“EdTech is going to be the FinTech’s second” — four years ago, David Bainbridge, CEO of Knowledgemotions, told it to be a bold assertion. Now, hope has been well-founded. It is evident. Educational technology investment (EdTech) reached the global level of $18.66 billion last year, up from $16.34 billion in 2018. By 2025, a combined amount of $341 billion is expected to enter the ed-tech market. But the most important thing about this development is not slight, but the significant advantage which EdTech will soon gain over FinTech.
Key players: Who’s the Big EdTech Player?
The bulk of the well-known players today have their roots in the US, with America historically being the market leader — which is home for 43% of EdTech firms. Course, for instance, started as a brainchild for Stanford University professors keen to expand the accessibility of accredited higher education and has become a colossal global forum with numerous institutional collaborations and a significant force in large on-line open courses (MOOCs). In the same way, Udemy, a company headquartered in San Francisco, has expanded the availability of sector-specific experience with more than 2, 000 courses set up by qualified experts in different regions.
Why Ed-tech is Going to be a Booming Industry?
In the last three years, 62% of the in $37.8 million contributions have been made in educational technology firms alone. EdTech is a thriving industry that is expected to hit $252 billion by 2020. by 2020. Young pioneers who have knowledge of the shortcomings of the old paradigm when witnessing technological change are leading the way in innovating how we read and teach.
Rebecca Pretorius, country manager for university apps And Education, says “Technologically-enabled, young entrepreneurs are developing powerful digital resources to produce the best results in educational activities.
The booming growth of the industry, along with the size and access the internet provides, is a product of Pretorius’s creativity. In 2019, she underlines seven reasons that ensure a steady growth in EdTech:
- Education can be disrupted: education is a vast field that has undergone relatively little change to date as a structure that largely based on the school of the industrial era.
- Young adults lead the way, and so does the education system – the current high-school students are better prepared to find and replenish gaps and shortcomings.
- Barriers coming down: More and more students worldwide are gaining access to top-notch campuses where diversity has been an opportunity instead of a challenge.
- EdTech companies tend to be strongly creative, energetic and enthusiastic – they have an entrepreneurial impetus in Silicon Valley.
- Collaboration: EdTech does not replace teachers and educators; instead, it incorporates and uses them together to produce the best performance for students. It disrupts the approach of a lone teacher and encourages active peer and community learning.
- Information pooling: technology frameworks empower individual students to tap into established expertise without having to reinvent something.
The Changings in the World’s Financing:
Of course, more investment is behind the recent upturn in ed-tech growth. Whereas a combination of private and local governments have provided the majority of investment, venture capitalists and the subsequent expenditure surge have intensified their presence on the EdTech industry in recent years. Investment in risk management rose by $6 billion from just under USD 2 billion to more than USD 8 billion between 2014 and 2018.
The key cause of this spending boom, maybe not surprisingly, is China. In 2018, China accounted for 50 per cent of all spending on risk management and four out of the five biggest investment deals were entered into in China during the first half of 2019. The most recent report also indicates that the cumulative investment in technology in China and India has risen to 70 per cent.