The concept of Edtech began in the 1960s to teach spellings and arithmetic to elementary level students with the help of computers. With the increasing use of the concept, the education material has changed from books and notebooks to digital content. It has significantly improved the old education system. Considering its popularity and future scope, investment in an EdTech firm proves to be a profitable venture. So, let us look at how you can set up an Edtech startup firm.
EdTech is basically a practice that introduces information-technology tools into the classroom for creating an inclusive, engaging, and individualised learning experience. It comprises learning platforms, webinars, authoring tools, mobile educational apps, and a lot more.
EdTech is a broad term that defines software that aims at improving tutor-driven learning in classrooms. It is seen to be effective at enhancing the academic result of a student. The method customises the academic curriculum in accordance with the learning ability of a student. It introduces and reinforces new content slowly and gradually to match the learning speed of a student.
Will it be Lucrative to Set Up an EdtechCompany?
The global investment in EdTech has shot up to $9.5 billion. With the huge development in the EdTech business, several investors are tempted to launch their own startups in this field. Some of the top EdTech firms are China-based Yuanfudao, BYJU, Vedantu, and more.
The main reason behind the exponential growth of this sector is the increasing demand for EdTech, especially after the coronavirus pandemic. A majority of universities made a shift from classroom-based teaching to online courses.
Another feature that makes it appealing is that the audience EdTech isn’t just school or colleges. It is also useful for corporate learning in large-scale corporations. These courses are beneficial to hone the skills of the candidates and help them pursue online certifications.
How to Launch an EdtechStartup?
EdTech is a Life-Long Learning Process that makes it essential for learners of any age. It reduces the cost of learning over a period of time. The best part is that its market hasn’t saturated yet. Endless new opportunities are waiting for start-ups who want to setup EdTech. So, here are the ways to start an EdTech startup:
Research Your Market
Begin with an understanding of who will be the end-users of your product and service. It can be students, teachers, corporate professionals, etc. Spend time to research the market. Attend teaching conferences, hosting focussed groups, and Edtech conferences to get a clarity of who will be your target audience.
Find the Problem and Way to Solve it
For a successful EdTech startup, you must understand the problem that students are facing at present in the field of academics. You should ensure that your software will help solve this problem and make life easier.
Find a Talented Team
To offer the best level of services to your viewers, you must form a team that comprises hardworking and dedicated individuals. Work with the ones, who are dedicated, reliable, and have solid conceptual knowledge.
Create a Business Model and Specify Realistic Goals
EdTech is a life-long learning process. So, think about the current, as well as the future, when it comes to preparing a solid business model. Put in quality time in setting short-term as well as long-term goals and a solid business model. Take time to research and plan your business model. Understand the market, your product, as well as the expected cost.
Make Arrangements for Funding
Following are how you can obtain money to fund your start-up.
- Bootstrapping, where you pay from your own pocket. It may be a risky option but gives you complete authority over the decision-making process.
- Loans, where you get the assistance of the bank, state, and government-approved lenders to fund your project.
- Investment, where you obtain funds from investors and give them a portion of your stake in your company.
- Grants, wherein certain educational organisations offer grants to businesses that set up a start-up that aids in educational initiatives. The benefit of this scheme is that you do not have to pay the grants back to the organisation.
- Crowdfunding, wherein you get small amounts of money from several people in exchange for a non-monetary bonus. It is payable only when the service goes live.