As students return to classrooms for the new academic year, it’s noteworthy to consider the minimal changes in education over recent decades. The presence of laptops and interactive whiteboards falls short of significant disruption. Parents, accustomed to their children’s modern shopping and socializing habits, may find the unchanged methods of teaching less remarkable.
The education sector continues to lag behind in digital adoption, with American schools and universities allocating only 2% and 5% of their budgets to technology, compared to the 8% spent by the average American company. Despite the vast $6 trillion global education spending, the tech industry has sought a more substantial share.
When the pandemic necessitated closures, there was an opportunity for a digital transformation. Students turned to online learning platforms to supplement traditional Zoom classes, leading to significant market value increases for companies like Chegg, which rose from $5 billion to $12 billion. Biju’s, an Indian counterpart, reached a private valuation of $22 billion in March 2022 through acquisitions worldwide. Global venture-capital investment in education startups surged from $7 billion in 2019 to $20 billion in 2021, according to CrunchBase.
