Is there an ed-tech investment bubble?

Friday, February 21, 2014

And there are algebra games. Oh yes. Many, many, algebra games.

The explosion of ed-tech startups in the last five years has led many to speculate we're approaching peak ed-tech. The word "bubble" has been thrown around. Venture firms invested around $600 million into ed-tech startups in 2012, which is approximately four times as much as they did in 2002.

Meanwhile, industry observers aren't terribly excited about the most latest ed-tech innovations.

"I don't need another algebra app," said Peter Cohen, president, McGraw-Hill School Education, speaking at the recent DeSilva & Phillips Dealmakers conference in New York. "I don't need another one. Everyone in Silicon Valley thinks they've created the first algebra app ever. That's not actually the biggest problem, although algebra is a problem," he said.

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