Today, the EdTech market is undergoing a revolution: technologies are evolving at an unparalleled speed while becoming more affordable. People worldwide are increasingly more aware of the opportunities that online and distance learning can give them even in the most remote regions. The growth of EdTech products has been explosive, skyrocketing from just $4 billion in 2018 and expected to reach $22.4 billion in 2025.
Now, technology is one of the rare bridges that connect knowledge with those willing to seek it. Virtual classrooms, personalized learning algorithms, and interactive tools are becoming the norm. Just to illustrate, EdTech solutions were a commonly accessed learning resource for K-12 students, with sites and resources taking up 15%, followed by supplemental platforms.
This demonstrates two facts: these solutions are on the rise, and EdTech business ideas have much room to grow. While a significant shift occurred during the COVID-19 pandemic, EdTech has been around for quite a while. However, the technological evolution of the recent decade has made this field much more attractive.
That’s why investing in education startups can provide potential business owners a chance to benefit from penetrating new niches while similarly revolutionizing the industry. It’s a lush field — you just have to find the right place for yourself in there.
Want to know how to start an EdTech startup? This article will introduce you to the EdTech industry ideas and show what matters for those interested in creating an educational product of the future. Here’s where the fun begins.
Reasons to invest in an EdTech startup
Despite global competitiveness in several branches of the EdTech industry, investing in it, nonetheless, holds immense value for all stakeholders, including investors. Why build an edtech startup? What’s in it for you?
High market demand
Education has grown more accessible, which, in turn, makes it more appealing to broader audiences. While traditional education responds to the evolving needs of the growing population, the general search for high-quality educational opportunities has been expanding further, leading to the emergence of many EdTech startups.
This tendency shifts from the popularity of learning in all age groups and demographics — some study for fun while others expand their professional expertise. In 2024, the revenue in education worldwide reached $7.65 billion. Aside from the financial growth, it also reveals the existing demand causing buyers to pay for better education.
Some of the most popular EdTech examples, such as InStride, Course Hero, and Examity, have captured a significant share of the industry by tapping into the uncovered needs of their customers.
Scalability and global reach
Unlike traditional education models, EdTech solutions can be easily scaled to reach audiences across borders. This is especially true because many people worldwide use English or other commonly used languages, which makes it easier to create an EdTech company accessible to more people.
Plus, the already existing experiences with digital education have demonstrated effective roadmaps for other companies to explore.
Diverse revenue opportunities
Education tech startups are not limited to one revenue stream. They can monetize in a variety of ways, including subscription models, licensing, freemium services, and pay-per-course fees. Because they rely on the Internet, any payment option existing today will work well.
That’s also aside from the obvious advantage of immensely diverse customer groups to target. For example, you can target people with special needs or K12 students studying from home.
Don’t forget about the aging population — many senior citizens are attractive clients due to their financial security and desire to learn something in their spare time.
Innovation-friendly environment
Next year, the EdTech landscape will look very different from what it does today. That’s what makes EdTech ideas for startups so valuable: they seize the momentum and explore novelties before their rivals do.
Such a constant evolution allows startups to experiment and try new tools and approaches, from AI to community learning opportunities. Even though it has a certain level of risk, it boosts research and competition.
Social impact
Education is the key driver of social progress, and various educational startup ideas rely on that. For many people, it is one of the few opportunities to gain better chances in life.
By the end of 2020, job gains for those with higher education reached around 15,000 thousand, while job losses for individuals with some college education or less were approximately 10,000 thousand — and that’s just in the U.S. alone.
That’s why EdTech startups can close the gap of educational inequalities by targeting an unsolved problem for the underserved market populations.
EdTech startup ideas
Let’s explore some of the potentially attractive EdTech ideas that you may want to invest in.
1. Collaborative learning platforms
Such platforms encourage peer-to-peer learning — typically, they invite users to interact and share knowledge. They combine peer feedback with deeper engagement and focus on communication. Such EdTech apps and platforms are oriented toward users who will remain active contributors and share their experiences with others.
Some of the features generally included in these platforms are video conferencing and digital whiteboards since they are necessary for collaborative learning. And what makes this field attractive? It’s universal nature: it works across all geographical areas and industries.
2. Professional training platforms for employees
The growing demands on the market and the need for constant employee improvement have led to the increasing need for professional training platforms. It’s also in the best interests of the companies to train their workforce, and a lot of them are willing to pay for better experiences suited to their business needs.
The value of these Edtech startup ideas is evident: in 2024, it was estimated that the U.S. training expenses reached $98 billion. The area of learning varies based on the priorities and industry. These platforms are promising because they address a dual pain point: companies need efficient, scalable training solutions, and employees want continuous development to advance their careers.
3. Language learning apps
If you think this market is too overcrowded enter, you may be pleased to learn that you’re wrong (if you have a unique Edtech startup idea to use, of course). By the end of the 2024 summer, the leading language learning apps recorded 26.5 million downloads.
Everyone wants to learn languages: some try to learn the most commonly used ones, such as English, Chinese, or Spanish while others prefer fictional or the ones going extinct. It’s a crucial skill that many are starting to recognize as an indispensable contributor to professional globalization.
Just as with collaborative training, this niche is promising due to its ability to diversify — you can strive for global reach or focus on a narrow group.
Read also: How to Build a Language Learning App: Essential Features and Best Practices
4. Gamification-based learning solutions
Gamified learning has become more popular worldwide as science starts to back it up more often. The best part? It’s not just for children — everyone likes a gamified Edtech app that teaches and entertains. From quizzes and leaderboards to badges and progress bars, these platforms create an addictive learning experience that motivates users to keep coming back.
Anything can be gamified, so entrepreneurs looking for an understudied field can definitely profit from tapping into less obvious learning perspectives. While gamifying learning for children is partially overused, companies can easily launch an Edtech company targeting senior adults, university students, or professionals in various industries.
Read also: Gamification in Educational Apps to Enhance Learning Experiences
5. Skill development microlearning platforms
Not everyone has time to spend on mastering new abilities — today’s world is busy enough. So when there’s an EdTech startup that offers people the opportunity to learn a little bit without pressure, they are eager to jump on board.
Many users have started to admire the opportunity of learning in the form of bite-sized lessons that take no more than five minutes per day. It’s easy, it’s fast, and it doesn’t require too much commitment. This model appeals to professionals who want to learn on the go and to organizations seeking flexible training solutions.
Because most such platforms have scalable lessons, it’s possible to expand the amount of learning material, which, in turn, will make it appealing to new customer groups.
6. Marketplaces for tutors
Tutors no longer have to advertise themselves on separate websites or offline — they have the advantage of platforms where their services can be on display. Typically, educators focus on a narrow range of subjects that the students can filter through. These platforms usually gain from subscriptions provided to tutors or students — or both.
Curious how to start an Edtech company that’s not easy to imitate? There’s untapped potential in niche tutoring markets, such as specific arts, sports, or other less commonly covered skills that can become a golden niche for sponsors.
7. AI-powered tutoring/learning platforms
Let’s face it: AI is everywhere. So when you’re looking through the newest ideas for your EdTech company, you should consider the role AI will have on your platform. That’s why utilizing it from the get-go can be an even smarter solution.
AI can help your platform make learning more personalized based on the information it analyzes. And because this technology is constantly evolving, many AI EdTech startups count on their endeavors progressing as well. But don’t forget about the competition and the need for constant growth — it will take additional expenditures, so make sure your business initiative can cover this burden.
8. AR/VR solutions for immersive learning experiences
No longer a thing used for shopping or gaming only, augmented and virtual reality (AR/VR) has entered the learning arena with new opportunities. Students can explore historical landmarks or even practice surgical techniques without leaving the classroom — all based on what group you as a business owner intend to target.
At the same time, those who create an EdTech startup with AR or VR should be mindful of the costs. Since their price is relatively high, they allow for creating premium products with high-paying customers.
Our expertise in EdTech development can help you design applications that inspire learning, foster collaboration, and simplify complex ideas. Looking to create an innovative EdTech solution?
9. Apps for people with learning disabilities
Unfortunately, people with learning disabilities often lack high-quality programs and platforms to study on. You can launch an EdTech startup to fill in this gap — it has both social and business appeal. For entrepreneurs, this niche offers a loyal customer base and opportunities to partner with diverse profit and non-profit organizations.
This will pair well with global public acceptance and greater investments in inclusive education. Those entrepreneurs looking for opportunities to have a socially responsible business should focus on catering to vulnerable populations.
10. Preschool apps
Many education business ideas allow companies to target parents as an attractive audience. These companies’ primary goal is to help them focus on their children’s education even before they go to school. Kids can develop basic literacy, numeracy, and social skills through engaging activities.
These apps understand how young children’s psychology works and how to make the learning process active and effective. Such a startup can collaborate with schools or kindergartens to ensure that what children learn aligns with the long-term goals.
Succeeding with your EdTech startup idea
Despite its appeal and numerous opportunities, it’s not enough to have an idea to make your EdTech startup thrive. You need strategy, long-term planning, and outstanding execution.
Understand your target audience
Your stakeholders aren’t a homogeneous group; every business focus and approach will have its own objectives. Consider all of your education based business ideas and think about the group you want to assist. If you target high-end customers, it will affect the nature of your app — for example, you won’t likely succeed by advertising to low-income families.
If you want to work with preschoolers, you have to consider what design they would find most enjoyable. Spend time defining exactly who you’re building for and understanding their pain points. Are you addressing high school students prepping for exams? Or professionals who want to expand their knowledge of programming or chemistry?
Most importantly, ask yourself what issue you want to solve for that group. If you just imitate the concepts that already exist, you will have to fight against much greater competition than if you find something yet unsolved.
Focus on user-centered design
How to build an EdTech company? You invest in design. Design defines everything in an application; it guides your users from the starting point to where you want them. The efficiency of UX and the appeal of every tiny element, from colors to the size of the buttons on the starting screen, will significantly impact your success.
Conduct user research and test prototypes — then, gather feedback. Still, even if you plan to focus on a particular group, always account for accessibility and simplicity in design.
Read also: Top 7 Education App Design Trends and Best Practices to Follow
Leverage the latest technologies
Your technologies are the face of your education startup. If you try to make them unique and irreplaceable, your rivals won’t have a chance to compete with you in the chosen niche. Integrating cutting-edge technologies like AI, AR, or VR we have mentioned above can give your product a competitive edge, but try not to overdo it.
Technology isn’t a universal solution; you have to make it work for your business and to make it relevant. So, you can use AI to personalize the learning journey and use AR to help students turn abstract concepts into hands-on experiences.
Read also: Augmented Reality in Education: How to Apply It to Your EdTech Business
Prioritize scalability and iteration
Your education tech startup will grow as your business idea finds more like-minded people. You will need it to grow and scale as your user base expands. It means that your platform will have to perform well even with the increasing traffic and expanded markets.
Collaborate with your team closely to make sure you won’t need to remake half of your app once you reach broader populations.
Market effectively in the EdTech space
Granted, there are plenty of niches for investors in the EdTech market to ensure they don’t feel too overcrowded in terms of competition, but there’s still plenty to do and consider. With the overwhelming buzz of websites and social media constantly advertising something new, it’s necessary to contribute to marketing.
Aside from building a strong online presence, you should also accumulate your portfolio of effective cases and leverage partnerships with organizations that are more likely to attract the clients you want. Highlight the unique value of your product and communicate it to your audience.
Wrap-up
EdTech app development is a rewarding experience — you get a chance to solve problems for a new group of people while settling yourself in a fascinating and innovation-driven niche.
How to get started?
The product discovery phase is the best first step you can take to lay a solid foundation for the development of your EdTech solution. It includes a functional specification, UX/UI design, and a visual prototype that will give you a clear vision of the end product. On average, this phase takes 4-6 weeks.
The product discovery phase can help you:
- define a full scope of work and develop a roadmap for the project
- set a realistic budget for your MVP and plan your resources
- test the waters with your audience using a visual prototype
- craft a convincing investment pitch
- get to know your team
Feel like you need some help building an EdTech company? Reach out to us, and we’ll help you find the exact EdTech solution for you.
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About the author:
Alexey Shalimov, CEO at Eastern Peak
As CEO at Eastern Peak, a professional software consulting and development company, Alexey ensures top quality and cost-effective services to clients from all over the world. Alexey is also a founder and technology evangelist at several technology companies. Previously, as a CEO of the Gett (GetTaxi) technology company, Alexey was in charge of developing the revolutionary Gett service from ground up and deploying the operation across the globe from New York to London and Tel Aviv.
