the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University
Education
Planning
Mentors
Funding
Customers
Assistants
Clarity
Categories
Business
Sales & Marketing
Funding
Product & Design
Technology
Skills & Management
Industries
Other
Business
Career Advice
Branding
Financial Consulting
Customer Engagement
Strategy
Sectors
Getting Started
Human Resources
Business Development
Legal
Other
Sales & Marketing
Social Media Marketing
Search Engine Optimization
Public Relations
Branding
Publishing
Inbound Marketing
Email Marketing
Copywriting
Growth Strategy
Search Engine Marketing
Sales & Lead Generation
Advertising
Other
Funding
Crowdfunding
Kickstarter
Venture Capital
Finance
Bootstrapping
Nonprofit
Other
Product & Design
Identity
User Experience
Lean Startup
Product Management
Metrics & Analytics
Other
Technology
WordPress
Software Development
Mobile
Ruby
CRM
Innovation
Cloud
Other
Skills & Management
Productivity
Entrepreneurship
Public Speaking
Leadership
Coaching
Other
Industries
SaaS
E-commerce
Education
Real Estate
Restaurant & Retail
Marketplaces
Nonprofit
Other
Dashboard
Browse Search
Answers
Calls
Inbox
Sign Up Log In

Loading...

Share Answer

Menu
Educational Technology: What are factors one should look into for running an educational startup?
TW
TW
Tom Williams, Clarity's top expert on all things startup answered:

By way of background, I built the first website to be ever licensed by a ministry of education in *1996* and subsequently served as a VC associate for a five hundred million dollar fund focused almost exclusively on education investments.

Below, I've listed the most important factors in no particular order.

Money: Regardless of your product, you will need a team that investors are willing to bet big early money on. An ideal first raise is between two to four million dollars. You will need this because you need much longer runway and much more investment in sales efforts than almost any other type of web or mobile-based start-up before it's likely you will have meaningful revenue.

Distribution: How do you acquire new users? Do you require permission from an administrator to be deployed? A teacher? Both of these are challenging. If your product isn't relying heavily on students forcing adoption of the educators and/or administrators, your Company could die an early death, even with ample funding.

Team: Connected very much to the first two points, you must have a team capable of inspiring investor and educator confidence. It is easier to inspire investors than it is to educators. It takes a very special type of sales-person, one who is actually a great listener, shows genuine compassion for the customer, and ideally, has some credibility (if not personally, then behind them in the rest of the team) in the problem you're attempting to solve. Who is doing the selling matters most, and ultimately, if the CEO is ineffective at this role, they are likely not long for the CEO role during the startup phase at least.

Speed: Everything moves more slowly in this sector. It will take you at least twice as long as you reasonably forecast it will take to achieve your plan.

VC expectations: Read up about the "Series A" crunch taking it's toll on many teams and add extra crunch to education-related enterprises. The proof points are even higher and harder to hit in education, than they are in enterprise or consumer.

If you're not altogether discouraged and you think you have what it takes, or can assemble what it takes to win here, I'd be happy to do a call with you to discuss the particularities of your startup.

Best of luck!

Talk to Tom Upvote • Share
•••
Share Report

Answer URL

Share Question

  • Share on Twitter
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Share by email
About
  • How it Works
  • Success Stories
Experts
  • Become an Expert
  • Find an Expert
Answers
  • Ask a Question
  • Recent Answers
Support
  • Help
  • Terms of Service
Follow

the startups.com platform

Startups Education
Startup Planning
Access Mentors
Secure Funding
Reach Customers
Virtual Assistants

Copyright © 2025 Startups.com. All rights reserved.