Common Mistakes Made by Education Startups


Poor Market Research

It’s not difficult to see the many innovative opportunities in education. Not all of these options are required. Some of these ideas are simply too extravagant to be considered in this situation.

Startups that enter the education industry without proper research, aka market research, and competitive analysis, will find it difficult to differentiate between ‘must have’ and ‘fancy app ideas, and ultimately, they will fail to pick the latter.

A lack of patience

The edTech industry’s growth rate is very slow, unlike other business sectors. Most companies only see significant growth after five to ten years of being established, which is very disappointing.

Both investors and entrepreneurs who want to take a larger share of the learning app development market at a faster pace will find this disturbing. Or, better yet, investors and entrepreneurs who enter the market soon lose hope and see the situation as a dead end. There are no other plans.

Unclarity between Customers and Users

Many people install and download an app. Credit goes to the mobile application marketing strategies chosen by the brand. But not everyone buys the product/service offered.

This is why, even though they have 10,000 users, the fastest-growing edtech companies do not generate enough revenue and are not able to stay in the market for long periods of time.

Introduce of unnecessary technologies

Many entrepreneurs are incorporating AI, AR and IoT into their businesses to take advantage of the impact technologies have on the EdTech sector. Some entrepreneurs aren’t considering the potential benefits of these technologies to their business. Or, better yet, how they can engage their target audience, increase sales, or contribute the core app idea.

This is not only contributing to the rising app development costs but also confusing app users. This is why most startups eventually fail.

Teachers Collaboration and Lack of Transparency

Lack of transparency and collaboration among teachers is another reason that many education startups fail to survive in the marketplace.

These startups are looking to replace teachers and other components of the existing education system. They are not open about their work and don’t take in inputs from other teachers. This results in teachers and educational institutions not being interested in these apps or software, which ultimately leads to failure.

 Too many app features

Educational business leaders often introduce too many features to their mobile app development plan, which can lead to a complicated application. This can lead to distractions from the core purpose of the application, lower user experience, as well as less chance of success.

 Insufficient user training

The future of education is and mobile apps have become the new standard in edtech. This is because some entrepreneurs are so eager to launch new products or functionalities and invest in software development for educational purposes that they forget about whether users find them useful. They don’t take the initiative to provide user manuals and other training materials that can help users use the mobile app. They lose the market and fail to retain their target audience.

You now know why edTech ‘innovative ideas’ fail and are not included in the top edtech companies. It is possible you might be asking yourself if it is worth giving up on your education startup ideas.

Spread the love

Every startup is different, and startups in education technology are no exception. Even companies such as Udemy, Coursera and Duolingo with more than $100 million in funding are still learning the ropes as they grow. These companies are known and respected by the public. Yet, they struggle to make a profit. Many startups fail, even though they are relatively unknown. Let’s look at some of the reasons this happens.

Market understanding is lacking

Many startups fail to recognize the diversity and unique nature of the education market. B2B product sales are not limited to school representatives. Startups must also consider children and teachers, as well as parents with different opinions. B2C products are where the company competes with other companies offering similar products. Even though the product features may differ slightly, the customer value is almost always the same. It is important to determine a price that will maximize your profits and still be attractive to customers, just like in other industries.

Startups anticipate high growth from the beginning

Many industries offer high growth opportunities for companies, including e-commerce and taxi businesses. Technology has a lot of potential in education, but it also affects many people, so change is slower. Startups selling their products to these companies are also affected. To achieve more impact and high growth, it may take 15-20 years of hard labour.

It could take up to five years before the product is ready for market

Many people may argue that Khan Academy and Coursera have millions of users. Most people forget that the majority of their users don’t pay for these services. It takes time to set pricing and create strategies in the education technology industry. Many startups fail because they don’t have the resources and time. Startups that want to succeed must focus on survival and trying different strategies so they can determine what works and what doesn’t.

Many startups begin with the wrong revenue model

Startups rush to success and often skip important steps that are necessary to ensure their success. Understanding the stakeholder is an essential step in creating a revenue model. Parents love high quality products at reasonable prices, while educational institutions prefer unique products that can both be purchased at a lower price and sold at higher prices. These desires can help a startup determine its strengths and offer a better deal than the competition.

Incorrect interpretation of early traction

Startups that gain good initial traction mistakenly assume it will continue. They base their future forecasts on this growth because they are optimistic. Many of the initial customers are evangelists who are open to trying new products and giving feedback. These people disappear as soon as the product launches. Startups need to find the next set of customers. These customers tend to be less optimistic and more skeptical, but they are still willing to test the product. These customers are the ones startups should listen to most. They will give honest feedback about how to improve the product and help it gain more traction. Startups need to focus on paying customers rather than their initial customers. This can pose a problem for many EdTech companies that have good initial traction but inaccurate predictions for the future.

Although EdTech can be difficult to enter, it offers great opportunities if the startup company is well-versed in the rules and regulations of the market.

But not exactly.

It is crucial to avoid such failures in order to make a positive history with your edTech company.

We are now ready,

How to overcome edTech failure and grow?


Do a market and competitor analysis

Many education startups fail due to inexperienced business leaders who don’t know the market and what the competition is offering. The first step to reducing the chance of an app failing is to spend your time in the app discovery process and understand your target audience’s needs and wants. This will help you determine the best time and place to start your journey towards success in education and learning.

KPIs are the most important

Many applications fail to convert subscribers, despite winning the race for higher downloads. It is not wise to consider download as the primary parameter in determining success of your mlearning app.

To maximize app revenue and the success of an edTech startup, it is worth considering other mobile app KPIs.

Collaborate With Teachers/Educational Organizations

It’s not hard to see that educators and educational institutions are an integral part of the traditional learning process long before you consider hiring an app development company for education and starting your own business. They know the history of the market, its challenges and the opportunities that have changed the direction of innovation.

It is a smart decision to treat them as a friend and seek their guidance on how to make your educational app more secure, user-friendly, and profitable.

Enhance existing learning systems

Another way to avoid educational startups failing is to see your edTech idea not as a substitute for the existing environment. Be clear about it.

Look at the problems associated with the current learning management system and then look ahead to solving them. This will encourage people in the traditional ecosystem and other stakeholders to embrace your technological innovation solution. This will help you reach a wider audience and reduce marketing costs.

Create an ongoing business model

The elearning market is slow when it comes to revenue generation. It is best to choose a business model that allows you to stay in the market until you make some money with an app.

There are four different monetization strategies you can use to make your business a success.


 Although many people are still unsure how apps make money this monetization strategy has been the most popular. This model allows the user to download and use the mobile app for free. To get a better experience and unlock new features, you will need to pay a certain amount.

Only Pay as you Go 

This business model allows users to only pay for the services and time they use the edTech apps.


This is a business strategy that even top edTech startups such as Coursera follow. It requires a fee to access the product/services for weekly, monthly and yearly periods.

Education startups may consider

 Enterprise Sales when their product requires additional training and integration.


Entrepreneurs are at a crossroads due to the expansion of the edTech industry and the increase in failures of education startups. They don’t know how to enter the market or what opportunities they might miss. Brisk Logic listed the most common reasons for failure in edTech businesses and suggested successful strategies to avoid them.

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