Download - Reach Edtech Outlook 2017
Reach supports the most promising entrepreneurs developing technology solutions to address challenges in early childhood, K-12 and higher education.
We invest in early-stage companies that develop tools, applications, content, and services to improve education opportunities for all children.
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About Reach Capital
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At Reach, we believe in...
Learning that...
Technology that...
● Have a sense of purpose and actively pursue it
● Are empathetic, caring, and connected
● Work together to solve problems and improve the world
● Enables and respects a person’s agency and voice
● Exposes one to broad perspectives, places, and challenges
● Enables meaningful human interaction
● Minimizes boundaries and deepens connections between people
● Enhances and scales effective practices
● Increases access to quality education
Communities where people...
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Digital immigrantslearned to use
computers in the workplace
Digital immigrantslearned to use
computers for school
Digital nativesgrew up with computers, video games, and social
media
Mobile nativesalways connected; integral part of life
BABY BOOMERS1946 – 1964
MILLENNIALS1981 – 2000
GEN X1965 – 1980
GEN Z2000+
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Today's students are mobile and always connected
Photo sources: Express Newspapers 2015, Mr. Martin's Web Site, MacStories 2017, Independent Digital News & Media 2017
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Then Now
67%of millennials agree they can find a YouTube video on anything they want to learn
Learning is now bite-sized, on-demand, and accessible anywhere
Think with Google
Photo sources: Amazon, Buzzfeed
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PC Revolution Begins:first computers in school
1:5 Computer:Student 2:3 Computer/Tablet:Student
1977 2000 2016
NCES
Schools are moving rapidly to one device per child
Photo sources: Computer History Museum, Ben Schumin, Google
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of state-mandated tests in 2016 were available in a digital format
Then Now
85%EdTech Strategies
Online test policies drive schools' tech investment
Photo sources: Military OneSource, Education News
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New Devices Shipped to Schools
Low-cost devices meet school demand
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• 20M Chromebooks are used by students and teachers weekly
• Microsoft offers suite of low-cost devices starting at $189
• Apple launches a $299 iPad for education
New York Times
Cost of K-12 Internet access has dropped significantly
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EducationSuperHighway
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Virtually all U.S. classrooms are connected ...
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EducationSuperHighway
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… but more bandwidth is needed
22%but only
of districts have enough bandwidth for 1:1 learning
94%of districts have enough
bandwidth for online testing
EducationSuperHighway
Photo sources: Education News, Edsurge
ADMIN SOFTWARE- Internet access
expands applications
- Focus on backend systems and compliance
HARDWARE- Computer lab era- 90% of edtech
spend is hardware
- Apple dominates in schools
CONNECTED CLASSROOMS- Proliferation of
low-cost devices- Student apps take
off
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With connected classrooms, edtech broadens focus to instructional resources and content
1990s 2000s 2010s
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More than half of all states allow textbook funds to be used for digital materials
DMAPS
BMO
Texas made a rapid shift to digital content
93%43%20152014
Percent of new instructional materials that are digital
18
SETDA
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Digital materials will soon overtake print in U.S.
89% of school technology leaders expect instructional materials to be at least 50% digital within three years
BMO
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Digital content frees us from static textbooks
thousands of sources4 major publishers
district-prescribed curriculum teacher-curated content
adapted in real-time7-year adoption cycles
Photo source: G.I. Jobs
• Lessons, assessments, and activities are unbundled
• Anyone can publish
• Purchases made by subscription or on-demand
Content marketplaces disrupt establishedpublisher model
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Teachers Pay Teachers marketplace upends traditional publisher model
teachers in U.S. downloaded at least one
resource from TPT
total earned by teacher authors on TPT in 2016
$100M 14teacher authors have
earned over $1M on TPT
2 3out of
Teachers Pay Teachers
© 2017 Reach Capital. Confidential. All rights reserved.
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Over past 3 years
• S&P 500 up 24%
• Pearson down 58%
• Houghton Mifflin down 32%
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Publishers are on the decline
Jan 2015
Jul 2015 Jan 2016
Jan 2017
Jul 2016 Jul 2017
Perc
ent C
hang
e
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Teachers drive viral growth of ed tech products
40M monthly active users
20M users in 3 years
90%
of schools in 5 years
Edsurge, Edsurge, ClassDojo
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Teachers overwhelmingly find resources online
40.4%
Simba Information & MCH Survey, May 2016
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Decision-makers rely on teachers and increasingly students for edtech recommendations
100%of superintendents
95%of principals
Improving Edtech Purchasing
Rely on end-user recommendations for K12 edtech purchase decisions
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Teacher choice
Abundance of digital resources
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Massive user adoption
Upsell to schools / districts
Upsell to families
Premium featuresFree product
Freemium business models are behind the fastest growing edtech products
ENTRY POINTSell to school- and
district-decision makers, who push product down to classrooms
Product is free for teachers and students who drive school- and district-level
purchases
CONTRACT SIZE $10K+ / district $1K - $5K / school
SALES CYCLE 6-9 mo < 3 mo
SALES REPS Field-sales ($$$) Inside-sales
GROWTH Driven by field-sales Driven by teachers
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Freemium flips traditional top down sales model
TOP DOWNInstitutional sales
BOTTOMS UPFreemium institutional
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Newsela ramped up to 78% of US English teachers in less than 4 years
Teacher-love drives growth and school sales for Newsela
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Newsela
Teachers love product and evangelize
High teacher engagement enables
sale to schools
Viral growth driven by social media
Teachers & students access for free
High quality, leveled news articles engage students
Schools pay for analytics and other high-value features
Free access to over 25K high quality e-books makes Epic an easy choice for teachers
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87%of all K-8 schools
use Epic
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87%
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Parents and kids first learn about Epic in school and bring it home to continue reading
Families learn about Epic from teachers
Families purchase Epic for home use
Teacher referral builds parental trust in brand
Students use Epic at school for free
Students access thousands of books in digital classroom libraries
Parents support and reinforce reading behaviors at home
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Technology super-charges student writing
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Manual typewritersStudent writing looks
professional
Electric typewritersPublishing is faster and
easier
Chromebooks, Google Apps, AI
Writing is collaborative and feedback rich
Desktops, MS WordThe writing process is
digital and iterative
BABY BOOMERS1946 – 1964
MILLENNIALS1981 – 2000
GEN X1965 – 1980
GEN Z2000+
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Tech-enabled instruction is multimedia, two-way, and differentiated
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ChalkboardsTeachers supplement lectures with visuals
WhiteboardsStudents with allergies spared from chalk dust
Sync’d student devicesStudents receive
differentiated content and can respond in real time
Interactive whiteboardsTeachers supplement
lectures with multimedia
BABY BOOMERS1946 – 1964
MILLENNIALS1981 – 2000
GEN X1965 – 1980
GEN Z2000+
Photo sources: Slate, NY Post, IntMath Valley View Elementary
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While tools have improved, today’s classroom experience can still feel surprisingly old-school
BABY BOOMERS1946 – 1964
Hairspray set in 1962
GEN X1965 – 1980
Fast Times at Ridgemont High
1982
MILLENNIALS1981 – 2000
High School Musical
2006
GEN Z2000+
Photo sources: Hairspray, New Line Cinema; Fast Times at Ridgemont High, Universal Pictures; 10 Things I Hate About You, Buena Vista Pictures, WYPR
Sparrows Point High School, MD
2017
TODAY’S CLASSROOMHOLLYWOOD IMITATES LIFE
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Now consider workplaces of the future ... automated by robotics, artificial intelligence
and machine learning ...
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The nature of work changes as more and more activities are automated
McKinsey
81%Predictable physical
activities
69%Processing data
64%Collecting data
Work activities with the highest automation potential
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‘‘‘‘
Workers will need to work more closely with technology … and acquire
new skills that will be in demand in the new automation age
McKinsey Global Institute
a“Automation
could make us all more human”
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Automation creates opportunity for workers to make use of innately human skills
Top skills needed in 2020
Developing others Problem solving
Emotional intelligence CreativityMcKinsey, World Economic Forum
Photo sources: BeanCap, LuxeBeat © 2017 Reach Capital. Confidential. All rights reserved.
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Reach poses a challenge to the edtech ecosystem:
How might we…
… harness technology to change learning and help people
meet the next generation of opportunity?
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How might we...
Increase access to educational opportunity?
Streamlined school choice and enrollment
Free digital library with over 25K+ titles for schools
Platform that enables non-literacy specialists to
support struggling readers
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Presents sets of news articles that examine personal identities
from diverse communities
Students around the world collaborate on projects about
language, culture, & global issues
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Animates and publishes stories of students’ personal struggles
in their own words
How might we...
Expose students to new perspectives?
Connects students with industry professionals
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Connects students with peers who have faced similar
challenges
Connects students with alumni mentors
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How might we...
Make meaningful connections between people?
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Students produce videos using Green Screen by Do Ink
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Students express themselves and learn from
others on Flipgrid
Students write for a global audience on Pobble
How might we...
Give students a voice and a real audience?
48© 2017 Reach Capital. Confidential. All rights reserved.
problem solving
learning how to learn
critical thinking creativity
collaboration
How might we...Teach skills essential for personal success and societal impact?
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Chatbots scale student support from enrollment to graduation
AdmitHub
AdmitHub offers 1:1 student support at scale through AI-powered mobile messaging
REAL-TIME, PERSONALIZED SUPPORT
- Sends nudges- Gathers important data- Fields FAQs
AVAILABLE 24/7- Meets students on mobile- Answers questions instantly
CONNECT- Students are connected
with empathetic college counselors for more meaningful conversations
90%Of students engaged with
the Chatbot in Georgia State’s first year
Photo Source: AdmitHub © 2017 Reach Capital. Confidential. All rights reserved.
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“I love Pounce, it’s not pushy.”
“I like how convenient it was.
I didn’t have to look through my emails. I just went to text.”
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Students love AdmitHub, especially those who are underrepresented
Summer Melt Case Study, AdmitHub
© 2017 Reach Capital. Confidential. All rights reserved.
32% Greater engagement from traditionally underserved Pell Grant population
94% Of students recommended AdmitHub’s chatbot for future students
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AdmitHub helps scale 1:1 support and frees counselors to focus on critical conversations
AdmitHub
Of the 185,211 messages sent, less than 1% needed university
staff intervention
“We would have had to hire10 full-time staff members to do the amount of messaging that
‘Pounce’ did.”
—Scott Burke, AVP for Undergraduate Admissions at Georgia State University (GSU)
When’s the housing deadline?
Which parent do I use on FAFSA?
When will I know if I got accepted? This is my dream
school, but I don’t think I can afford it.
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AdmitHub’s real-time, tailored support improved enrollment outcomes at Georgia State University
How an Artificially Intelligent virtual assistant helps students navigate the road to college
+3.3percentage points
21.4% Decrease in Summer Melt
16.9% Increase in flawless FAFSA
14.9% Increase in loan counseling
© 2017 Reach Capital. Confidential. All rights reserved.
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With AI-assisted grading, educators can give constructive, timely feedback en masse
Gradescope streamlines the tedious parts of grading so educators can focus on what they do best: giving great feedback
HOW IT WORKS
- Students submit work online, or educators scan & upload
- Using AI, Gradescope automatically groups similar responses
- Educators provide granular, constructive feedback for the group of responses all at once
Handwriting recognition and AI automatically group similar responses
Constructive feedbackprovided by educators at scale
© 2017 Reach Capital. Confidential. All rights reserved.
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AI-assisted grading transforms grading -- and learning!
“The course is much better off because we are able to implement this type of frequent assessment and give students better feedback, all within 24 hours.”
Chris MayfieldJames Madison University
"I feel like my life has changed. Not only did [Gradescope] cut down the time drastically, the quality of the end result was dramatically better … It resulted in a grading criteria that was so clear, structured and consistent that the students also enjoyed it."
Samuel DickersonUniversity of Pittsburgh
“Gradescope has revolutionized how instructors grade homework and exams. I don’t use that word a lot, but once you’ve used this tool, there’s no going back.”
Armando Fox, UC Berkeley
© 2017 Reach Capital. Confidential. All rights reserved.
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TeachFX provides teachers analytics and insights on classroom dialogue
HOW IT WORKS
- Teachers record their lesson using a mobile app
- Voice analytics technology distinguishes voices of different speakers
- Teachers see a visualization of speech patterns over the course of a class
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Voice analytics provide insights that can help teachers facilitate more student dialogue
I decided to adjust my curriculum to include more simulations and focused discussions … The students were more engaged than I had seen them all year. Students were speaking over 80% of the class!
Lucas RichardsonHistory teacher, Pembroke Hill, MO
I thought student talk was going to be a lot more. Seeing the quantitative data was shocking at first. I want to improve, to raise my student talk percentage. So I'm working toward that.
Matt HicksEnglish teacher, Rockhurst High School
Our district is ecstatic about TeachFX. We have been striving to increase academic discussions in classrooms. Teacher talk and student talk is fundamental to reaching the expectations of our standards.
Daniela RoblesDirector of Teaching and LearningBalsz School District, Phoenix, AZ
© 2017 Reach Capital. Confidential. All rights reserved.
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Together, we can create communities where people
- have a sense of purpose and actively pursue it- are empathetic, caring, and connected- work together to solve problems and improve the world
Photo sources: The Teaching Channel, Mystery Science, Tinkergarten, YouCubed
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