Potential Reasons Why eLearning Startups are Funded Billions by Investors
The education system is the backbone of a nation and a progressive learning system can only eradicate poverty from the face of the earth. When the traditional education system is failing, eLearning platforms are gaining recognition among students and from the core education system. On the other hand, due to its timeless and borderless model, investors have started to love eLearning startups and investing billions of dollars. It is because investors see the real potentiality and a futuristic vision of the entire education system.
According to a report by TechCrunch, an Indian eLearning platform called Byjus has raised over 1.3 billion dollars of funding from the world’s most recognized investment funds. Even a lot of eLearning platforms have seen a huge surge in valuation. The Byjus was valued at 5.7 billion dollars last year, and recently they have got a 10-billion-dollar valuation from a South African investor. They are also getting a fresh US$400 million-dollar investment from that very firm.
In recent times, due to the COVID-19 lockdown, online learning platforms have seen a massive surge in student engagement and till last week the eLearning industry has recorded 1.3 billion learners on online learning platforms all over the world. There are many other items of news regarding eLearning platforms.
What do you actually understand from this two different news? There is every single reason in these pieces of information why investors love e-Education platforms in particular.
Becoming Popular and Accepted
The beginning of something is really tough and sometimes later if people see real potential in that startup, they become more and more interested. On the other hand, startups struggle a lot to get funding but once they have provided enough reasons to be invested, they are going to boom. In a similar manner, eLearning platforms are getting widely popular day by day. Though the EdTech industry gained enough recognition and has been widely accepted all over the world, yet in a few months, it has rediscovered the potential of this education model. Now investors can see where is the education industry moving with this eLearning model. It makes more sense to investors to make the investment in eLearning platforms so that they become part of something noble and profitable. It was not about students all the time, parents also had to accept this model of education. Currently, the COVID-19 has taught parents and students more about online learning platforms.
Classrooms are Getting interested and Interactive
E-Learning is not limited to videos only; it is providing a lot more interactive environment for students and all types of learners. Every time an EdTech startup comes to the market, they bring something innovative, and along with that innovation, the education system is being reinvented. From the beginning of the journey, the EdTech industry has seen a significant evolution in the eLearning system and waiting to make this more interactive and interested so that students learn in a better and easier way. Investment companies want something innovative that radically defines new technology and system, moreover they want a revolution. Since EdTech companies are becoming more and more innovative, investors are taking a very calculative step by investing in this new education system.
Closing the Gap Between Education and Learners
The eLearning initiatives are getting a high amount of investment from the world’s top investors because it is in the quest of closing the gap between education and learners. Meaning, a lot of people do not have enough money to start studying in institutes because the physical classroom education costs more than they can afford. On the other hand, sometimes we are unable to join a university depending on where we live and because of Visa problems. But in the case of eLearning, that gap between educational institutions and students are dissolving in the technology. Since there is no criticality between education and students, the number of students is getting high day by day, and having a million and millions of students is just a matter of time. This fact is much appreciated by investors because they see a better profit.
eLearning Goes Beyond the classroom
Considering the evolution of the e-Education investors see a lot of potentials among eLearning platforms. With the advancement of technology, the classroom has gone beyond just the classroom. What started with just normal PDF files, this platform has come a long way to use Virtual reality to teach students. This education system is not even stuck in virtual reality rather it has taken another leap with augmented reality. The way this industry is progressing, we are not sure where is this eLearning platforms are heading to. But investors are sure, this is going to be the future of the education industry.
In conclusion, there are a lot of vital reasons behind all these investments from the world’s leading investment firms to eLearning startups. Investors see the full potential of these platforms and considering the profitable future, they are stepping back to invest in these EdTech platforms. The technological advancement, growing acceptance, and immense growth of learners are making investors invest billions of dollars in eLearning platforms.