News Roundup – 7/26

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

Why Are Ed-Tech Products Sitting Unused? It Starts With Failing To Research Teachers – In a discussion with Sarah Johnson, CEO of Teaching Lab, the article highlights the disconnect between ed-tech products and their actual usage in classrooms. Johnson emphasizes that many ed-tech companies prioritize getting their products in front of teachers rather than understanding why educators may resist using them. The key to success lies in asking the right questions and conducting research to identify educators’ needs and workflows. She suggests that companies should work closely with teachers to create solutions that genuinely address their challenges rather than relying on assumptions. With increasing budget constraints in school districts, ensuring impactful product usage is crucial for vendor retention. Johnson also advocates for innovations like outcomes-based contracting to improve accountability and suggests that educational companies focus on adapting their products to meet the specific contexts of different school systems.

Groups call for cutting chronic absenteeism by 50% over 5 years – A coalition of education nonprofit organizations, including the American Enterprise Institute, Education Trust, and Attendance Works, is urging states and school districts to implement policies aimed at reducing chronic absenteeism among students by 50% over the next five years. During a Washington, D.C. event, leaders highlighted the negative impacts of high absenteeism rates, which rose from 15% in 2018 to 28% in 2022, on student learning, teacher retention, and school culture. To address this issue, they emphasized the importance of best practices, such as enhancing home-school relationships and monitoring attendance data, especially as federal COVID-19 funds decline. The call for action stresses the need for targeted and creative resource allocation, acknowledging that effective solutions must be tailored to individual school needs.

Concentric Educational Solutions, our newest portfolio company employs several strategies mentioned in the article in their fight against chronic absenteeism. Learn more about the work they do.

Are Schools and Edtech Companies Ready for the Digital Accessibility Deadline? – The recent update to the Americans with Disabilities Act, emphasizing digital accessibility in education, presents a timely opportunity for ed tech investors. The U.S. Department of Justice outlined new compliance standards for schools, mandating that all digital content must be accessible by 2026-27, significantly shifting accountability from students to educational institutions and their vendors. This push for accessible educational materials means that ed tech companies that prioritize accessibility in their offerings can position themselves as essential partners for schools navigating compliance. Investors should note the increasing legal and operational pressures on educational institutions, which may drive demand for innovative products that simplify compliance and enhance learning experiences for students with disabilities. The requirement for accessible content and the potential legal ramifications for non-compliance could create significant market opportunities for companies that develop adaptive technologies and accessible learning tools.

Should teachers customize their lessons or just stick to the ‘script’? – Many teachers feel compelled to create their own curriculums due to the inadequacy of materials provided by school districts. Despite spending significant time and effort on lesson plans, many educators contend that pre-packaged curricula often lack cultural relevance, inclusivity, and alignment with student needs, prompting them to make adaptations. Experts stress that high-quality, standards-aligned curricula can aid educational equity, but resistance exists among teachers toward scripted materials that they believe do not consider students’ prior knowledge. Initiatives in various states aim to review and improve curricular quality, ensuring it meets diverse student needs, while teachers advocate for greater involvement in the development of these resources to better reflect their classrooms’ realities.

Our portfolio company, BetterLesson, is a content and lesson sharing community for educators that aims to capture and scale the successes of excellent K-12 teachers. Learn more about how BetterLesson supports every teacher, every day with the tools and resources they need to help all students succeed.

Higher Education’s Value Shift: Cengage Group’s 2024 Employability Report Reveals Growing Focus on Workplace Skills & GenAI’s Impact on Career Readiness – The 2024 Cengage Group Employability Report indicates a significant increase in graduates’ perception of their education’s value, with 73% believing it provides good return on investment, up from 52% in 2023. Despite this optimism, many graduates feel unprepared for the workplace, particularly regarding GenAI tools; 55% said their programs did not equip them for this technology, and 70% advocate for basic GenAI training in courses. The report also highlights that GenAI instills career uncertainty in over half of graduates, with 39% fearing job displacement. Employers increasingly expect candidates to have GenAI literacy, underscoring the need for educational institutions to adapt curricula to bridge the skills gap and enhance graduates’ adaptability in a technology-driven job market.

Designing a Successful Reskilling Program – Reskilling is rapidly becoming a mainstream necessity for organizations, with 56% of surveyed HR leaders actively implementing reskilling initiatives. For investors in workforce technology, this presents a compelling opportunity, as companies recognize reskilling as a strategic imperative to address skill shortages and enhance talent development. Despite the progress, firms face major challenges, from ensuring managerial engagement to measuring the effectiveness of reskilling efforts, underscoring a significant market demand for innovative solutions in reskilling technology and analytics. With the recognition that reskilling requires broad leadership involvement, a shift to continuous learning, and collaborative approaches—including partnerships with external experts—there is ample potential for tech-driven services that facilitate effective training and measurement of outcomes. Investors should note that organizations willing to prioritize reskilling are likely to gain a competitive edge in retaining and attracting top talent, making workforce tech solutions that enhance reskilling efforts an attractive investment opportunity.

Pathstream, our portfolio company, helps students from all backgrounds gain marketable skills through 5 credential programs for career advancement. Learn more about their programs.

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