The article also highlights the challenges faced by edtech companies, including the need for AI talent and the potential for a tough M&A environment. However, some investors see a silver lining in the form of acqui-hires of AI teams across edtech sub-sectors. The piece also discusses the B2B vs. B2C debate in edtech, the future of edtech in emerging markets, and the market opportunity for AI products. The article concludes with insights from various investors and industry experts, who share their views on these topics and their predictions for the future of the edtech sector.
Key takeaways:
- Edtech startups have been quietly busy, especially with the incorporation of AI, despite a downturn in popularity since the pandemic.
- Investors predict a boom in edtech in 2024 due to advancements in AI and the need for re-education as AI disrupts various industries.
- AI integration in edtech needs to enhance an already robust product, rather than simply labeling a product as edtech. This requires talent that edtech companies might currently lack.
- There is a debate on whether the current market is more favorable to B2B or B2C models in edtech, with some investors noting that B2C is harder to monetize as people are trying to save money.