Supporting EdTech Investors in Spotting a Golden Opportunity

Professor Rose Luckin and the EDUCATE Ventures Research team on the need for evidence in EdTech, the impact of EdTech tools and efficacy in the education & EdTech markets.

By Professor Rose Luckin and the EDUCATE Ventures Research team

Two years ago, my colleagues and I wrote a piece about the need for evidence in EdTech. We described how, unlike medical or food products, EdTech products can go straight to market without evaluation. Moreover, if there did happen to be evidence, there was no check on its validity. This state of affairs has not only created uncertainty around the impact of EdTech tools (both individually and collectively); it has also necessarily had the knock-on effect of deprioritising efficacy in a sector where it is desperately needed.

Until now, despite the efforts of many, and much to my surprise and chagrin, the education market has largely tolerated the absence of evidence. But change is afoot.

With lockdowns and the resulting experiments in online learning fresh in the minds of educators and parents, and a renewed sense of urgency around student outcomes, it is clear to me that things have changed. Routes to procurement no longer rely on word of mouth, schools are asking for clearer proof that a solution will work, and trust is becoming increasingly important in the buying process. In exchange for their money, and their data, school leaders and teachers want to see unambiguous evidence that products will work in the ways that they and their students need.

Both the EdTech market and the education ecosystem are growing. Holon IQ reports that $26B in venture capital has already been deployed over the last 18 months, and if projections based on last decade’s progress are any indication, that number might hit $150B by 2029. Given the colossal wealth poured into these education interventions, and the increased demand for bang for buck from parents, teachers, students and their institutions, a refocussing on evidence in the EdTech community is a priority.

“The time to double-down on the evidence is now.”

The EDUCATE Ventures Research team has been working with EdTech startups since 2017 to help them understand and use their data better — so that they can produce evidence about what works, and improve their product when they identify something that doesn’t. But what about investors? Have they kept pace with the customer in the hunt for evidence? How might a focus on evidence drive smarter investment decisions, for learners AND the bottom line? And what would it look like to have an EdTech investor ecosystem that championed evidence?

• Pre-investment, it might change how investors approach their pipeline. An evidence-led, or research mindset would become a highly valued attribute of startups — because attention to data and evidence from the start can help super-charge student learning and growth.
• During early investment, a focus on evidence would give investors a finer-grained view on the areas where a company really needs nurturing and support — helping them deliver the mentoring and acceleration that the startups in their portfolio need.
• And later, a research-mindset will pay dividends, as a company will have been able to improve their product AND produce valid and credible evidence about how and why it works.

Given the resources now available, and the many talented entrepreneurs ready and poised to make a real difference in education, the time to double-down on the evidence is now. There is very little to lose, and so very much to be gained.

Rose Luckin is Professor of Learner Centred Design at UCL Knowledge Lab, and Founder and CEO of EDUCATE Ventures Research, a research accelerator promoting the development of evidence-based EdTech products and services.

This article was originally published in the X Report — a monthly newsletter published by EdTechX which shares features based on current trends in the world of learning and training.