More Related Content Similar to Reach Edtech Outlook 2017 (20) Reach Edtech Outlook 20172. Reach supports the most promising entrepreneurs developing
technology solutions to address challenges in early childhood,
K-12 and higher education.
We invest in early-stage companies that develop tools,
applications, content, and services to improve education
opportunities for all children.
2© 2017 Reach Capital. Confidential. All rights reserved.
About Reach Capital
3. 3
At Reach, we believe in...
Learning that...
Technology
that...
● Have a sense of purpose and actively pursue it
● Are empathetic, caring, and connected
● Work together to solve problems and improve the world
● Enables and respects a person’s agency and voice
● Exposes one to broad perspectives, places, and challenges
● Enables meaningful human interaction
● Minimizes boundaries and deepens connections between people
● Enhances and scales effective practices
● Increases access to quality education
Communities
where people...
© 2017 Reach Capital. Confidential. All rights reserved.
5. 5
Digital immigrants
learned to use
computers in the
workplace
Digital immigrants
learned to use
computers for school
Digital natives
grew up with computers,
video games, and social
media
Mobile natives
always connected;
integral part of life
BABY BOOMERS
1946 – 1964
MILLENNIALS
1981 – 2000
GEN X
1965 – 1980
GEN Z
2000+
© 2017 Reach Capital. Confidential. All rights reserved.
Today's students are mobile and always connected
Photo sources: Express Newspapers 2015, Mr. Martin's Web Site, MacStories 2017,
Independent Digital News & Media 2017
6. 6© 2017 Reach Capital. Confidential. All rights reserved.
Then Now
67%of millennials agree they can
find a YouTube video on
anything they want to learn
Learning is now bite-sized, on-demand, and
accessible anywhere
Think with Google
Photo sources: Amazon, Buzzfeed
8. 8© 2017 Reach Capital. Confidential. All rights reserved.
PC Revolution Begins:
first computers in school
1:5 Computer:Student 2:3 Computer/Tablet:Student
1977 2000 2016
NCES
Schools are moving rapidly to one device per child
Photo sources: Computer History Museum, Ben Schumin, Google
9. 9© 2017 Reach Capital. Confidential. All rights reserved.
of state-mandated tests in 2016
were available in a digital format
Then Now
85% EdTech Strategies
Online test policies drive schools' tech investment
Photo sources: Military OneSource, Education News
10. a
10
New Devices Shipped to Schools
Low-cost devices meet school demand
© 2017 Reach Capital. Confidential. All rights reserved.
• 20M Chromebooks are
used by students and
teachers weekly
• Microsoft offers suite of
low-cost devices
starting at $189
• Apple launches a $299
iPad for education
New York Times
12. Cost of K-12 Internet access has dropped significantly
12© 2017 Reach Capital. Confidential. All rights reserved.
EducationSuperHighway
13. © 2017 Reach Capital. Confidential. All rights reserved.
Virtually all U.S. classrooms are connected ...
13
EducationSuperHighway
14. 14© 2017 Reach Capital. Confidential. All rights reserved.
… but more bandwidth is needed
22%but
only
of districts have enough
bandwidth for 1:1 learning
94%of districts have enough
bandwidth for online testing
EducationSuperHighway
Photo sources: Education News, Edsurge
15. ADMIN SOFTWARE
- Internet access
expands
applications
- Focus on backend
systems and
compliance
HARDWARE
- Computer lab era
- 90% of edtech
spend is
hardware
- Apple dominates
in schools
CONNECTED
CLASSROOMS
- Proliferation of
low-cost devices
- Student apps take
off
15© 2017 Reach Capital. Confidential. All rights reserved.
With connected classrooms, edtech broadens focus
to instructional resources and content
1990s 2000s 2010s
17. 17© 2017 Reach Capital. Confidential. All rights reserved.
More than half of all states allow textbook funds to
be used for digital materials
DMAPS
18. BMO
Texas made a rapid shift to digital content
93%43% 20152014
Percent of new instructional materials that are digital
18
SETDA
© 2017 Reach Capital. Confidential. All rights reserved.
19. © 2017 Reach Capital. Confidential. All rights reserved. 19
Digital materials will soon overtake print in U.S.
89%
of school technology leaders expect
instructional materials to be at least
50% digital within three years
BMO
20. 20© 2017 Reach Capital. Confidential. All rights reserved.
Digital content frees us from static textbooks
thousands of sources4 major publishers
district-prescribed curriculum teacher-curated content
adapted in real-time7-year adoption cycles
Photo source: G.I. Jobs
21. • Lessons, assessments, and
activities are unbundled
• Anyone can publish
• Purchases made by
subscription or on-demand
Content marketplaces disrupt established
publisher model
21© 2017 Reach Capital. Confidential. All rights reserved.
22. 22
Teachers Pay Teachers marketplace upends
traditional publisher model
teachers in U.S.
downloaded at least one
resource from TPT
total earned by teacher
authors on TPT in 2016
$100M 14
teacher authors have
earned over $1M on TPT
2 3out of
Teachers Pay Teachers
© 2017 Reach Capital. Confidential. All rights reserved.
23. a
Over past 3 years
• S&P 500 up 24%
• Pearson down 58%
• Houghton Mifflin
down 32%
23
Publishers are on the decline
Jan
2015
Jul 2015 Jan
2016
Jan
2017
Jul 2016 Jul 2017
PercentChange
© 2017 Reach Capital. Confidential. All rights reserved.
25. 25© 2017 Reach Capital. Confidential. All rights reserved.
Teachers drive viral growth of ed tech products
40M
monthly active users
20M
users in 3 years
90%
of schools in 5 years
Edsurge, Edsurge, ClassDojo
26. 26© 2017 Reach Capital. Confidential. All rights reserved.
Teachers overwhelmingly find resources online
40.4%
Simba Information & MCH Survey, May 2016
27. 27© 2017 Reach Capital. Confidential. All rights reserved.
Decision-makers rely on teachers and increasingly
students for edtech recommendations
100%of superintendents
95%of principals
Improving Edtech Purchasing
Rely on end-user recommendations for
K12 edtech purchase decisions
28. 28
Teacher choice
Abundance of
digital resources
© 2017 Reach Capital. Confidential. All rights reserved.
Massive user
adoption
Upsell to
schools / districts
Upsell to
families
Premium featuresFree product
Freemium business models are behind the fastest
growing edtech products
29. ENTRY POINT
Sell to school- and
district-decision makers, who push
product down to classrooms
Product is free for teachers and students
who drive school- and district-level
purchases
CONTRACT SIZE $10K+ / district $1K - $5K / school
SALES CYCLE 6-9 mo < 3 mo
SALES REPS Field-sales ($$$) Inside-sales
GROWTH Driven by field-sales Driven by teachers
29© 2017 Reach Capital. Confidential. All rights reserved.
Freemium flips traditional top down sales model
TOP DOWN
Institutional sales
BOTTOMS UP
Freemium institutional
30. 30© 2017 Reach Capital. Confidential. All rights reserved.
Newsela ramped up to 78% of US English teachers in
less than 4 years
31. Teacher-love drives growth and school sales for
Newsela
31© 2017 Reach Capital. Confidential. All rights reserved.
Newsela
Teachers love product
and evangelize
High teacher
engagement enables
sale to schools
Viral growth driven by
social media
Teachers & students
access for free
High quality, leveled news articles
engage students
Schools pay for analytics and
other high-value features
32. Free access to over 25K high quality e-books
makes Epic an easy choice for teachers
32
87% of all K-8 schools
use Epic
© 2017 Reach Capital. Confidential. All rights reserved.
87%
33. 33© 2017 Reach Capital. Confidential. All rights reserved.
Parents and kids first learn about Epic in school and
bring it home to continue reading
Families learn about
Epic from teachers
Families purchase Epic
for home use
Teacher referral builds
parental trust in brand
Students use Epic at
school for free
Students access thousands of
books in digital classroom libraries
Parents support and reinforce
reading behaviors at home
34. a
How has this impacted learning?
We’re getting better and better at doing
what we’ve always done.
35. 35
Technology super-charges student writing
© 2017 Reach Capital. Confidential. All rights reserved.
Manual typewriters
Student writing looks
professional
Electric typewriters
Publishing is faster and
easier
Chromebooks,
Google Apps, AI
Writing is collaborative and
feedback rich
Desktops, MS Word
The writing process is
digital and iterative
BABY BOOMERS
1946 – 1964
MILLENNIALS
1981 – 2000
GEN X
1965 – 1980
GEN Z
2000+
36. 36
Tech-enabled instruction is multimedia, two-way,
and differentiated
© 2017 Reach Capital. Confidential. All rights reserved.
Chalkboards
Teachers supplement
lectures with visuals
Whiteboards
Students with allergies
spared from chalk dust
Sync’d student devices
Students receive
differentiated content and
can respond in real time
Interactive whiteboards
Teachers supplement
lectures with multimedia
BABY BOOMERS
1946 – 1964
MILLENNIALS
1981 – 2000
GEN X
1965 – 1980
GEN Z
2000+
Photo sources: Slate, NY Post, IntMath Valley View Elementary
37. 37© 2017 Reach Capital. Confidential. All rights reserved.
While tools have improved, today’s classroom
experience can still feel surprisingly old-school
BABY BOOMERS
1946 – 1964
Hairspray
set in 1962
GEN X
1965 – 1980
Fast Times at
Ridgemont High
1982
MILLENNIALS
1981 – 2000
High School
Musical
2006
GEN Z
2000+
Photo sources: Hairspray, New Line Cinema; Fast Times at Ridgemont High, Universal
Pictures; 10 Things I Hate About You, Buena Vista Pictures, WYPR
Sparrows Point
High School, MD
2017
TODAY’S CLASSROOMHOLLYWOOD IMITATES LIFE
39. 39
The nature of work changes as more and more
activities are automated
McKinsey
81%
Predictable physical
activities
69%
Processing data
64%
Collecting data
Work activities with the highest automation potential
© 2017 Reach Capital. Confidential. All rights reserved.
40. a
Workers will need to work more
closely with technology … and acquire
new skills that will be in demand in
the new automation age
McKinsey Global Institute
41. a
“Automation
could make us all
more human”
41
Automation creates opportunity for workers
to make use of innately human skills
Top skills needed in 2020
Developing others Problem solving
Emotional intelligence Creativity
McKinsey, World Economic Forum
Photo sources: BeanCap, LuxeBeat © 2017 Reach Capital. Confidential. All rights reserved.
43. a
Reach poses a challenge to the edtech ecosystem:
How might we…
… harness technology to change learning and help people
meet the next generation of opportunity?
44. 44© 2017 Reach Capital. Confidential. All rights reserved.
How might we...
Increase access to educational opportunity?
Streamlined school choice
and enrollment
Free digital library with over
25K+ titles for schools
Platform that enables
non-literacy specialists to
support struggling readers
45. 45
Presents sets of news articles
that examine personal identities
from diverse communities
Students around the world
collaborate on projects about
language, culture, & global
issues
© 2017 Reach Capital. Confidential. All rights reserved.
Animates and publishes stories
of students’ personal struggles
in their own words
How might we...
Expose students to new perspectives?
46. Connects students with industry
professionals
46
Connects students with peers
who have faced similar
challenges
Connects students with alumni
mentors
© 2017 Reach Capital. Confidential. All rights reserved.
How might we...
Make meaningful connections between people?
47. 47
Students produce videos
using Green Screen by Do Ink
© 2017 Reach Capital. Confidential. All rights reserved.
Students express
themselves and learn from
others on Flipgrid
Students write for a global
audience on Pobble
How might we...
Give students a voice and a real audience?
48. 48© 2017 Reach Capital. Confidential. All rights reserved.
problem
solving
learning how
to learn
critical
thinking
creativity
collaboration
How might we...
Teach skills essential for personal success and societal impact?
50. a
50
Chatbots scale student support
from enrollment to graduation
AdmitHub
AdmitHub offers 1:1 student support
at scale through AI-powered
mobile messaging
REAL-TIME, PERSONALIZED
SUPPORT
- Sends nudges
- Gathers important data
- Fields FAQs
AVAILABLE 24/7
- Meets students on mobile
- Answers questions instantly
CONNECT
- Students are connected
with empathetic college
counselors for more
meaningful conversations
90%Of students engaged with
the Chatbot in Georgia
State’s first year
Photo Source: AdmitHub © 2017 Reach Capital. Confidential. All rights reserved.
51. a
“I love Pounce, it’s
not pushy.”
“I like how
convenient it was.
I didn’t have to look
through my emails.
I just went to text.”
51
Students love AdmitHub, especially
those who are underrepresented
Summer Melt Case Study, AdmitHub
© 2017 Reach Capital. Confidential. All rights reserved.
32%
Greater engagement from
traditionally underserved
Pell Grant population
94%
Of students recommended
AdmitHub’s chatbot for
future students
52. 52
AdmitHub helps scale 1:1 support and frees
counselors to focus on critical conversations
AdmitHub
Of the 185,211 messages sent,
less than 1% needed university
staff intervention
“We would have had to hire
10 full-time staff members to do
the amount of messaging that
‘Pounce’ did.”
—Scott Burke, AVP for Undergraduate
Admissions at Georgia State University (GSU)
When’s the housing
deadline?
Which parent do
I use on FAFSA?
When will I know
if I got accepted? This is my dream
school, but I don’t
think I can afford it.
© 2017 Reach Capital. Confidential. All rights reserved.
53. 53
AdmitHub’s real-time, tailored support improved
enrollment outcomes at Georgia State University
How an Artificially Intelligent virtual assistant helps students navigate the road to college
+3.3
percentage points
21.4% Decrease in
Summer Melt
16.9% Increase in
flawless FAFSA
14.9% Increase in loan
counseling
© 2017 Reach Capital. Confidential. All rights reserved.
54. a
54
With AI-assisted grading, educators can give
constructive, timely feedback en masse
Gradescope streamlines the tedious
parts of grading so educators can
focus on what they do best: giving
great feedback
HOW IT WORKS
- Students submit work online,
or educators scan & upload
- Using AI, Gradescope
automatically groups similar
responses
- Educators provide granular,
constructive feedback for the
group of responses all at
once
Handwriting recognition and AI
automatically group similar responses
Constructive feedback
provided by educators at scale
© 2017 Reach Capital. Confidential. All rights reserved.
55. 55
AI-assisted grading transforms grading -- and learning!
“The course is much better off
because we are able to implement
this type of frequent assessment
and give students better feedback,
all within 24 hours.”
Chris Mayfield
James Madison University
"I feel like my life has changed.
Not only did [Gradescope] cut
down the time drastically, the
quality of the end result was
dramatically better … It resulted in
a grading criteria that was so
clear, structured and consistent
that the students also enjoyed it."
Samuel Dickerson
University of Pittsburgh
“Gradescope has revolutionized
how instructors grade homework
and exams. I don’t use that word
a lot, but once you’ve used this
tool, there’s no going back.”
Armando Fox, UC Berkeley
© 2017 Reach Capital. Confidential. All rights reserved.
56. a
TeachFX provides teachers analytics
and insights on classroom dialogue
HOW IT WORKS
- Teachers record their lesson
using a mobile app
- Voice analytics technology
distinguishes voices of
different speakers
- Teachers see a visualization
of speech patterns over the
course of a class
56
Voice analytics provide insights that can help
teachers facilitate more student dialogue
I decided to adjust my curriculum to
include more simulations and focused
discussions … The students were more
engaged than I had seen them all year.
Students were speaking over 80% of the
class!
Lucas Richardson
History teacher, Pembroke Hill, MO
I thought student talk was going to be a
lot more. Seeing the quantitative data was
shocking at first. I want to improve, to
raise my student talk percentage. So I'm
working toward that.
Matt Hicks
English teacher, Rockhurst High School
© 2017 Reach Capital. Confidential. All rights reserved.
57. 57
Together, we can create communities where people
- have a sense of purpose and actively pursue it
- are empathetic, caring, and connected
- work together to solve problems and improve the world
Photo sources: The Teaching Channel, Mystery Science, Tinkergarten, YouCubed