“Why does all analysis of EdTech always focus on funding over revenue?”
I was recently asked this question.
Firstly, I wouldn’t say “all” and I wouldn’t say “always” but I believe I understand where the question was coming from.
I think the EdTech space is inherently different to the B2C market, for example, because it isn’t necessarily quite as profit-driven.
And there simply is more “funding” available because a significant portion of education is driven by government or charitable organisations.
There are financially successful EdTech companies for sure, but even those companies generating revenue and profit are often benefiting from legislative “funding”, perhaps a couple of steps removed.
For example, in the apprenticeship space in the UK, there are successful EdTech companies turning a profit, but the training providers they are making money from are only making *their* money because of legislative funding rules which help pay for the apprentice training.
Compare this with a company like Netflix, and the whole game is different. Netflix are competing for consumers’ disposable income.
EdTech companies are rarely making money from the “consumers” which are, in this context, learners.