Quorom Kurshan presentation v2 - files.meetup.comfiles.meetup.com/14050032/Quorom Kurshan...
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Transcript of Quorom Kurshan presentation v2 - files.meetup.comfiles.meetup.com/14050032/Quorom Kurshan...
Educa&on is at a Crossroads
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Cost Pressure
Personalized
Learning
Globalization
Accountability
Physical to Digital
Linear Knowledge Space
Random Knowledge Space
It is hard to innovate in the old knowledge space,
But learners today are in a new knowledge space.
EDUCATORS STILL PERSIST WITH THIS MYTH
Edtech Market Growing Fast
• 2012 U.S. eLearning: $32.5 billion • 2017 U.S. eLearning: $65.6 billion
15% annual growth expected in next 4 years
• 2012 Global eLearning: $90.9 billion • 2017 Global eLearning: $166.5 billion
23% annual growth expected in next 4 years
• K-12: $687.6 billion • Higher ed: $535.2 billion • Corporate/Government: $133.3 billion
Edtech now less than 5% of U.S. $1.3T education market
5 Source: GSV Advisors, Educa&on Sector Factbook 2012
Edtech Market Growing Fast -‐ US
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Edtech now less than 5% of U.S. education market
U.S. Education Spending U.S. eLearning Spending
2012-‐2017 CAGR
Education eLearning
Other 6% —
Corporate / Government 4% 5%
Higher Ed 5% 18%
K-‐12 4% 20%
Total 5% 15%
U.S. $ Billion
U.S. $ Billion
$16.6 $39.0
$69.0 $48.8
$95.4
$149.0
$25.5
$32.1
$37.5
$0
$50
$100
$150
$200
$250
2012 2015 2017
$2,227 $2,626 $2,930
$1,495
$1,884
$2,197 $356.6
$449.3
$524.0
$172.0
$284.2
$399.2
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2012 2015 2017
Edtech Market Growing Fast -‐ Global
7 Source: GSV Advisors, Educa&on Sector Factbook 2012
Globally, edtech is growing at an even faster rate
Global Education Spending Global eLearning Spending
2012-‐2017 CAGR
Education eLearning
Other 18% —
Corporate / Government 8% 8%
Higher Ed 8% 25%
K-‐12 6% 33%
Total 7% 23%
U.S. $ Billion
U.S. $ Billion
VCs and Angels Ramping Up Edtech Investment
8 Source: TechCrunch, based on CrunchBase data
Edtech VCs & Angels topped $500 million in Q1 2014
0
20
40
60
80
100
120
140
$0
$100
$200
$300
$400
$500
$600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Num
ber of Investment Rounds
VC investment Raised, U.S. $ m
Later-‐stage VC Early-‐stage VC
Number of investment rounds, right axis
2009 2010 2011 2012 2013 2014
Many Recent Edtech Exits
9 Source: Capstone Partners
Leading Acquirers � Pearson Educa3on
� 2013: Learning Cataly&cs; ExamDesign � 2012: Global English ($90 million), Embanet Compass ($650 million) � 2011: Connec&ons Educa&on ($400 million)
� Houghton Mifflin Harcourt � 2013: School Chapters; Tribal Nova; Choice Solu&ons
� Rose<a Stone � 2013: Lexia Learning; Livemocha
� McGraw Hill Educa3on � 2014: Engrade � 2013: ALEKS � 2012: Key Curriculum
� MacMillan New Ventures � 2013: Late Nite Labs
� Desire2Learn � 2013: Knowillage; Wiggio, Degree Compass
� Hobson’s � 2013: Na&onal Transcript � 2012: Beat the GMAT
� Plato Learning � 2012: Archipelago Learning ($300 million)
� Blackboard � 2012: Moodlerooms, Netspot
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Innovation Capital Available to Scale
Venture Capital (# of edtech companies in portfolio) – Atlas (4), Bessemer (3), New Atlantic (3), Flybridge (1),
Spark (1), Catamount (1), NextView (1)
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…200 US private equity firms have made significant investments in education companies
Reference: Following the Money in Education: Private Equity and the New Education Economy Posted EquityForEducation, by Mitch Leventhal and Ina Tang
Boston
Accelerators: Key Role at the Seed Stage
Silicon Valley
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Philadelphia Midwest
New York City Boston
Washington, D.C.
Characteris&cs of an Acquisi&ve Industry
End user market wants changes
End users can implement new products
Solution architecture is understood
Product review machinery exists
Market size is large
Established players have substantial turf to protect
There are growing players who also can acquire
There are aggressive attackers
Innovation opportunities both incremental & disruptive
Acquisition ecosystem (bankers etc. exist)
Early stage investors exist, follow-on capital identified
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• Visualization of Data and Big Data • OER Models for Sustainability • Aggregation of Content • Online Learning - MOOCs (here today gone tomorrow)?
Outlook for 2015
Innovation @ Penn GSE Bridging the Gap Between Theory and Practice
& Building an Education Innovation Ecosystem
Milken-Penn GSE
Education Business
Plan Competition
(EBPC)
Education Design
Studio, Inc. (EDSi)
Research: The Education Innovation Ecosystem
Athletes Career Change
Executive Program
Virtual Online
Teaching Program
M.S. Ed. for Education
Entrepreneurs
Case Study: The Education Design Studio at the Graduate School of Education, University of Pennsylvania
• Bring research to practice
• Accelerate innovations in global education
• Increase success rates for education-related start-up and early-stage ventures
Promoting Innovation in Education Enterprises
Academic Programs at GSE Masters in Education Entrepreneurship
� Degree: M.S. Ed. in Education Entrepreneurship � For: Recent graduates and working professionals with an
interest in fostering innovation in education, creating new schools or starting an education business
� Format: 15 month executive part- time program, on campus and online
� Coursework: 10 CU’s including a Capstone Project with practicum
� Learn: Foundations of Education, Business Essentials, Entrepreneurial Management of Knowledge
� Cohort #1: 21 students
Milken – Penn GSE Business Plan Competition
� Incentivizing entrepreneurs to enter the education space
� Idea generation, unbounded as well as problem specific
� Screening and vetting of early stage education ventures and ideas
� Access to funding for promising ventures
� Connecting entrepreneurs with investors, educators, researchers, and business leaders
� Organization of the market for education innovation
� Connecting education research to practice
� Providing a forum for conversation about the space
Dr. Barbara “Bobbi” Kurshan
Executive Director of Academic Innovation
& Senior Fellow in Education
Graduate School of Education
University of Pennsylvania
