Trends in Global EdTech 2013 (2)

Trends in Global Edtech, 2013

Quan Nguyen, Thao Vu

Trends in Global Edtech

Flipped Classroom MOOC Adaptive Learning Online Tutoring Edu Social Network Mobile, Tablets Gamification Evaluation

The Flipped Classroom (E-learning with degrees)

Apollo

Pho

enix

Stra

yer

Kapla

n Uni

vers

ity

Stra

igte

rline

0

100000

200000

300000

400000

500000 456000

46000 459794000

Total number of students, 2011-2012

Total number of students, 2011-2012

Players:

Customers:•College students•Professional adults, •Standardized tests takers.

The Flipped Classroom ((E-learning with degrees)

Academic PartnershipTotal Funding: N/AInvestors: Insight Ventures Partners

2UTotal Funding: $88.5M ( Highest funded education technology start-ups in the United States)Investors: Redpoint Ventures, Novak Biddle Venture Partners and City Light Capital, Highland Capital Partner, Bessemer Venture Partners, Tondern Capital

University of PhoenixTotal funding: N/A. Part of Apollo Group with a market capitalization of $5.36B

Kaplan UniversityPart of Kaplan Education Group

Strayer UniversityTotal funding: N/AInvestors: New Mountain Capital, Deutsche Bank Capital

StraigterlineTotal funding: $10MInvestors: FirstMark Capital

Associate with universities to offer degree programs

Offer associate degree programs, training courses

Business model:

The Flipped Classroom ((E-learning with degrees)

Asia

ChinaEdu is the largest online degree service provider in China in terms of both the number of institutions that they serve and the number of student enrollments

Business model:provide comprehensive services for the online degree programs of leading Chinese universities

Funding:Private transaction from Bessemer Ventures

Vietnam

TOPICA is established in 2007 with the mission of providing online Bachelor’s degree programs in ELearning method

Business model:Signed contracts and operates their e-learning method to 6 universities in Vietnam, and potentially reaching as many as possible opportunities with all public and private universities and colleges in Vietnam



MOOC (Massive open online course)

Customers: Professional adults in the industry that the course topic pertains to Those who have already completed traditional postsecondary education International students

Main Players:

Source: Smarthighered.com

MOOC (Massive open online course)

Name Total funding

Fundraised

Stage Investors

Coursera $65M $16M Venture Round

Kleiner Perkins Caufield & Byers (KPCB) and New Enterprise Associates (NEA)

$6M Series A California Institute of Technology, the University of Pennsylvania, Kleiner Perkins Caufield & Byers and New Enterprise Associates

$43M Series B GSV Capital, the International Finance Corporation (IFC), the investment arm of the World Bank, Laureate Education, Learn Capital and investor, Yuri Milner

EdX $61M $60M Seed MIT and Harvard

1$M Grant Bill & Melinda Gates Foundation

Udacity $20M $5M Series A Charles River Ventures

$15M Series B VC firm Andreessen Horowitz, Charles River Ventures and Steve Bank

Udemy $16M $1M Seed Keith Rabois, Rick Thompson, Russ Fradin, Benjamin Ling, Larry Braitman, Jeremy Stoppelman,Naval Ravikant, Paul Martino, Josh Stylman, Mark Sugarman‘s MHS Capital and Dave McClure‘s 500 Startups fund.

$3M Series A Eric Lefkofsky, Brad Keywell , 500 Startups and MHS Capital

$12M Series B Insight Venture Partners, Lightbank, MHS Capital and Learn Capital

Business model:•Licensing•Course development•Examination fees•Certification fees•Course fees•e-Portfolios•Matching students and employers•Developing sponsored courses

Cours

era

Udacity

Udem

yEd

x0

200000

400000

600000

800000

1000000

1200000

1,000,000

739,000

500,000

370,000

Number of students, 2012

Students

Source: Chronicle, Edudemic, Bostonmagazine, Crunchbase

MOOC (Massive open online course) Vietnam

Suggestion: COOC model (Connective open online course)Learning model:•Mass learning style, for a large number of students from different universities, studying general courses•Learning the ordinary courses of universities, conduct by faculty groups•Informal learning for specialized courses, learning topics not included in the official programBusiness model:•COOC providers can associate with universities to link their courses together, so those who are in the system can learn these courses for free•Other people will have to pay to access these courses.•Specialized courses can be offered for free to attract users

Asia

Business model:•Offer services for paid and unpaid users•Livecast programming and interaction with users•E-commerce services Funding: July, 2013: $1.52M from Itochu Technology Ventures, Incubate Fund and Andri

MOOC is a mass education model -> difficult to apply for Vietnam, based on aspects of cost, infrastructure, management capabilities, as well as the availability of psychological habits for mass learning style

Schoo is a Tokyo-based MOOC startup providing livestreamed lectures on the internet. The company was founded in January 2012 and it currently has more than 40,000 registered users who enjoy access to over 130 different online courses.

Source: startup-dating, hoctapketnoi.net



Adaptive learning

Main players:

51%

28%

3%

2%

16%

Knewton.com web demographics

USA

India

Philippines

Canada

Other

Webempires.org, 2013

Customers:Knewton: K-12 students, English learning adults, test prep seekersGrockit: K-12, colleges, test prep seekersPrepme: Test prep seekersDreambox: Pre-K to Grade 5Carnegie learning: K-6 to K~12, college students

Source: Webempires, company website

Adaptive learning

Knewto

n

Dream

box

Carne

gie

Lear

ning

Grock

it

Prep

me

0

20

40

60

80

100

120

140

160 150

25~50

185~10 5~10

Adaptive learning main players' market revenue, 2013 (in mil-

lions $)

Name Total Funding

Fundraised

Stage Investors

Knewton $54M $2.5M Series A N/A

$6M Series B Bessemer Venture Partners Accel Partners and First Round Capital, Linkedin CEO Reid Hoffman and Zenbe co-founder Peter Stern

$12.5M Series C FirstMark Capital, Accel Partners, Bessemer Venture Partners, First Round Capital andReid Hoffman

$33M Series D Founders Fund, Pearson, Accel Partners, Bessemer Venture Partners and FirstMark Capital

Dreambox

$18.1M $7.1M Angel N/A

$11M Series A Netflix CEO Reed Hastings, Kleiner Perkins partner John Doerr GSV Capital Corp and Deborah Quazzo

$6M Debt N/A

Carnegie Learning

$20M $6M Series A Learning Group, Draper Triangle Venture Fund LP and New Schools Venture Fund

$14M Series B Carnegie Mellon University, Collier Investments, Ltd. and Draper Triangle Ventures

Grockit $44.7M $2.3M Series A Angel investors Mark Pincus, Rob Lord, Reid Hoffman Thomas Ryan and others

$8M Series B Integral Capital Partners and Benchmark Capital

$7M Series C Atlas Ventures, Integral Capital Partners and Benchmark Capital

$7M Series D Atlas Ventures, Integral Capital Partners, Benchmark Capital, NewSchools Venture Fund and GSV Capital CEO Michael Moe

Prepme N/A N/A Acquired

Ascend Learning

Business model:•Profits mostly come from standardized test preparations•Partnering with learning companies, publishers, schools, and others to help them deliver personalized instruction on a large scale

Adaptive learning

The program was designed by English language specialists from England (Sue Sprengeler , Jodie Waldesbuhl of Oxford and Cambridge University) and Vietnam (Vietnam National University)

After finishing each stage, children can be able to take Cambridge YLE, CEFR tests.

Adaptive learning method is integrated into program system:• Children learn lessons through a selected

model (The model which tracks and learns about the children)

• Tests are conducted as an evaluation of children’s current competency.

• Appropriate studying methods and corresponding courses are brought forward to meet the former requirement. (Ex: playing games, online class, networking community,…)

Primary applied in education



Online Tutoring

Main players:

52%

28%

20%Grades 1-8

Grades 9-12

College

Customers group(TutorVista, 2012)

44%

33%

6%4%

3%

3%2%2%2%1%

TutorVista Access Users Broken Down By Country, 2012

India

United States

Philppines

Pakistan

United Kingdom

Malaysia

Canada

Bangladesh

Nigeria

Australia

TutorVista

Tutor.com

Smarthinking

6,615,000

7,500,000

2,000,000

Number of online tutoring lessons de-livered

Number of online tutoring lessons delivered

In US, it accounts for about 6% of the US$2.2 billion private tutoring market. The U.S. online tutoring market, is estimated at $300 million , represents over 50% of the global market

Online Tutoring

Name Total Fundraised

Stage Investors

TutorVista $80.8 M

$2M Series A Sequoia Capital India

$10.7M Series B Lightspeed Venture Partners, Sequoia Capital India, Silicon Valley Bank

$18M Series C Lightspeed Venture Partners, Sequoia Capital India

$19M Series D LightSpeed, Manipal

Tutor.com $9.5M $13.5M Venture Round + Debt Financing

Intel Capital, Ascend Venture Group, Kidron Opportunity Fund, Dawntreader Ventures and debt funding from MMV Financial

Acquired IAC

Smarthinking $5M $5M Series A Collier Investments, Steve Walker Associates, Calvert Ventures

Tuto

rVist

a

Growin

gsta

rs

Smar

thin

king

0

5

10

15

20

25

30

35

4025~50

35

8

Total Revenue, 2012

US m

illion d

ollars

Business models:•An hour of online tutoring in the US can cost anywhere between $40 and $60. •Companies like TutorVista have Indian teachers providing service at a fraction of the amount charged by their counterparts in the US or Europe.•Oursourcing the service has brought down the cost of an hour of online tutoring to as little as $20 (TutorVista: $10 to $25/h, Tutor.com 30$/h, Smarthinking $35/h, Growingstars: $15 to $20/h)

Online TutoringStudent answer service via phones

Players:

Name An Hưng online tutoring company

Hocmai.vn online tutoring service

Service Support K-12 students doing their homework, answering questions regarding their educationWebsite: giasutructuyen.vn

Support middle school and high school students answering questions regarding Math, Physics, Chemistry, History, Biology Website: hocmai.vn

Price 1500 VND/m for table telephones 3000 VND/m for cell phones

1.500 VND/m for table telephones1.850 VND/m for cell phones

One on one online tutoring Players:

Trung Tâm gia sư Hà Nội

Service:•One on one online tutoring via messenger programs.•Students call the company to get arranged with a suitable tutor•Website: www.trungtamgiasuhanoi.edu.vn

Online tutoring networkPlayers:

Service:•Tutors create classes on the website•Students choose the suitable tutors and classes•One on one online tutoring via Skype•Math, Physics, Chemistry, English for grade 6-12 •Website: giasuonline.edu.vn

Payment:•ATM cards•Phone cards

Price:

Number of lessons/ Type of tutors

4 lessons/ month

8 lessons/ month

Student tutor

190.000 VND

360.000 VND

Teacher tutor

280.000 VND

560.000 VND

http://www.trungtamgiasuhanoi.edu.vn/



Educational social network

Main players:

Edmodo

Educlipper

Sophia

0 5000000 10000000

10000000

25000

50000

Number of users, 2012

Edmodo users broken down by continents, 2011

Educational social networkName Total

funding

Fundraised

Stage Investors

Edmodo $40M N/A Venture Union Squares Ventures

$15M Venture Greylock Partners, Benchmark Capital

$25M Series C New Enterprise Associates, Inc, Greylock Partners, Benchmark Capital, Union Square Ventures, and Learn Capital

Lore $6M $1M Seed Founder Collective, IA Ventures, Shasta Ventures and some angels

$5M Series A Social Capital Partnership, IA Ventures, Founder Collective and David Tisch

Educlipper

$600K $600K Seed Learn Capital and Western Technologies

Sophia Learning

N/a N/A Acquired Capella Education Company

Business model:

Edmodo is free, but the company is opening its API (application programming interface). Using its API, companies can now connect their own apps to Edmodo social network, meaning that they can tap into Edmodo badge functionality, feeds, assignments, grade book and so on.

So far Lore is free and carries no advertising, but it can eventually become the marketplace for everything from courses to textbooks.

Educlipper and Sophia Learning are free, and have not had any plans for future revenue models.

Educational social network

Social networks for education in Vietnam:

Platforms with simple tools and functionsIntended for specific targets

Course fees are chargedInfrequently updated databases and web

designs

What do 80% of interviewees expect from a social network for education?

Well-developed and useful functionsTotally free services

Wide community of usersIntended for a broad range of target users

Violet.vn Chamhoc.vn

Vnedu.vnHocmai.vn



Mobile, Tablets

Name Total funding

Fundraised

Stage Investors

Classpad $15M $15M Venture

Growth Partners India(FGPI), FIL Capital Advisors (India)

Amplify $4.5M $4.5M Venture

Mark Burnett (Apprentice, Survivor), Brian Grazer, Jarl Mohn, Accel Partners, BV Capital, Greycroft Partners, Rustic Canyon, Tomorrow Ventures (Eric Schmidt), Tim Draper, Gordon Crawford, Vivi Nevo, Paige Craig, Diego Berdakin and Tom McInerney.

Nearpod $1.5M $500K Seed by NewSchools Venture Fund, with angels Clarence So (Salesforce) and Sina Shekou (Real Page)

$1M n/a n/a

Socrative $720k $720k Venture

6 unknown investors

Educational app platform

Educational tablets:

•Classpad•Aakash•Learnpad•Amplify

Players Business models:Educational tablet manufacturers: Often associate with governments, universities and schools to distribute tablets to studentsNearpod: FREE for Silver Edition. They also offer Gold and School Editions with more features, which are not freeSocrative: license its cross platform mobile solution to school and districts, provide it to tablet manufacturers through partnerships with device manufacturers, publishers and smart-board providers.

The worldwide market for Mobile Learning products and services reached $3.2 Billion in 2010. The five-year annual growth rate is 22.7% and revenues will reach $9.1 billion by 2015.

Mobile, Tablets

37

86654

33

Number of Mobile Learning VAS products in Asia

IndiaChinaSouth KoreaPhilippinesBangladeshJapanOthers

0%

20%

40%

60%

80%

100%

120%

140%

160%155% 152%

100% 100% 100%

Mobile penetration rates in some countries in Asia, 2013

Mobile penetra-tion rates in some countries in Asia, 2012

Who are the buyers?

Consumers and academic

institutions

Foreign entities operating in these

supply chains

Government agencies which

run the centralized educational

systems

Asia had 99 Mobile Learning VAS products, more than any other region and 45% of all Mobile Learning VAS products on the global market. Africa and Latin America have the next highest concentrations

Highest revenues for Mobile Learning on the planet throughout the forecast period.

Third-highest growth rate at 21.2% (after Africa and Latin America.)

Mobile Learning revenues in Asia reached $2.6 billion in 2012 and will reach $6.8 billion by 2017.

Mobile, Tablets

One Tablet Per Child in Thailand:•World’s largest education tablet distribution deal to date. ($32.8 million). Each tablet costs $81• It became official after members of the Pheu Thai party partnership with the Chinese firm, Shenzhen Scope. •Until August 2012, the Ministry of Education has distributed tablet PCs to 129,632 children, numbering 800,000 grade-one students nationwide.

Korea to use ebooks by 2015:•Korea announced that it will replace paper textbooks with electronic tablets in all state-run (public) schools by 2015.•South Korea has revealed the cost of buying tablets and digitizing material for all of the students in its state-run schools: $2.4 billion.

Asia Vietnam

Classbook8-inch educational tablet, manufactured by Corporation Education Ebook EDCClassbook works directly with publishers to get textbooks, safely preserving their copyrights, onto digital and interactive versionsPrice: VND 4.8 million ($230), but they also built a customized Android ROM.Features: Textbooks for grade 1 to 12, educational apps Classbook Store: Library for books from Vietnam Education Publishing House, educational apps and sample tests Classbook Manager: Syncing books and apps between Classbook and Classbook Store



Gamification

Gamification Market is Estimated to Grow from $ 421.3 Million in 2013 to $5.502 Billion in 2018

• Estimate: Gamified Education sector is accounted for $16.9 Million in 2013

• The education, healthcare and financial sector will increase dramatically but will not overtake entertainment by 2017

ga-mi-fi-ca-tion

• the application of game mechanics and dynamics to non-game environments in order to increase participation and engagement

Source: MarketsandMarkets, PwC, M2 Research, Egogics

Gamification

Main Players

Multi-verticals (Consumer, Education, Enterprise, Government, Health, Social Good)

Education only

US MARKET

Source: Company website, AngelList, Forbes

Players Investors Funding

Class Dojo Y-Combinator co-founder Paul Graham (who invested personally, not through YC), Ron Conway, J eff Clavier, Kapor Capital, Start Fund, General Catalyst, Morado Ventures, Lerer Ventures, NewSchools Ventures, Learn Capital, along quite a few angel investors (including Flixter CEO J oe Greenstein and OpenFeint Founder J ason Citron).

$1.6M in Seed funding. (8/ 15/ 12)

OpenStudy Government Grant $500 k (4/ 2009)$250 k (4/ 2010)$250 k (4/ 2011)

Bunchball

BadgeVille InterWest PartnersNorwest Venture PartnersTrinity VenturesEl Dorado Ventures Webb Investment Network.

$250k in Seed funding. (1/ 1/ 10)$2.5M in Series A, led by El Dorado Ventures and Trinity Ventures (11/ 1/ 10)$2.5M in Series A funding (11/ 23/ 10)

Granite VenturesTriangle Peak PartnersNorthport Investments Correlation

$2M in Series A funding. (10/ 1/ 06)$4M in Series B funding. (4/ 13/ 08)$6.5M in Venture Round funding.

Gamification

Market OverviewVery few games are offered and not having much influence:

• Vương Quôc Chuột Chui – VNG• Chinh Phuc Vu Môn – eGame • Đâu Tri Lơp Năm – Exe Studio• Topica Amazing English – Topica• Mang Chăm Hoc (chamhoc.vn) –

FGame

Main Players

SEA MARKET

VIETNAM MARKET

Outstanding Player: Playbasis Thai-based startup providing gamification platform for multiple verticals Funding: $50,000 seed funding from Adrian Vanzyl & Paul Srivorakul (Aug 2012) & $150,000 seed funding from Ardent Capital (Mar 2013) Plan to expand over Southeast Asia: first Singapore, then Malaysia; raise next round of funding soon

Indication Still remain in the form of educational games rather than gamification of education (platforms that include game mechanics) There are still doubts about the effectiveness of learning while playing games

HOWEVER Gamification of education is a potential market due to the Vietnamese young demographics and good amount of Internet subscriptions, especially to social network and games Gamification and social network often go hand in hand

Source: Company website, Techinasia, AngelList



Evaluation

Online learning with degrees (flip the classroom)

MOOC

Adaptive learning

Educational Social Network

Online tutoring

Mobile, Tablets

Gamification

0 10 20 30 40 50 60

55

33

8

36

27

19

21

Which e-learning trends have you heard of?

MOOC and Adaptive Learning are not applicable

for Vietnamese market at the moment

Online learning with degrees (flip the

classroom) is the most popular trend according to

the survey -> Potential market for TOPICA to

expand its connection and for new players to jump in

Educational Social Network is popular, but the existed players in Vietnam needs to upgrade its model

to truly become a social network for education like

Edmodo.

Online Tutoring is not very well known, even though there are a lot of existed

players. Seem like private tutoring is still the better choice for many parents

Gamification of education is a very potential market,

due to the Vietnamese young demographics and high number of Internet

subcriptions.

1 2 3 4 50

10

20

30

0

8

2428

4

Evaluate the potential of e-learning in Vietnam in 5 years

Source: Own survey in August, 2013

Documents

Trends in Global EdTech 2013 (2)