News Roundup – 6/14

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

PROOF POINTS: We have tried paying teachers based on how much students learn. Now schools are expanding that idea to contractors and vendors – An analysis of the idea of outcomes-based contracting in education, where schools only pay vendors based on whether students use the services and see academic improvement which was originally prompted by the need to efficiently spend the $190 billion allocated by the federal government for reopening schools post-pandemic. The article highlights a pilot program involving online tutoring companies in several school districts, which faced challenges such as delays in contract negotiations and incomplete data on the efficacy of tutoring. But outcome-based contracts are evolving, with adjustments being made to contingency amounts and the involvement of teachers, parents, and students in the negotiation process. Interested schools should consider expanding outcomes-based contracts to education technology and software, and plan to incorporate curriculum and teacher training in the future.

Using ed tech in high-dosage tutoring could cut costs by a third – A working paper from the University of Chicago Education Lab found that substituting some high-dosage tutoring time with educational technology can reduce costs by one-third and the number of tutors needed by half without compromising the impact on student learning. Results from a randomized trial of over 4,000 students in Chicago and New York showed that alternating in-person tutoring with computer-assisted learning still provided equivalent math learning to traditional tutoring programs. This is promising as the approach may help address challenges in implementing high-dosage tutoring to address COVID-19 learning loss, which has been highlighted as a key strategy by the Biden administration. This good be a good option as federal funding ends and schools are looking for cost-effective ways to continue providing academic support to students at risk of falling behind.

Chronic absenteeism rates almost doubled during pandemic – A recent report from the Annie E. Casey Foundation shows that chronic absenteeism among students nearly doubled during the 2021-22 school year compared to pre-pandemic rates. The foundation identified adverse childhood experiences as a major factor contributing to absenteeism, along with challenges such as economic hardship and family issues. The foundation recommends increasing access to resources like school meals, tutoring, internet connection, and investing in community schools to address these issues. The report also highlights the impact of chronic absenteeism on reading proficiency and emphasizes the need for a community-based effort to combat this issue, with the Biden administration prioritizing strategies to address absenteeism at the federal, state, and local levels.

Our portfolio company, Concentric Educational Solutions, is committed to identifying issues contributing to chronic absenteeism and supporting students and families in their educational journey. Learn more about their mission and approach.

The Portion Of US VC Funding That Went To Female Founders Hit A New Peak In 2023, Thanks To Massive AI Deals – In 2023, a record proportion of U.S. venture funding, totaling $34.7 billion, was invested in startups with at least one female co-founder. This increase from previous years was largely driven by billion-dollar-plus rounds raised by AI companies with female co-founders. While funding to female-founded companies has been slowly increasing, there is still a long way to go to achieve parity. However, the progress seen in 2023, particularly in the AI sector, offers hope for continued gains for female startup founders in the future.

Some college, no degree update: an enormous swath of higher education – The National Student Clearinghouse Research Center recently released data on people with some college but no degree, which totals to nearly 42 million individuals in the U.S. These individuals are more likely to be older, male, and nonwhite, with for-profit and online institutions seeing the largest increases in this population. While some students do not pursue a degree for personal or external reasons, many leave due to structural issues within higher education institutions. There is a significant opportunity for institutions to re-engage with this population to increase attainment levels and drive social mobility for students of all backgrounds.

This week in 5 numbers: ‘Some college, no credential’ population grows – From Higher Ed Dive, a round-up of their recent top stories. Highlights from this edition include the number of working-age adults who reenrolled in college in the 2022-23 academic year after being away for at least three terms (943,000+) and the percentage of surveyed adults who think having a four-year degree is “not too or not at all” important to land a well-paying job (40%).

Kids Say They’re ‘Fine,’ But Parents Worry About Enough Mental Health Support – It should come as no surprise that a top priority for parents is for schools to provide a safe environment for their children’s mental health, with access to mental health services and a welcoming classroom environment. Parents also want training and tools to help them talk to their children about important issues, including but not limited to mental health. Many parents are also concerned about racism at school and want resources to address this issue at home and in the classroom. Additionally, parents may struggle with their children not acknowledging mental health issues, highlighting the need for education on typical behaviors for different age groups.

Mantra Health, one of our portfolio companies, understands the importance of acknowledging and taking care of one’s mental health. Learn more about the work they do.

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