aspects of your life. You must also exercise the initiative to guide the employees of your new company on the appropriate path.
Validate your idea
It is critical to understand that depending on where they are located, various educational institutions may have different needs. The edtech tools and products you create should also be appealing to instructors, employees, managers, students, parents, and administrators of educational institutions. Related article: Early Adopters: 5 Stages of Technology Adoption.
A specific user's demands should be met by the product being delivered. Because they don't identify their target market, many edtech businesses fail. You should thus make an effort to pinpoint the ideal market for your product. In addition, avoid attempting to solve issues that have previously been resolved.
Choose the right business model
It's important to set the best company model. A business plan outlines how you will achieve your objectives. In addition, it helps in establishing the value of your product to the target markets.
You are recommended to create a sustainable business around any particular issue you are motivated to solve rather than concentrating on making money or expanding a sizable customer base.
There are many opportunities available right now in the edtech industry. But if you want to seize the opportunity, you can't save on anything.
Build the right team
Putting together a team of qualified, creative, and ready-to-work employees is crucial for every new business. Because of this, you need to assemble professional employees. Make every effort to surround yourself with people who share your enthusiasm for changing the face of education. Every team member's responsibilities should be clearly specified.
Additionally, you want to employ people who have strong relationships with the principal, teachers, parents, and other stakeholders at the school. These people may provide them with insightful input, which can then be used to improve your products.
Create quality content
It's also essential to provide top-notch content. The sad truth is that it is frequently ignored. You should keep in mind how important it is to define a product correctly. Without producing immersive and engaging content, it won't matter how interesting your product is or how many great features it offers.
You can employ freelancers if you don't have enough time to generate engaging content. However, since it characterizes your product, you should never skimp on the quality of your writing.
Start with a proof of concept/MVP
By launching an MVP, you may test your idea while spending significantly less money than would be required to create the whole product. Having real customers test your product will provide you valuable insight into its features, user preferences, and any potential bugs. It's important to note that a lot of successful EdTech company have outsourced the development of their MVPs. Although it might seem strange, hiring edtech software development specialists is actually less expensive than developing it in-house. PioGroup Software can help you develop any EdTech solution, analyze your business idea and support, maintenance your product after the launch.
How to fund an EdTech startup?
Bootstrapping refers to financing your startup with little or no outside funding. This entails relying on your own funds and income flow from your organization. Although dangerous, it is a reasonable option. By funding your business with your own money, you maintain exclusive ownership and have complete control over its course. However, if funding runs out or there is not enough money to expand and scale the business, things might get complicated. Related article: What is the Price of not Providing Employee Training?
In recent years, crowdfunding has outperformed investments in popularity, and it's simple to understand why. When a product is launched, it involves collecting small sums of money from a large number of people in exchange for a gift or non-cash bonus. While you'll need to have a marketing strategy in place to spread the word about your idea and spark interest, it may generate a significant sum of money in only one month!
You can typically get the loan you need from banks to fund your business. The good news is that the bank has no control over your decisions, and making monthly installment payments is simple. The bad thing is that you must repay that money regardless of the success or failure of your business and must be ready to face the consequences in the event of a default. Related article: How Much Does It Cost to Develop an LMS?
Grants and sponsorships
Many government and private organizations, as well as academic institutions, provide funding for edtech startups, which can be paid out all at once or over the period of several months. These are excellent options because startups are frequently exempt from repayment obligations. However, in order to get the funds or to continue receiving financing, they must meet specific conditions and standards.
Finally, we can conclude that by following these steps, you may have a smooth start for your business. However, we should all keep in mind that consistency is essential for any business to improve. Any business may succeed with careful planning and strategy, and this is also true for EdTech.