"And This Is Why We Can't Have Nice Things..."

Audrey Waters:

LearnBoost launched at the beginning of this recent resurgence in ed-tech entrepreneurialism, and in many ways, I thought it encapsulated much of the promise that new ed-tech startups are supposed to hold: great technology, great product, great team, grassroots adoption, freemium pricing, and so on.

To me, Corrales' departure now serves to highlight some of the serious tensions, if not grave problems, that this new "ed-tech ecosystem" is facing. Indeed, what sort of "ed-tech ecosystem" are we really building here? Will it thrive? Which startups will survive? Whose values does this "ecosystem" reflect?

On VC-Backed Companies and Expectations for Growth: What happens when a startup raises venture capital? What happens when it raises a little bit of capital (e.g. LearnBoost)? What happens when it raises a lot (e.g. Edmodo)? Do the expectations of investors -- for growth, for revenue, for a "return on investment" and for the timeline in which that will happen -- match the needs of education (particularly public education) (e.g. Coursera)? Are investors looking at the right signals (growth in signups versus, say, intellectual growth of users)? Can venture-backed startups build long-term, sustainable, non-exploitative businesses in education? Or is "the exit" always on the horizon once VCs get involved?

On Business Models and Marketing: Can startups really be "lean" and find success in building for and selling to schools? Can a startup afford to eschew building a giant marketing team? And can education afford an ed-tech industry that cares more about marketing than product? Is the freemium business model, combined with grassroots user adoption, a viable path to sustainable revenue, particularly when startups are up against those enterprise corporations with deep pockets and deep talons -- contracts, licenses, and so on -- deep into schools and districts?

Posted by Jim Zellmer at March 15, 2013 2:08 AM
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