Learning Apps Move From the Classroom to the Workplace
It would seem that, with over 3,900 learning apps accessible to classrooms, the K-12 edtech market is flourishing. But a New York Times article published earlier this month states that rising edtech organizations are beginning to look outside the classroom for their target audiences.
According to research from CB Insights, companies catered toward the traditional K-12 edtech industry are branching out to professional training to strengthen their revenue. Many of these more traditional edtech startups face hiccups going through school systems, especially with budget cuts and adoption issues, and the industry has yet to see a groundbreaking model that can act as a lucrative template for future startups in the k-12 education space. But, if the companies’ software models can be adapted to cater to professional training markets, they might be able to create enough revenue to support production costs.
For instance, Instructure introduced the education management platform Canvas to colleges and universities in 2011. They are now expanding their marketing strategy to incorporate employee training, and are expecting to gain more revenue as a result. Since going public this past November, Instructure has been at the top of the market with a capitalization of about $490 million. The chief executive at Instructure attributes this to the fact that higher fees are charged to corporations, while schools cannot do that kind of calculation.
Investing in professional learning goes straight to an outlet which can provide revenue that school systems can’t. When they directly invest in corporations, startup organizations can avoid the bureaucracy hiccups that may arise from going through school systems.
Sarah Samel is an Emerson College senior Writing, Literature and Publishing student focusing on young adult fiction. When she’s not browsing bookstores, she’s blogging or jotting down ideas for new poems and stories.