3 Main Tips to Prevent EdTech Startup Failure

Every business faces its own share of challenges, especially when they are in its initial stage. EdTech startups are no exception to this rule. For instance, Sharp Scholar, an EdTech startup with a user base of over 5000 people, failed due to reasons uncommon for the EdTech startup industry. These included lack of teacher and entrepreneur empathy, failure to understand stakeholders, and obstacles to identifying the buyer.

EdTech can be a challenging industry to disrupt. However, it cannot be ignored that once this industry is disrupted, it can be one of the most profitable industries too. There are opportunities for growth for EdTech startups in this current economic environment. After the pandemic hit the world, there has been a dramatic rise in the demand for education software. Nowadays, with the physical closure of schools after the second wave, parents and students know the need for effective e-learning solutions.

Even schools have been buying a membership for their students to learn additional skills on websites like Coursera. Recently, Coursera announced that it has raised $130 million in additional funding from its investors. Moreover, Udemy reportedly raised new finance at $3 billion valuations. This data proves that there is sheer potential for new EdTech startups. This is mainly due to the realization by people that they don’t have to pay 1000’s dollars to get valuable education when they can get the same quality of education at a much cheaper rate.

Even though the market is crowded, breaking into this challenging sector is not impossible. Once this industry is disrupted, it will bring a significant return for investors. All you need to do is avoid certain mistakes that can lead to EdTech startup failure.

Knowing the educational system is important especially to discern the school challenges and comprehend the needs of the students. Take your time to study the system in order to gain insights on customer behavior. Schools are diverse, the traditions of each community vary, and different cultures demand different solutions. Entrepreneurs who enter into this innovative system must research these key aspects in order to cater to the challenges ahead. Make sure you use social media to conduct your research and to build relationships with its customers. You can consider Pinterest as a priority. According to USC Rosier Online, education pins per day climbed from 500,000 to about 1.3 million in 2015.

It is critical to have an educator on your team. Bring a teacher on staff for guidance, feedback, and credibility. Promote the fact that you have a certified educator on staff and provide independent research on your product. Publish research papers and case studies that prove your product adds value. If you have valid, independent research, share it as much as possible. The education system does not have the time or interest in researching the value of your product. Therefore, make it easy for your potential customer to see your proof of concept immediately.

MVP will prove to be an ideal product for EdTech startups that are looking to test their product in the market with a minimal investment. Startups are all about experimenting with your ideas in the real world and creating an impact through innovation and efficiency. Even though experimentation and taking risks is a part of starting a new venture, EdTech startups would benefit by knowing that their customers already exist before even building the Minimum Viable Product (MVP). This would minimize their risks and assure the future of their EdTech business.

MVP is a partially functional product with a minimal set of features that has room for continuous improvement and development. This will lead to a collection of real-time feedback from teachers and students.