Fun fact: I discovered Brighteye Ventures long before starting Mathema.me, through their Substack. In a way, it’s funny that I’m now uploading this podcast here.
A few weeks ago, I had a coffee with Rhys, and we chatted about edtech and how VC fund theses evolve. I thought it might be of interest to my community, so I asked him if he would like to join the podcast. He kindly accepted.
Well, here comes my favorite part of post-podcast reflections — what did I learn from it?
How to build an edtech unicorn in 2024?
Going to the US is not the only option. VCs have started to believe it’s possible to build a unicorn within a single, well-defined market. Instead of spreading yourself too thin, focus on dominating one relatively large market. For example, consider the largest driving school in France.
It is not only about K-12. Consider problems adjacent to traditional edtech, such as training in highly regulated industries with strict compliance requirements.
Prove you are VC-backable. The decline in valuations for Byju’s and GoStudent hasn’t made VCs less bullish on edtech (though personally, I see the opposite trend). However, when it comes to solving for K-12, it’s increasingly difficult to prove that your company can reach a scale suitable for VC backing.
Edtech VCs are expanding their investment thesis. Make sure you keep up with these changes to understand which way the wind is blowing.
How to grow organically?
Building communities around EdTech: Community-driven growth is gaining traction in edtech. For instance, StudyStream fosters student motivation through online study communities, while tools like Magic School AI are rapidly growing by building teacher communities. These models leverage word-of-mouth and community loyalty for organic growth
Intersection of EdTech and FinTech
Potential for Innovation: The combination of edtech and fintech holds potential, though solutions are still in development.
Challenges in Content Moats: Building defensible content around personal finance education is challenging. Platforms like Female Invest are innovating by combining financial literacy content with community-driven engagement.
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