These Entrepreneurs Are Propelling the $200 Billion E-Learning Industry To New Heights

A desire by many worldwide to learn new skills and adapt to a rapidly-changing world, coupled with continued technological innovation, has propelled the rapid growth of e-learning platforms.

The concept of online learning is still relatively new, first emerging in 1994 after CALCampus unveiled a virtual school for major telecommunication networks like AOL and CompuServe.

Nearly two and a half decades later, the coronavirus pandemic has forever altered the world of digital learning in ways few expected, and on a timeline even fewer could perceive. Schools across the globe largely struggled in Spring 2020 to keep students focused and engaged at home as pandemic restrictions triggered sudden shutdowns of in-person learning.

As the year progressed, countless students entered new educational territory as they engaged in remote learning. Many had never taken an Internet-based course and even fewer (just 18% of tertiary-level students in the United States in 2018) had learned online exclusively.

COVID’s Acceleration of the E-Learning Industry

Many students and teachers adapted and adjusted to using digital learning platforms. While concerns were raised about the importance of students socializing and interacting with educators in-person, the flexibility of e-learning allowed for new teaching strategies and the democratization of learning as educational institutions made more online courses available.

As a result, many now speculate the advantages e-learning offers students across the globe, along with a greater desire among many to enhance skills and pursue self-development, will rapidly propel an already booming e-learning ecosystem to new heights.

The world of e-learning was already on track for explosive growth before the coronavirus. An April 2020 report projected the industry’s compound annual growth rate would sit at more than 14% from 2019-2025.

According to the report, positive market expansion would most likely be fueled by increased Internet access across emerging economies alongside the advent of cloud-based infrastructure, open content creation, and the ability of e-learning providers to offer cost-competitive courses.

Opening Different Doors With Funding Educational Innovation

Research from Global Market Insights revealed the total size of the e-learning market surpassed $200 billion in 2019, with projections trending upward to a total size of $375 billion by 2026. Educational technology platforms in the United States raised more than $2.2 billion in 2020 alone, a nearly 30% increase from 2019.

Much of the current investment into the educational technology landscape is driven by venture capital activity, spurred on by the ever-present (event amid a pandemic) opportunities and challenges presented by cutting-edge fields.

Recent patterns suggest venture capital entities are more interested in “accelerating existing technologies that are poised to engage substantial numbers of new users during the crisis, rather than seeking blue-sky investments in new, riskier innovations.”

This emphasis on startups who are already established, as opposed to funding entirely new ideas, fulfills interests in supporting educational platforms equipped to stop “learning loss,” an unfortunate reality many students, especially younger ones, endured due to the pandemic.

Investment money continues to flow into these types of projects amid economic turbulence due to the coronavirus.

One established e-learning platform geared towards younger children, Tilli, enjoyed rapid growth last year after receiving money from private venture capital club Digital Disrupt.

Focusing on preparing children in Russia for school, the platform features games and educational resources for kids aged two through eight, corresponding to education standards set out by the Russian government. Tilli enjoyed a 25x user increase in 2020.

While Digital Disrupt does not function as a normal VC firm, eschewing pooling capital in exchange for bringing club members, partners, and investors together who share common goals and aspirations, the firm’s investment patterns into other e-learning platforms and tech innovation look set to continue reshaping online learning.

Digital Disrupt, Propelling The Growth Of Global Tech Visionaries

In 2020, Digital Disrupt successfully completed its first investment exit in another Russian-based e-learning company, Tetrika. The platform that helps students prepare for online exams was purchased by Mail.ru last year.

The purchase gave Digital Disrupt a large amount of capital to allocate towards other tech companies and early phase startups who present ideas in line with the club’s vision.

Online education and other cutting-edge learning models are just one of several investment areas Digital Disrupt focuses on. According to founders Andrey Belozerov and Artem Ermolaev, their custom investment solution model is based on the individual interests of the startups and companies they work with.

Belozerov, a Russian entrepreneur and investor with a portfolio including Momentus, and PitchMe, co-founder of Digital Disrupt Venture Club also serves as the United Nations Development Program Expert in the field of Smart Cities. Ermolaev, also co-founder of Digital Disrupt Venture Club, serves as a board member of the CIS real estate developer MR Group and is also known for investments in late stage corporations like Gauzi, Kraken, Interkom and other early-stage Russian edTech and mobility startups.

Under the leadership of Belozerov and Ermolaev, Digital Disrupt focuses on investments into entities that can demonstrate elements like a minimum viable product, initial sales, and test results related to marketing hypothesis and product promotion channels.

The co-founders explain Digital Disrupt’s investment portfolio largely centralizes on three areas; strategic investment in large companies like Momentus, projects with strong growth potential (e-learning platforms Tilli and Tetrika), and entrepreneurship projects working in untapped markets, especially across Africa.

Key areas of interest also include eSports startups, applied artificial intelligence, and innovations in deep technology.

Companies and startups who successfully demonstrate viability receive additional benefits beyond Digital Disrupt funding. Business owners can utilize the club’s network to prospects for clients, partners, or additional investors, rely on project evaluation resources to gain outside perspective and receive expert mentorship on legal and global marketing concerns.

Digital Disrupt’s Interest In Bringing The E-Learning Industry to New Frontiers

Online education and innovative learning models remain one of Digital Disrupt’s primary interests. Belozerov and Ermolaev express a desire to work with companies that have strong prospects of entering various foreign markets.

The instantaneous feedback loops and the potential for machine learning to enhance education give the e-learning industry’s immense potential, especially for nontraditional students or those more shy or reluctant to participate in a traditional classroom setting.

With multiple successful investments in rapidly-growing digital learning platforms, Digital Disrupt’s savvy market research and future vision look set to capitalize on the burgeoning e-learning industry and its potential to replace large swaths of in-person ‘land-based’ learning.