Are ed-tech startups a bubble that’s ready to burst?

Ed-tech startups raised more than $500 million in funding in the first quarter of 2014 alone, but some investors are worried about a bubble

edtech-startups-bubbleWhen Matthew Pittinksy and the other founders of Blackboard attempted to find funding for the then-fledgling learning management system in the late 1990s, they were met with a wall of disinterest.

“‘We don’t invest in education,'” Pittinsky remembers investors saying. “‘We don’t do healthcare, and we don’t do education.'”

At the time, if a company wasn’t a large textbook company or a for-profit college, it was barely worth a glance to investors. Education was a large market, but one that was notoriously slow-moving and where the players were well-defined and largely resistant to sweeping technological changes.…Read More