EdTech Might Turn Out to Be a Lucrative Investment in the Future

With the global pandemic wreaking havoc and everyone staying indoors, demands for several online services went up. Platforms like Netflix grew immensely and gained millions of users in just a few months. Social media apps also gained as usage increased. The demand for laptops and PCs increased as people set up work from home offices to deal with the unprecedented event. But there was another market that gained immensely because of the pandemic and that was EdTech. Just like the previous year the specialist investors are still bullish on EdTech, in fact, more than they ever have been in the past. 

EdTech was once not as popular or successful but things have changed with the growing demand to learn online. The pandemic has fueled this demand unexpectedly and now we have more people looking to learn online than ever before. This has been the reason that the sector that was once undercapitalized has brought in $10 billion in venture capital funding in just one year. Investors believe that EdTech is one biggest consumer opportunities as people need to consistently learn and evolve in coming decades to stay relevant in the job market. The need to upgrade skills will bring in more and more people to EdTech.

However, there is also a feeling among the VCs that EdTech’s don’t enjoy the same valuation as other sectors. Despite the recent revitalization, EdTech’s seem to struggle when compared to commerce, consumer, and fintech, who are much more profitable in investor’s eyes. So, a major challenge for EdTech will be to prove just as valuable as the other top sectors to get more funding in order to grow.

Although valuations aren’t the only basis to judge EdTech they are still important. The future is bright for EdTech. There are also challenges that they will have to deal with. At present, it might not be as valuable as other sectors but there is still scope to use the unique opportunity that it has. Investors know the importance of EdTech and they see it as a profitable investment but what can we expect in the long run? EdTech will likely grow much more than what investors have speculated and surpass some of the top sectors as of now. It won’t be easy but underestimating EdTech will be a mistake.

Eva winget is a Microsoft Office expert and has been working in the technical industry since 2006. As a technical expert, Bella has written technical blogs, manuals, white papers, and reviews for many websites.

Source: EdTech Might Turn Out to Be a Lucrative Investment in the Future