Skip to content

The next generation of education - The booming US market

The digitization of the educational sector and the need for  EdTech solutions has increased and gained speed. EdTech is here to stay, and both the American Investors and the educational industry are very well aware of it. 

Setting the scene for the EdTech revolution

 

Like many other traditional industries, the Higher Education sector is faced with a new reality pushed by technologies’ digitizing our everyday life. The modern human being is accustomed to a high level of personalization, accessibility, and interactiveness that does not align with the traditional form of education dominated by one-to-many one-way communication, psychical classes, and predefined curriculums. The Higher Education sector in the U.S has for years been at the forefront of revolutionizing the industry, collaborating with EdTech startups, and using their own world-leading research centers to create new solutions. The pandemic has promptly enhanced the need for innovative EdTech solutions, even more, accelerating the digitization of the Higher Education system. This becomes even more clear, when following the money.

 

 

Large investments in EdTech start-ups continues

 

The American investment ecosystem has been ramping up its investments in EdTech companies for the past five years. 2019 was a record-breaking year for the industry with approx.t $1.7 billion raised in venture capital by 105 companies in the States. The industry is especially booming in California where almost 1/3 of America’s 1,528 EdTech companies are placed, 302 of those with a base in Silicon Valley. During Q1 and Q2 of 2020, Edtech in the US has already raised more than $803 million in venture capital. The investments are coming from both specialized EdTech funds such as Learn Capital and Rethink Education, as well as accelerators such as 500 Startups. To this date, 360 investors and VC’s from Silicon Valley alone have invested in at least one EdTech start-up.

 

The pandemic has without doubt accelerated the demand for strong EdTech solutions in the Higher Education segment in the States. By end of July 2020, 44% of all colleges in the States had announced, that the fall semester would be either fully online, partly online, or a hybrid – 26 percent still being undecided. However, some of the biggest Universities have been working on innovating the education system years before the pandemic struck. Stanford School of Engineering has for example already digitalized much of its course material with a built-in option for including videos explaining core theories in the text as well as including a digital tracking function that allowed lecturers to monitor their students’ interaction with the course material to identify particularly challenging sections. Also, MIT has created the interactive online learning platform MITX, where the online courses feature multimedia and video content, embedded quizzed with immediate feedback, online laboratories, and peer-to-peer communications.

 

 

The American dream for Danish EdTech start-ups

 

Nevertheless, the Higher Education sector in the States does not only rely on University developed systems. Colleges and Universities are increasingly investing in, buying, and using EdTech solutions from start-ups all over the world. In the past years, Danish EdTech start-ups have successfully entered the market, with companies such as the interactive advanced lab simulator Labster who has raised $43.7 million to date with clients ranging from California State University to Stanford online high school. In 2017, the team from the Danish feedback platform Peergrade’ moved to San Francisco for a couple of months with the goal to enter the US market. Today, over half of Peergrade’s users are in the US. The Danish EdTech start-up Area9 also received a record investment of $30 million from the Danish Growth Fund, which is considerably larger than any other investments given by the fund. The investment was given to Area9 to support their international growth journey. 


The Danish didactic teaching methods and tradition for lifelong learning give Denmark a distinctive advantage point in the US market, where some of the biggest trends are interactive, personalized learning, and bridging the knowledge and competence gap between education and career. There is a lot to gain for Danish EdTech start-ups by looking across the Atlantic Ocean and exploring their opportunities in the American market. However, while the American market offers huge opportunities it is also complex and difficult to approach. Therefore, the Innovation Centre Denmark offers specialized counseling to Danish EdTech companies who need help exploring the American market. Contact our advisor Daiana below to learn more about how we can help you.


CONTACT Want to know more?

Please feel free to reach out to our dedicated advisors to hear more about the competition and how you can participate.
Loading...