The last few years have brought about a revolution in online learning. From continuing professional development (CPD) to distance learning, education in all its forms is starting to embrace its very own digital transformation.
This means there’s a growing need for edtech – the use of technology to enhance the learning experience, making it more individualised, and interactive.
Leading the MENA region in edtech startups, the UAE held a 26 percent share in 2020 alongside expanding investment in online learning. So, what opportunities does online learning present for tech-focused entrepreneurs and investors with an eye on education?
What is online learning?
The term online learning or e-learning is used to describe learning that happens over the internet rather than in a classroom environment. As a market within edtech, online learning uses software, often software as a service (SaaS), to provide educational content such as live classes, recorded tutorials, classroom materials, and even assessments.
For example, the UAE’s free Arabised e-learning platform Madrasa, which launched in 2018, serves children from kindergarten to grade 12. Accessible to over 50 million Arab learners around the globe, the platform is set to include courses in cutting-edge fields such as space science and artificial intelligence.
Why consider starting an online learning business?
More than just a passing trend born out of subsequent lockdowns and social restrictions, this year the e-learning market is forecast to exceed $243bn – up almost $78bn in 2016.
The rising penetration of mobile and internet learning, alongside strong government-backed initiatives, is creating global demand for innovative online learning solutions.
In the UAE, Mohammed bin Rashid Smart Learning Project is currently equipping 400 campuses with 4G technology; while in 2020 Mohammed bin Rashid Al Maktoum Global Initiatives (MBRGI) launched the first digital school in the Arab region which provides flexible remote learning courses to students around the world.
What are the opportunities for online learning businesses?
It’s clear that gaps are opening up for innovative online learning solutions that can cater to a growing market of traditional course providers, such as schools and universities, who are looking to deliver a mixture of offline and online learning.
Online learning is also a preferred choice for many students who need the flexibility to study around other commitments such as work or caring for dependents. Broken down in modules, each part of the course requires a certain number of hours, and credits, which the student accumulates until they reach the required number to complete the course.
Of course, online learning also goes beyond educational institutions. For example, studies show that 70 percent of research and development (R&D) departments in the US use a learning management system (LMS) to handle their entire learning programme, from planning and delivery to assessments and recording progress.
How do you find your online learning niche?
You may have read a lot recently about ‘niching down’. It’s particularly important in the internet age, where every interest and industry has its own subgroups represented online. When a business niches down, it focuses on a very specialised segment of the market. For example, you might be an edtech company in the industry, but your focus might be on delivering educational content in Arabic to undergraduate students based in Europe.
A great example of this is UAE-based startup iKew, a video on demand platform providing training, motivational speeches and edutainment for students. They specialise in content delivered in Arabic from non-native English speakers. And remember: while a niche might seem comparatively small, there’s no reason why you can’t broaden out your offering once you’ve got a handle on a particular segment of the market.
How can online learning startups attract funding?
With so much public money invested in education around the world, it makes sense to do the research in order to find a country or region which is openly embracing the use of online learning.
As with any business, it’s also important to identify the types of investors you’re likely to attract, so it goes without saying that you need to present potential investors and customers with a clear picture of your business at a high level. You’ll also need to clearly communicate the benefits of your solution in the long term. How will it adapt? What are your long-term goals?
Part of a broad and varied sector
The education sector is broad and varied. Interest and investment in online learning is increasing, in some parts of the world more than others. For tech startups and small businesses, education presents a growing if slightly unpredictable market.
However, if you know your niche, and get to know your audience well enough, there are clear opportunities to be had. Try putting some SaaS into education.