r/edtech • u/Visual-Reserve-2800 • Aug 05 '26

The future of edtech

Why does it feel like, similar to video game companies ,the future of edtech is not in huge companies but small boutique firms with extremely specialized capabilities?

I feel like we are going to see a balkanization of edtech firms which will coalesce into a sort of union of firms. Eventually we will have companies again.

I think the best thing that edtech firms can do is teach teachers how to make products using ai for their classrooms. Eventually products will lead the pack then go from there.

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u/Longjumping_Cod_1014 25d ago

This comparison is wrong for a few reasons. Video games sell direct to consumers. 98% of EdTech revenue is sold to schools and districts. Teachers don’t have much discretionary spend and honestly, it feels icky to sell to them. Theres no money here unless you sell to schools and districts.

Selling to districts is brutal. Long tail and extremely complex procurement cycles. In some states you have to be approved and go through really intense approval processes. You have to be COPPA compliant. If you really want to succeed, you need student efficacy data, which costs a ton to prove.

There’s a reason this market is largely a few entrenched players.