News Roundup – 7/5

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

EdTech Index Announces Quality Indicators for New Tools – Seven education organizations ( 1EdTech, CAST, Consortium for School Networking (CoSN), Digital Promise, InnovativeEDU, International Society for Technology in Education (ISTE), and State Educational Technology Directors Association (SETDA)) have established five common quality indicators to evaluate ed-tech tools, including safety, evidence-based design, inclusivity, usability, and interoperability. These will help buyers make informed decisions about which tools to purchase, with certifications displayed on the ISTE EdTech Index. Digital Promise will assess tools for evidence-based and inclusivity standards, while developers can use the certifications as blueprints for creating future tools. The goal is to streamline the process of choosing ed-tech tools and fostering innovation in the market.

Ed tech use continues to climb ahead of ESSER fiscal cliff – During the 2023-24 school year, Instructure found that school districts increased their use of ed tech tools, with an average of 2,739 tools being utilized, up 8% from the previous year. Students accessed 45 different tools on average, while educators used 49 tools. The use of AI-related technology in ed tech tools is also on the rise, which has the potential to drive further investments in the sector. However, as schools increasingly rely on digital tools, they are more vulnerable to cyber threats, necessitating clear policies to ensure student data privacy is safeguarded. The findings from LearnPlatform’s ed tech report are based on data analysis across 436 school districts, indicating a significant reliance on ed tech in modern education.

PROOF POINTS: Some of the $190 billion in pandemic money for schools actually paid off – Despite reports of schools misusing federal pandemic recovery funds on non-academic expenses like building renovations and football fields, two independent academic analyses (1 and 2) found that some of the money did help students catch up academically. Low-income districts that received the most aid saw meaningful recovery, while wealthier districts are expected to almost fully recover on their own. Middle-income districts, however, are still struggling to catch up. Overall, schools need significantly more funding per student than what Congress appropriated for a full recovery in reading and math. Disparities in academic gains were also observed based on race, location, and school spending, with schools that spend less per pupil seeing more gains per dollar of aid. Unfortunately, researchers were unable to determine how schools used the aid to help students catch up, leaving room for improvement in future funding allocations.

Non-Traditional Education Helping to Fill Tech Talent Gap – Despite record-low unemployment rates, the tech industry is facing a talent shortage, with many tech leaders struggling to find skilled employees. Young Americans are not pursuing traditional education to fill this gap, prompting them to explore non-traditional means of acquiring tech qualifications. Online courses, professional programs, and apprenticeship opportunities are providing alternatives to traditional college degrees, offering practical skills and real-world experience to help bridge the talent gap in the tech industry. Platforms like Udemy and Coursera, as well as companies like Microsoft and Google, are offering affordable and accessible options to help young professionals gain the necessary skills for tech roles.

Our portfolio company, Pathstream, is another platform that provides digital skills credential programs for career advancement. Learn more about what they do.

Overcoming the ‘Entry Level’ Catch-22 in the Age of AI – Many job seekers today are facing a familiar yet frustrating Catch-22: They can’t get a job because they lack experience, and they don’t have experience because they can’t get a job. Factors contributing to this challenge include a competitive job market, a shift towards hiring experienced candidates, and the increasing role of AI in displacing entry-level positions. To navigate this landscape, job seekers are advised to develop AI skills, showcase their portfolio through projects and published works, and create their own experiences through platforms like Substack. As AI becomes a crucial skill for entry-level roles, job seekers who proactively build their AI literacy and expertise will have a competitive advantage in the job market.

Maryland Ed Boards Approve Goals: Test Scores, Absenteeism, Teacher Diversity – A topic of interest in our corner of the world. The Maryland State Board of Education and the Blueprint for Maryland’s Future Accountability and Implementation Board recently set aggressive new goals for student achievement, attracting diverse teachers, and reducing chronic absenteeism during a joint meeting. The goals include improving literacy and math proficiency levels, increasing teacher diversity and retention rates, and cutting chronic absenteeism in half by 2025-26. The state aims to rise in national education rankings and aligns priorities with workforce diversity, high-quality teaching, early childhood education, resource provision, college and career preparation, and governance and accountability. School districts have submitted implementation plans for Blueprint initiatives, with discussions ongoing to finalize and approve them.

Mark Grovic, Founder of New Markets Venture Partners Gives us a Status Update on Investing in Edtech – Our Co-Founder and General Partner sat down with Jack Hammer’s Debbie Goodman for an honest and optimistic discussion on the state of investing in Edtech, covering a range of topics related to private equity investment in the edtech and workforce sectors. The conversation highlights the importance of focusing on profitability and building strong, cashflow-positive businesses, but also delved into themes like skills-based hiring, the need for a shift towards work-based learning and apprenticeships, and the potential for industry-recognized credentials to play a role in evaluating skills. Grovic and Goodman recognized the slow adoption of these new approaches and the challenges in changing traditional hiring practices. They also explored opportunities in the market, such as increased access to technology and the focus on engaging and relevant curriculum for students. If you’re looking for a nuanced view of the challenges and opportunities in the current investment landscape in the edtech and workforce sectors, emphasizing the importance of innovation, adaptability, and a focus on creating meaningful impact in education and workforce development, listen now.

#NewsRoundup