High-tech tutoring: Big media, big start-ups and big money

Stefanie Botelho's picture

The $7 billion market for tutoring services is in the midst of a transformation, driven by new technology. And it's not just nonprofits like Khan Academy and for-profit online schools like University of Phoenix that are making it happen.

"Tutoring tends to be a very labor intensive business. But you don't need tutors in every city to be a national business anymore. Now, thanks to technology, it's easier to scale than ever before," says BMO analyst Jeff Silber.

In the first half of the year, $423 million was invested in 53 different education-based companies, according to the National Venture Capital Association. If the pace of investment continues, 2014 will be the highest annual investment in education companies ever.

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