Earlier quoted context omitted.
> EdTech has the worst returns of any industry in venture capital. Why? I think this one is fairly simple. Half of consumer spending comes from the top 10% of earners, whose kids we can assume have generally pretty decent educations already. The people who need education help the most don’t have money to spend on it. The parents who do have money to spend want to invest in tailored education from a human teacher, not…
> So if you want to make money, you need to focus on things like enrichment and test/college prep for the top 10% But there's no potential market in the top 10%. I mean, these people just hire a good teacher and that's it. There's no room for improvement; there's nothing that can beat a good teacher. > Helping inner city kids who are 3 grades behind in reading doesn’t print money This is a political problem. Politica…
> Helping inner city kids who are 3 grades behind in reading doesn’t print money
100% and this is broadly why ed tech doesn’t move the needle.