4 Reasons Why Investors Love eLearning Startups

4 Reasons Why Investors Love eLearning Startups
Summary: A country's economic growth depends on a lot of factors. The education system, of course, tops the list. So it's easy to understand why it gains so much attention from the investors. In today's article, we are going to have an overview of the top 4 reasons why investors love eLearning startups.

eLearning Startups: Why Investors Are Growing Keen On Them

One look at the statistics related to eLearning and you would observe that the global investment in this segment has gone up by 30% over the previous year. The current investment for eLearning is close to $9.52Bn. In 2017 alone, 813 EdTech companies were funded by top investors.

Going beyond classrooms, EdTech has embraced a wide range of possibilities. As a result, you can access education while on the go, and keep improving your skills.

A few trends that redefined eLearning as we know it, include:

  • LMS or Learning Management Systems is a $182Bn market and is likely to hit $240Bn by the end of 2023. A lot of US companies and institutes have rooted for the LMS way of learning, and offer various training to improve the skills of the students and employees.
  • The next trend that needs to be talked about at this juncture is mobile learning. A lot of education-related apps are paving way for mobility learning and enhancing the user’s learning experience.
  • Video learning is the next-gen trend that has improved the quality of EdTech and education in general. Each concept is minutely broken down into content that can be easily understood by the users.
  • Gamification in learning will make learning more interactive and engaging for the audiences. You are awarded for whatever you learn or for the chapters you complete. This increases the competition level, and as a result, the students tend to learn more.

With VR being incorporated into education technology in order to make it more interactive and personalized, the trends are definitely getting better. Here’s a look at why investors seem to be keen on investing in education technology companies.

1. Interactive And Interesting Classes

Most of the investors are looking at concepts that can transform how people interact and how students learn. That’s the way the new EdTech startups are working. These startups are trying to reinvent the education system as we know it, and are trying new ways to get parents and students interested in learning. The whole idea of making learning easy for the students, and teaching fun and interactive for the parents has gained attention from the investors.

2. Gaining More Acceptance

The EdTech industry and the supporting apps and systems have gained acceptance from the parents and teachers. The parents are ready to invest in the devices, as well as the apps, if it makes learning easier and seamless for their children. Knowing that EdTech is the future of the learning industry, investors are ready to make investments. They know that the Return On Investment is going to be higher if the idea works.

3. Going Beyond Classroom

The EdTech industry and the startups have taken education beyond classrooms. Let’s say you are a startup attempting to use VR or mobile application to explain concepts related to physics to your student. The app that you use will eventually become popular, as the kids will relate to your content. Moreover, they can access your content on the go, which makes your content more acceptable in modern times. This going-beyond-the-classroom will help the startups gain more visibility and reach, which will help them reach out to the investors as well. Knowing that the startup has the power to make content accessible – and has adopted all the latest trends – will definitely attract more investors.

4. Closing The Gaps

Many investors are interested in closing the gaps that exist in the industry. That is true for the EdTech startups too. If a startup has successfully managed to close the existing gaps in the industry and has come up with a solution that will close the existing gaps and make education simpler and accessible to the mass audience, then the startup will gain traction from the investors. They simply want a successful idea converted into an able solution.


As a startup, you need to follow some of the points listed below, if you want the investors' attention

  • Rethink education as you know it. If you have an idea that can make education simpler for those accessing it, take some time to think how to convert it into a solution.
  • Experiment with students. Make sure you reach out to as many students as possible before rolling out your EdTech startup. If the students are impressed, your startup is good to go.
  • Finally, partner with other education startups which will help you gain some name before you start out.

Once you are ready with these three points, you are ready to reach out to maximum people and improve your reach. With time and the success of your idea, investors will reach out to you.