Stephen Downes

Knowledge, Learning, Community

Michael Feldstein is worried that ed tech venture capital (VC) funding is slowing to a trickle, and "If I am right," he says, "this is bad news not only for investors and start-ups but for EdTech companies of all sizes and, ultimately, for their academic customers." Essentially, there's a downward push on the valuation of ed tech companies, which means raising capital becomes more expensive, which means they have to make more money to pay for capital instead of developing new features or services. "Big companies that customers depend on will be squeezed, spending less, and laying off employees." Small companies are less likely to emerge as challengers. Try as I might, though, I can't really imagine a world in which VCs are the saviours of our sectors, especially when their business model is one of extracting value for themselves out of other people's work.

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Stephen Downes Stephen Downes, Casselman, Canada
stephen@downes.ca

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Last Updated: Feb 21, 2024 12:57 a.m.

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