Edtech is the unicorn Boat loads of cash to spend on the sector in 2020 after a capital boost. The idea of a well-capitalized startup to buy competitors to complement its core business is nothing new, but the exits in this area are notable because the money used to buy startups has epidemic effects on distance education Can be seen as
In the past week, the environment of consolidation has been making a clear statement.
Data agree. According to Crunchbase data, there were 45 Edtech exits in 2019 and 24 Edtech exits in 2021 so far. The same database shows just 35 exits for all of 2020. As we discussed about six months ago, the ability to buy (and have bought) changed.
Over the past week, the climate of consolidation has been making a clear statement: epidemic-proven startups are ridiculing talent – and speeding. Cahoot, which is set to list on the Oslo Stock Exchange within months, has bought three businesses within the last 12 months. Quizlet, which became a unicorn almost a year ago, made its first acquisition last week.
To understand more about this activity, I caught Matthew Glotzbach, CEO of Quizlet and Ilert Giertsen Hanoa, CEO of Kahoot. We talked about trends including lifelong learning in space, self-directed learning and more.
Q&A is a lucrative business
“To be a successful student in the last decade or two, it requires self-direction,” Glotzbach said in our chat just minutes. “Quizlet as a platform is helping empower that self-directed learner and giving them the tools they really need to succeed.”
To further this goal, Quizlet acquired the problem-solving tool Slader last week. Unfortunately, the price of the deal was not disclosed (but don’t worry, we’ll have the numbers in the next section). What we do know is that this is the startup’s latest move to focus its attention as a technology-driven tutoring tool rather than a simple flashcard app.
Currently, Quizlet uses its data around flashcard sets, queries, and trained natural language processing tools to understand how students can respond to certain signals. Artificial intelligence gives the company a little more flexibility that a student can answer the same question correctly.