News Roundup – 5/10

Our weekly roundup of education technology, workforce technology, and venture capital news.

Initiative launched to improve ed tech cybersecurity – The U.S. Department of Education and UC Berkeley’s Center for Long-Term Cybersecurity are launching the Partnership for Advancing Cybersecurity in Education (PACE) to enhance cybersecurity in educational technology. PACE aims to guide ed tech companies in securing school-based offerings and will host a summit in October to discuss cybersecurity in ed tech products. This initiative responds to a surge in ed tech use during the pandemic and aligns with the National Cybersecurity Plan‘s call for tech companies to strengthen cybersecurity. PACE reflects a broader trend of increasing support for districts in bolstering cybersecurity, including the creation of a federal council and a significant rise in state-level cybersecurity legislation.

Casino Capitalism in EdTech – The article discusses the concept of “casino capitalism” in the context of higher education technology (EdTech) ventures. With casino capitalism, institutions take high-risk, speculative actions, similar to gambling, in hopes of significant gains. Examples of this in action include universities acquiring for-profit online institutions and signing unfavorable contracts with Online Program Management (OPM) companies. These moves often lack due diligence, underestimate risks, and can lead to consequences like legal issues, reputational damage, and financial losses. The author highlights a trend of universities, driven by revenue concerns, fear of missing out (FOMO), and a disregard for expertise in online learning, rushing into partnerships and investments without a thorough assessment. There needs to be a more thoughtful, strategic approach in higher education decision-making to navigate challenges effectively and sustainably.

Ed tech venture funding hit lowest point in a decade in Q1 2024 – According to HolonIQ, global ed tech venture funding hit a low in Q1 2024, totaling $580 million, a stark contrast to the peak of $20.8 billion in 2021 during the pandemic. The sector received $80 billion in venture capital over the past decade but has faced challenges due to the AI hype cycle and the uncertainty surrounding long-term trends. Despite this, there are predictions of a potential resurgence in investment, especially in AI, with ed tech poised for a rebound after a decrease in funding to $2.97 billion in 2023. In the U.S., Q1 2024 ed tech venture funding stood at around $300 million, highlighting a significant gap from the 2021 peak of $8.3 billion.

Your Edtech Strategy Isn’t The Problem – There is currently a slowdown in growth within the education technology sector which raises questions about what is to blame. Is the slowdown due to product, market, or team-related factors? The author highlights the evolving landscape post-pandemic, where district needs have shifted from emergency responses to long-term solutions. Changes in demand for High-Quality Instructional Materials (HQIM) and curriculum and a broader redefinition of success after high school are noted. To thrive in the evolving educational technology industry the importance of cybersecurity, evidence-based practices, and talent in navigating this changing market is also emphasized, with a call for strategies focused on outcomes rather than short-term growth.

Community Colleges Are Rolling Out AI Programs—With a Boost from Big Tech – There has been an increasing demand for AI skills among job applicants. To the surprise of some, it seems the role of community colleges in training the workforce has also increased. Partnerships with tech companies, such as the AI Incubator Network, are aiding colleges in revamping programs and introducing new AI-focused courses. Historically, community colleges have lagged in offering AI-specific degrees, but there is a noticeable shift with institutions like Maricopa County Community College District and Miami Dade College leading the way. It’s important that the industry and policymakers recognize the value of community colleges in AI education and workforce development. These collaborations are crucial for providing hands-on training, employment opportunities, and shaping relevant curricula to meet the evolving demands of the job market.

Where kids have the most — and least — opportunity – The article focuses on the information from a report that highlights the significant disparities found in childhood opportunity both between and within different metro areas and emphasizes the profound impact childhood opportunity has on various aspects of life. Utilizing the Child Opportunity Index 3.0, the report assigns scores to census tracts based on factors like education, health, and socioeconomics, revealing stark contrasts in opportunity levels across cities. Cities like Bridgeport, San Jose, and Boston exhibit high opportunity scores, while places like McAllen, Brownsville, and Visalia rank lowest. The analysis underscores internal inequities within cities like Milwaukee, Cleveland, and Detroit, with racial disparities persisting nationwide. Recommendations from the researchers include addressing systemic inequities, reducing child poverty, revising zoning rules for equity, and enhancing access to quality education for all children.

Study: 40% of 2013 HS Grads Who Started on a Degree or Credential Didn’t Finish – According to information gleaned from a recent report from the National Center for Education Statistics, approximately 40% of high school graduates who enrolled in college or certification programs in 2013 did not obtain a degree or credential after eight years. The study tracked 23,000 students from their freshman year in 2009, and sheds a light on postsecondary outcomes, showcasing disparities in completion rates among different groups based on factors like gender, race, income, and the economic landscape. Various influences, including the 2008 Great Recession and educational policies like the No Child Left Behind Act, could have potentially impacted the educational trajectories of the 2013 cohort. Despite an emphasis on STEM fields in the early 2000s, the study found that most students pursued degrees in non-STEM areas, with disparities in completion rates observed across different demographics. Dig in to the article for more details.

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