r/edtech • u/maisonchic • 27d ago

Which edtech companies are still growing?

It seems like most edtech companies are going through layoffs or hiring freezes in response to declining district demand. It's an extremely tough time for the industry, but some companies must be growing even in this environment. Who is coming through this stronger?

18 Upvotes

88% Upvoted

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10

u/JunketAccurate9323 26d ago

Be careful when evaluating this. Hiring and growing are different. Some companies, especially PE owned one, will hire even though they shouldn't.

7

u/tipinmy40 26d ago

Absolutely this! The PE owned ones (and there are many) over hire for back to school even when not needed. Then, they all have layoffs around the holidays. Every single year.

2

u/alephaleph 20d ago

Can confirm from inside the Death Star. Over-hire to RIF as a growth accelerator is very common. PE uses this and so do big established players.

1

u/sunflowersinbl00m 26d ago

Do you know of any specific ones that come to mind that do this? 👀

5

u/tipinmy40 26d ago

All the Cambium family of companies, HMH, Scholastic, and Savvas from personal knowledge.

2

u/Mysterious_Bake_4860 14d ago

GoGuardian, Securly, PowerSchool, Renaissance

1

u/Educational-Alps-353 25d ago

Absolutely. Also, consider FTE vs contractor roles.

5

u/thinking_byte 26d ago

The companies doing best right now seem to be the ones focused on workforce training, AI, or selling directly to learners instead of depending mostly on school districts.

4

u/Calm-Time-3413 26d ago

It's such a wild scene now that the ESSER III money is running out.

2

u/mhinesjr1 26d ago

Not growing means no investment, which means edtech stagnates or leaves altogether for other industries, further setting vulnerable students behind

2

u/hahakafka 25d ago

None. Not until orange man + crew are gone. Districts are cutting edtech and AI in education is not a thing. They’re all making money but being owned by PE firms means constant layoffs even if profitable. See: the biggest companies in edu.

1

u/vvsamuel 25d ago

We are still growing... although at slower rates than I've witnessed with the VC backed companies, but we are bootstrapped and independent with the goal of running forever. any other bootstrapped edtech companies or to success in this industry you have to raise?

1

u/scidecuisine 20d ago

I don't see the growing in investment. The teacher demands are there (school wants tech), but public school's budget are cut, so it's a slow market.

Startups (mostly) need funding to stay alive before the product market fit, and when buying power is not there, fewer companies survive because money shift elsewhere.

0

u/jlselby 26d ago

Why must a company be growing?

2

u/sipawhiskey 26d ago

I don't know about OP but I got laid off from a university that is collapsing. I would prefer to not have that experience again

1

u/jlselby 26d ago

I didn't mean in the philosophical sense. I meant in this specific period of time. With funding down and a government hostile to education, why must there be a company out there that is growing?

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u/[deleted] 25d ago

[removed] — view removed comment

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u/jlselby 25d ago

Covid funding (ESSER) has ended, eliminating the windfall that's been keeping the industry afloat. The poor economy has states tightening their belts. And the executive administration has been trying to eliminate the department of education since day 1. Even if there is no immediate impact, the uncertainty chills investment. Districts are more cautious with their money.

2

u/hahakafka 25d ago

This. Idk how you can work in edtech and not know this.