Raising Funds Basics for EdTech Startups

E-learning has been used as an alternative to traditional schooling. However, when the coronavirus pandemic hit the world, many learning institutions decided to close. Due to the pandemic, remote work and homeschooling became more common. E-learning also became more prevalent. Schools started offering online education.

Due to the increasing number of investments in e-learning startups, the education sector is expected to grow. This is the ideal time for entrepreneurs to launch their companies that provide mLearning and e-Learning tools that are enhanced with augmented and virtual reality.

• Learning Management System (LMS)
• Language learning platform
• Gamified learning Apps
• Career development Apps
• MOOC portals
• School administration
• K12 education Apps
• Test preparation platform

The development of educational technology, also known as EdTech, is a broad field that involves the creation of software and technologies that help improve the learning process. A learning management system is a type of software that helps schools and teachers plan and implement educational courses. It can also provide various features such as video delivery and grade books. Immersive technology, which includes virtual and augmented reality, can provide a more hands-on experience when it comes to learning. These platforms allow students to explore a particular subject through high-quality content. Massive open courses, also known as MOOCs, are online platforms that allow students to take courses in different countries. They can additionally provide various tools and resources to reinforce the learning process.

Institutional Investors

Some of the world’s most prominent educational institutions and corporations are also known to finance innovative ideas. They can additionally launch their own e-learning startup or buy a company that has this unique concept. With the backing of these organizations, an e-learning startup can easily develop and promote its products. It can also access the necessary financial resources to expand its operations.

However, before an entrepreneur enters into a partnership with a large educational institution, he or she must make sure that the partnership does not have a lot of internal bureaucracy. This will affect the startup’s decision-making process and prevent it from developing effective partnerships.

You can check out this link for references: https://iltpp.org/in-the-news/10-upcoming-edtech-grants

If you would like to learn more about local and International institutions that can fund your startup, get in contact with EdVentures team.

Venture Capitalists

A startup that has identified an issue in the digital learning industry and has a unique approach or solution can attract a significant amount of funding and support from a venture capital firm. Despite the various factors that can affect their decisions, venture capital investors and firms can still be very selective when it comes to investing in an EdTech business. They want to create successful companies because it’s where they can make the most returns.

Check this link for a list of Egypt/MENA VCs: https://www.wamda.com/2016/09/complete-list-egypts-startup-investors

Angel Investors

You can reach out to potential investors in the education industry through various platforms such as AngelList or direct contact with them. However, investors in this sector can also refer you to other investors who are looking to diversify their portfolio. Some investors in the EdTech industry believe that the pandemic is an opportunity to create new e-Learning platforms. They would also be willing to invest in startups that are developing these products.

Crowdfunding

Getting a single investor that can provide you with a huge amount of cash may be a daunting task. However, this is also due to the potential risks involved in the development of EdTech. Besides investing in startups, an EdTech startup can also get funding from various sources. For instance, educational institutions can provide funding for their e-Learning programs. If you are still in the process of securing investments, you can still register for platforms such as Kickstarter and Indiegogo. These allow people to give back to the community by donating their funds when you sell or distribute the products.