5 Challenges of the EdTech Industry

3 min readAug 9, 2022

Since the beginning of the decade, edtech has grown at a rapid rate. Considering that global lockdowns have disrupted traditional face-to-face teaching and learning methods, it is no surprise that the industry is seeing a boom during and post lockdown.

As a result, what was incredibly traditional and reserved has been modernized and livened up and has become a modern and vibrant industry. The edtech space has no shortage of opportunities, but in order to build and grow an edtech company, there are several challenges to overcome.

Here are a few of the challenges that the EdTech industry faces-

1. High-competitive market

Education Technology is a highly competitive market, and your unique value proposition is what makes you stand out. At the beginning of your company’s journey, you might consider narrowing your target audience by focusing on a particular niche. Alternatively, it could be a specific subject area, like a maths learning platform, driving theory test software, or one specific teaching format — such as videos and games.

2. Revenue models to choose

Your go-to-market strategy must include choosing a suitable revenue model. Still, this decision is particularly critical for those in the edtech industry due to the prevalence of slow monetization challenges which are prevalent in this industry. In order to grow and succeed, you need to choose a revenue model that directly impacts your acquisition, conversion, and retention rates.

3. Adaptability

As the oldest sphere of human knowledge, education is one that has stood still for a very long time. A significant characteristic of this sphere is that it is eager for innovation and up-to-date developments, along with trying to ease the learning process for teachers and students to enhance the learning process. Teachers and administration, however, resist the change. It is common for schools and universities to be suspicious of technology. That is something an education startup should change.

4. Analytics and AI

In order to provide effective business solutions, it is necessary to understand the results and measurable benefits the solution will bring to the customer. An important question arises about analytics, how exactly the benefits will be assessed, and what metrics will be considered.

5. Security of data

User privacy has been a hot topic, particularly during the pandemic. Universities and schools are concerned about the possibility of data loss when implementing edtech startup solutions to the educational process: the data can be sold, used for advertising, and tracked.

You’ll be able to see the potential of your product from different angles and broaden your mind when considering the above difficulties and your edtech business will soar by overcoming these common challenges, not only in the competitive market of e-learning but also in the market of SaaS in general. Keep in mind that this isn’t a one-off move. As your product grows, expands, and develops over time, each of these points can be considered again and again.

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