What Consumer EdTech Companies Need To Get Right

What I look for in an EdTech company.

I believe that value in education comes from three places; (1) Content, (2) Certification, and (3) Community. Successful companies that will generate enduring value have to get at least two out of the three right. What’s more important, though, is that they over-deliver by 100x on at least one.

Content

This is your curriculum. It needs to be exceptionally made with high production quality that will keep users engaged. Online education has a dismally low completion rate (<10%). This speaks to the fact that the industry has historically not focused enough on student outcomes. By investing in great content, made for digital, delivered in an engaging medium, companies will drive good outcomes. Good outcomes drive happy customers, which drive repeat purchasing and word of mouth. Examples: MT Copeland, MasterClass, Mystery.org, Homer

Certification

Your service should unlock something for people. Lifelong learning is all well and good, but it’s hard to create a business out of that. MasterClass has nailed it by investing so much in exceptional content. But for most companies, leveraging and delivering certification will help you fill a real need. Think about college credits, skills certification, trades workshops. What helps people get to the next tier of education, or unlock better job prospects? Deliver that in an innovative and convenient way. Examples: Outlier.org, LinkedIn Learning, Target Test Prep

Community

Finally, what is the network that is elevating the experience here? Community should not be treated as a nice-to-have that sounds good to investors. Founders should have a perspective on the purpose of the community, what value it provides, how it differentiates their experience, and a path to provide that. Too often do founders lack a real perspective on fostering valuable community. One of the chief reasons MBA programs are still competitive to get into is because of the network. Programs like OnDeck are disrupting this and I would love to see more EdTech companies generate stronger strategies and roadmaps for improving the community experience. Examples: On Deck, Daisie, Cariclub