The world of education is constantly changing, but one thing remains true: knowledge shapes our lives and societies. Over the past nine years, Owl Ventures has been at the forefront of innovation in the edtech sector. With offices in the US and Europe, and an international portfolio of over 80 firms, the venture capital fund has amassed a total asset of $2 billion under management.
Recently, Owl Ventures released its Education Outcomes Report 2023, which outlines the key emerging trends and impact of edtech across the various education sectors, including Pre-K12, Post-Secondary, and Career Mobility. Let’s take a look at what the report had to say about these sectors:
Pre-K12
The Pre-K12 sector has seen a lot of progress despite the difficulties presented by the COVID-19 pandemic, such as learning loss, teacher shortages, and mental health issues in students. With investment from the US and international policies promoting global growth in edtech, this sector is primed for even more innovation.
Post Secondary
The digital revolution has had a significant impact on post-secondary education, with 48% of students preferring digital learning. More governments are appreciating the value of online education, with a huge increase in the number of Indian online degrees as evidence of this. Employers also view online credentials as equally important as traditional credentials, with 88% of institutions treating them the same.
Career Mobility
The ever-changing workforce, combined with digitisation and the effect of the COVID-19 pandemic, have resulted in rapid transformation of the labour market. Technology is projected to change nearly 1 billion jobs worldwide in the next decade, with 7.4 million job openings in the US. To bridge the skills gap, consumers and enterprises have invested around $1.5 trillion in education and training in the exploding global corporate training market.
Emerging Trends in 2023 and its impact on the edtech ecosystem
The Edtech Outcomes Report 2023 has identified several emerging trends which will have a huge impact on the edtech ecosystem. These include:
Upskilling: Automation, AI, and digitisation mean that traditional higher education is lagging behind industry requirements. Solutions like Degreed and UBITS can help people gain competencies, while skilled trades programs can help retain under-educated employees.
AI: AI is transforming education into a more individualised and cost-effective learning experience. AI-enabled edtech companies such as Amira Learning, Sizzle AI, and Workera AI are leading the way in this.
Early Stage Investing: Owl Ventures has been investing in early-stage companies, including pioneering startups like Newsela and Quizlet, as well as seed-stage companies like Ethiqly and ubiMaster.
Talent: Digitisation and AI have made it easier for top talents to join the edutainment industry. Companies such as Google, Meta, and Microsoft have teamed up with experienced entrepreneurs such as Rajen Seth, Jerome Pesenti, and Eran Megiddo.
Mental Health: With 42% of students feeling sad or hopeless in 2021, mental health is a huge issue. Companies like Coala, Hazel Health, and Panorama Education are working to mitigate these challenges.
International Acceleration: Owl Ventures has invested in 25 companies outside the US, with 20% of global edtech deals in the European market. Asia and Africa are also major drivers of the fast-growing markets.
These are just some of the trends identified in the Edtech Outcomes Report 2023. Educators and teachers should take note of these developments, as they could have a huge impact on the future of education technology. With the right approach, edtech will continue to play a major role in shaping the lives of students and professionals for years to come.
