Creator economy’s slow burn

Market Exits

The edtech sector is experiencing a significant surge in market exits, with 24 exits already in 2021 compared to 35 in all of 2020. Natasha Mascarenhas highlights that this trend is driven by the influx of capital into the sector, leading to increased acquisitions by companies like Kahoot, which has acquired three businesses in the past six months 1. Danny Crichton notes that this consolidation is not unique to edtech but is also seen in other sectors like SaaS, indicating a broader market trend 1.

There are now massive companies. There's real revenues here. Coursera has gone out for the markets now, 7.5 billion valuation. We're seeing masterclass at two and a half. There are real companies, and that means that there's a real market here.

--- Danny Crichton

Additionally, Reach Capital, an edtech-focused fund, has seen about $1 billion in exits in 2021, further emphasizing the sector's growth and potential for future investments 1.

   

Future Trends

The future of edtech is poised for innovation, with companies like Coursera and MasterClass leading the way. Danny Crichton explains that Coursera, valued at $7.2 billion, represents the traditional academic model of online education, while MasterClass offers a more entertainment-focused approach 2. Natasha Mascarenhas believes that MasterClass signals a shift towards more engaging and accessible forms of education, blending learning with entertainment 2.

The most exciting part about masterclass is what it signals about how education can look in the future. Like, I think courseras of the world used to have to look like this diploma esque product, something that was super legit and just made you feel like you were in class. But the masterclass of the world make you feel like you can watch Netflix and also pick up insights on the way.

--- Natasha Mascarenhas

This trend towards innovative educational models is expected to continue, offering diverse pathways for learners and reshaping the future of education 2.