Is education in for another 1980s-style round of educational software that goes nowhere? The author says, “This is a clear sign of a bubble in education technology.” What do you think? Ride the bubble, or burst it?
Nick DeSantis of the Chronicle of Higher Education writes about the incredible surge in investing in education technology start-ups. While people in the article claim ‘this time is different, I am not so sure. (I was at the University of Chicago when a bunch distinguished professors created UNext.com during the late 1990s — BIG BUST just like the startup I joined in 1999). From DeSantis:
Investments in education-technology companies nationwide tripled in the last decade, shooting up to $429-million in 2011 from $146-million in 2002, according to the National Venture Capital Association. The boom really took off in 2009, when venture capitalists pushed $150-million more into education-technology firms than they did in the previous year, even as the economy sank into recession.
“The investing community believes that the Internet is hitting education, that education is having its Internet moment,” said Jose Ferreira, founder of the interactive-learning company Knewton. Last…
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