Experts predicted that the pandemic of 2020 would be a catalyst for EdTech industry growth. In fact, Education companies that drove effective distance learning or safe returns to academic spaces experienced significant demand.
Market research leader HolonIQ has estimated that venture capital investment in EdTech reached a record $16.1 billion globally in 2020, roughly two times its previous high. They raised their 2025 EdTech industry revenue forecast by $63 billion, predicting a $404 billion global market size within the next five years, almost doubling the current 2020 expenditure estimate of $220 billion.
The Renaissance Network has experienced ten key learnings from an unprecedented twelve months in 2020. Here are five compelling insights about the rapidly evolving EdTech market and five valuable observations from a hiring and organizational perspective.
EdTech Continued to Evolve During COVID 19
- Accelerated transformation of many Education companies. With pressure from the market and users, many EdTech and Education companies have reinvented themselves from physical service and hardware companies to virtual engagement and software providers. Beyond a different or evolved offering, this requires new value propositions, pricing models, marketing approaches and sales expertise.
- The predicted death of physical textbooks is not materializing. The huge increase in distance learners has laid bare the issues in broadband access and differences in individual learning needs. Printed tools are still required for effective reach. The most successful learning approaches are often blended digital and physical solutions that ensure critical equity and access considerations are taken into account.
- EdTech and Education suppliers provide critical solutions to supporting wellness and mental health. With the pandemic, students and teachers are faced with increased anxieties from social isolation, reduced extracurricular activities, and ailing friends and relatives. Those companies that provide digital coping tools for students, curriculum opportunities for wellness educators, and social monitoring tools for administrators and parents are experiencing high demand and market need.
- EdTech MedTech is a growing mash-up of the Education and Medical Technology verticals to support safer schools. As the pandemic progresses, schools are under increased pressure to protect students, teachers, and staff from infection. Districts and institutions are looking to app-based monitoring tools to provide information and create greater connectivity among the school and district-wide community. In addition, new academic disinfection protocols require specialized equipment designed to sanitize the surfaces and air in the uniquely busy school environment.
- Homework has shifted to homeschool. Concerned with their children’s current distance learning experiences, parents are augmenting the education provided from traditional physical schools with new solutions and online communities once reserved for homeschool and after school. In addition, the Homeschool market offering has become relevant for a much wider audience as teachers need to find digital and physical products that help students learn and engage from their own houses.
The Rush to Remote Affected Organizations and Hiring
- Hiring strategies were affected by restructures, mergers, and acquisitions. As companies faced a changing Education landscape in the early days of the pandemic, they initiated organizational transformations and balance sheet “shore-ups” to position for the future. In addition, faced with uncertainties and new opportunities, employees had to consider their next steps at an accelerated pace.
- Increased globalization as EdTech firms embraced “pure remote” models. Education innovators leveraged nationally and globally dispersed teams for access to talent and the benefits of diversity. Companies filled key position gaps across borders targeting proven growth leaders and securing education industry experience.
- The tension point between the success of remote employees and the positive attributes of a physical office team. While some organizations concluded that the concept of an in-person office had been blown up, other firms followed data that showed productivity and culture can suffer when employees are remote and isolated. When it comes to the C-Suite, most companies still require that senior leaders move and work full time at the company headquarters, including permanent relocation.
- A major shift to video interviewing and final decision making. The skillsets for remote interviewing are still being developed by companies and job candidates alike. Hiring managers are noting a new insight: how potential employees “present” in online interviews reflect on their ability to communicate in new digital mediums to future customers and stakeholders.
- Stalled revenues and delayed hiring plans shifted to record solution use and rapid recruiting needs. After a reactive second quarter that included a rush to provide “freemium” offerings, EdTech firms realized 2nd half sales growth and looked to fill key positions across all disciplines, including leadership, sales, marketing, product development, and implementation.
Leverage the Insights of an EdTech Focused Talent Acquisition Firm
The growing and evolving market for EdTech offers providers an opportunity to shine. When your organization recognizes the need to hire and is fully staffed with the right people, it will be positioned to best serve an ever-growing customer base.
If your organization needs to hire talented EdTech professionals, The Renaissance Network (TRN) can help. TRN has been assisting organizations to source specialized talent in the education technology space since 1996, working closely with clients to understand and meet their needs.
If you want to leverage TRN’s insights to accelerate your organizational growth plans, contact TRN today!