Edtech Thread👇
In Part 2 of @BlumeVentures' Edtech series, we deep dive into the ‘Continuous Learning’ sector. This includes any learning activity after formal education (school, college, & testprep) is complete.
Article by @sajithpai & me here: blume.vc/edtech-series-…
1/12
In Part 2 of @BlumeVentures' Edtech series, we deep dive into the ‘Continuous Learning’ sector. This includes any learning activity after formal education (school, college, & testprep) is complete.
Article by @sajithpai & me here: blume.vc/edtech-series-…
1/12
https://twitter.com/radhika_agar/status/1273879997019648000
2/ Why cont. learning?
- 2nd largest edtech segment after K12; big opportunity!
- Several biz models & users- B2B vs B2C; white collar vs grey collar; upskilling vs fun classes
- Learners range from 25yr olds to 60+yr olds - diff willingness to pay, motivations, world views
- 2nd largest edtech segment after K12; big opportunity!
- Several biz models & users- B2B vs B2C; white collar vs grey collar; upskilling vs fun classes
- Learners range from 25yr olds to 60+yr olds - diff willingness to pay, motivations, world views
3/ Cont. Learning includes both models:
- B2C (direct & marketplace) - caters to white collar & blue/grey collar workforce
- B2B (or unbundled B2B2C) - largely white collar; corp training, newcomer onboarding, etc.
B2B for blue/grey collar workforce is unorganized & limited
- B2C (direct & marketplace) - caters to white collar & blue/grey collar workforce
- B2B (or unbundled B2B2C) - largely white collar; corp training, newcomer onboarding, etc.
B2B for blue/grey collar workforce is unorganized & limited
4/ Within B2C, we classify learning based on its purpose:
-"Learning for earning" - directly impacts ones career / future study (eg: upskilling, certification courses, etc.)
-"Learning for yearning" - has no overt impact on ones career (eg: Spanish classes taken for fun)
-"Learning for earning" - directly impacts ones career / future study (eg: upskilling, certification courses, etc.)
-"Learning for yearning" - has no overt impact on ones career (eg: Spanish classes taken for fun)
5/ We estimate the overall Continuous Edtech market to be ~$1B by 2025, with much of the value (76%) in B2C learning for earning
Note - we have not looked at blue collar skilling in this calculation - pls refer to @BlumeVentures' Blue Collar thesis for more info.
Note - we have not looked at blue collar skilling in this calculation - pls refer to @BlumeVentures' Blue Collar thesis for more info.
6/ Why is Learning for Earning > Learning for Yearning?
- No measurable outcomes➡️hard to justify a high spend here
- Availability of free content➡️lower willingness to pay
- No 'need' to complete course➡️low stickiness
- Seen as 'luxury' edu product➡️ Largely India 1 market
- No measurable outcomes➡️hard to justify a high spend here
- Availability of free content➡️lower willingness to pay
- No 'need' to complete course➡️low stickiness
- Seen as 'luxury' edu product➡️ Largely India 1 market
7/ Cont. learning is no longer just about new skills - but also about networks.
Mentorship & networking are becoming key aspects of B2C learning for earning as they are now seen as ways to discover & apply for new jobs. Platforms that enable this are better positioned to 'win'.
Mentorship & networking are becoming key aspects of B2C learning for earning as they are now seen as ways to discover & apply for new jobs. Platforms that enable this are better positioned to 'win'.
8/ Signaling is key.
'Outcomes' in the space include new jobs, career changes, promotions, more $$
These need the learner to 'signal' to the employer that they have superior skills. Platforms that enable signaling (via certifications, referrals, etc.) will earn more user love
'Outcomes' in the space include new jobs, career changes, promotions, more $$
These need the learner to 'signal' to the employer that they have superior skills. Platforms that enable signaling (via certifications, referrals, etc.) will earn more user love
9/ Impact of COVID on B2C?
- Uncertainty about the job market➡️pressure to grow ones skill set & network➡️strong tailwinds for upskilling platforms
-⬇️time spent on travel/meeting people➡️many are turning to online 'fun' learning as a way to meet new people/engage themselves
- Uncertainty about the job market➡️pressure to grow ones skill set & network➡️strong tailwinds for upskilling platforms
-⬇️time spent on travel/meeting people➡️many are turning to online 'fun' learning as a way to meet new people/engage themselves
10/ Impact of COVID on B2B?
As employers move corp training online, there is room for disruption in a space that has not seen massive changes in a while.
Would be interesting to see plays like gamification, peer learning, unbundling, cross company learning here.
As employers move corp training online, there is room for disruption in a space that has not seen massive changes in a while.
Would be interesting to see plays like gamification, peer learning, unbundling, cross company learning here.
11/ Below are some of the pre-seed/seed stage non-Blume cos we find interesting in this space! If you're building something in this space, please write to us / apply on blume.vc/pitch
FIN/
Continuous Learning helps constantly improve the existing workforce & thus strengthens the economy. We believe this will be a high growth sector for a better part of the next decade, with more of the overall learning pie moving online
@sajithpai @BKartRed @BlumeVentures
Continuous Learning helps constantly improve the existing workforce & thus strengthens the economy. We believe this will be a high growth sector for a better part of the next decade, with more of the overall learning pie moving online
@sajithpai @BKartRed @BlumeVentures
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