Investment in human capital
One of the foundations for any nation’s economic growth is an educated workforce.
A growing and increasingly urbanized population is helping a greater number of people enter (or aspire to enter) the middle class, which translates into increasing demand for accessible, affordable and consistently high-quality education. Despite this core need, the quality, resources and outcomes in education can vary widely across and within countries.
Furthermore, education doesn’t stop at school. Today, more and more professionals are actively seeking “upskilling” training and mentorship in preparation for in-demand jobs. Education is a field that is changing meaningfully, given that many people cannot pay for universities. Studies, conducted by Learn Capital in 2022, show that students who completed online programs and bootcamps at some of the best education technology companies are earning nearly the same salaries as students who graduated from top universities in equivalent fields.
The proliferation and continuous enhancement of technology in education are making it more accessible—from grade school through job skills, retraining programs and continuing education.
The global pandemic certainly accelerated this decades-long drive toward—and technological innovation of—online education. As this has become more scalable, costs to achieve positive educational outcomes have come down, and access (especially for those in the most vulnerable and remote parts of the population) has significantly improved.
Currently, though, market capitalization of publicly traded education companies represents only 2% of total spend in the sector.1 Another $4 trillion in market cap is expected to be added by 2030 as educational service providers catch up with healthcare companies and other major sectors of the global economy.2
From online education platforms to artificially enabled classrooms and teachers, the intersection between education and technology provides an exciting potential for private companies that can meet this global demand.
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