Only 20 years ago, the names of the universities of Oxford, Harvard or Stanford sounded like the names of mythical animals living far beyond the ocean to the residents of the CIS countries. And only a very few could get into them.
Today, with the emergence of online education and a new trend called EdTech, all boundaries between universities and students have been erased. Today, thematic lectures and courses are available to everyone regardless of location.
Factors that affect the Rapid Growth of the Online Education Market
- Factor – Intensive digitalization (transition to digital technologies) of all the processes inside and outside the business.
Result – Quick change of occupations in demand. Yesterday, it was a graphic designer; today, it is a virtual reality developer.
- Factor – Good quality transformation of human consciousness in favour of LifeLong Learning concept.
Result – The desire of ordinary people to constantly upgrade their knowledge and skills regardless of location, status, and basic skills.
- Factor – The emergence of the young generation of digital native.
Result – The need for digital content for training.
- Factor – The transition to a new format of job interviews, when knowledge is valued much more to the employer than a diploma.
Result – The need to acquire good quality knowledge and skills.
- Factor – Poor level of teaching in countries with underdeveloped education system.
Result – The pursuit of self-education using high-quality primary sources.
Key Players in the Online Education Market
- Online platforms – Coursera, EduX, Udemy, SkillShare, WizIQ, Udacity, TechMeCash;
- Universities – Harvard University, Open University, Boston University, Tokyo University, Stanford University.
Who Buys Online Courses?
- Students who need more advanced knowledge in any discipline;
- Working professionals who need to upgrade their skills and knowledge;
- People who want to gain new knowledge and a new profession;
- Medium and large companies with the aim of conducting corporate training.
Investment in online education in 2018
The largest investors:
- Learn Capital – $683 000 000
- Rethink Education – $435 000 000
- University Ventures – $217 000 000
- New Schools – $112 000 000
Companies that got investment:
- Vipkid (China) – $500 000 000
- DreamBox Learning (USA) – $130 000 000
- Unacademy (India) – $21 000 000
- Import.io (UK) – $15 500 000
- Vedantu (India) – $16 000 000
Experts on the Investment Value of the Niche
Ryan Craig, the managing partner of University Ventures (one of the most active investment funds in the USA), spoke about his vision of the current situation in the online education market:
“As employers move from hiring based on having a diploma to hiring based on competency, many people will rightly decide that the acquired degrees are not a priority or even mandatory for certain positions. Over the next few years, diplomas are likely to disappear from job descriptions, and this will lead to an increasing number of students looking for postgraduate educational courses that are shorter, cheaper, and more related to a career or to an offer from an employer.”
And it’s hard to argue with him. Online education is rightfully considered one of the most attractive markets for investment in the world, after real estate and the Internet of Things. Those who will become part of this market now will receive excellent dividends in the coming years. Are you with us?