Success in the Evolving Online Program Management Market
Technology adoption, digital disruption, distance learning, positive student outcomes, enhanced revenue opportunities…. As an education investment bank, we have heard a lot from online program managers (OPMs) that seek to change the long-time, ivory-tower model of higher education. Ten years ago, barely a handful of providers were addressing the needs of universities to take their courses online, widening the ‘moat’ of students who could benefit from distance learning. With the myriad of providers now competing in the online market, the question we ask ourselves is, “which providers will stand the test of time?”
The Confluence of Education and Workforce Readiness
More and more, we see education companies creating solutions for human capital management. Similarly, talent management and HR technology companies are offering education-related content and tools to support lifelong learning. As an education investment bank, we are continually asking ourselves, what does this mean for the education industry and our clients?
Tuition Reimbursement Programs and Policy at a Glance
The decision to pursue a higher education degree has become increasingly difficult as tuition costs continue to rise. The average cost of a bachelor’s degree is over $25,000 per year, which reflects a compounded annual growth rate of 5.5% over the last 30 years. To help ease the financial burden of higher education, many companies offer tuition reimbursement programs to employees as a supplement to their existing benefit packages.
Growth in Online Higher Education
College graduates can all relate to classes taught in lecture halls with sometimes up to several hundred other students. Today, it is not uncommon to take at least one college course without ever meeting another classmate. The ubiquity of technology in education is transforming the way students learn but also the way that courses are taught. Particularly in higher education, the once non-traditional method of online learning is now part of a new norm.
Learning Puts on its Gameface
If you ask an elementary school student if they would rather read a textbook or play their favorite game, I bet you can guess the most common answer. Fortunately, an increasing number of opportunities exist to bridge the gap between learning and fun. As an education investment bank with 15 years of history serving clients in the quickly evolving education space, MHT Partners is ever focused on the different learning methods at play in today’s modern classroom. One such approach loved by educators, parents and students alike is digital, game-based learning.
MOOCs: Expanding Education for the Lifelong Learner
Massive Open Online Courses (“MOOCs”) have come a long way since they were first developed six years ago. What once began as free online courses provided by just a handful of universities has now developed into an impressive 9,400 courses with participation from more than 800 universities. MOOCs were created with the goal to increase access to higher education globally. However, as the popularity of the programs grew, educators began to worry that MOOCs’ online approach and (initially) free courses would shake up traditional teaching pedagogies and disrupt the post-secondary education system.
Nothing Artificial About the Future of Student Intelligence
The world now boasts robo-advisors who pick stocks for investment portfolios and GPS apps that give drivers traffic forecasts for their morning commutes; Artificial Intelligence (“AI”) already impacts lives on a daily basis. Historically, education has been slow to adopt new technology, but it is unable to escape the far reach of AI. While still nascent in the world of education, AI presents tangible opportunities to better the way students learn.
What Makes a Successful EdTech Company?
Over the last decade, MHT has met with numerous education technology (“edtech”) companies that are all tackling similar pain points. As education investment bankers, we are asked repeatedly by investors and entrepreneurs what attributes make a company successful. There is no singular characteristic. In fact, the most successful companies typically have several. While we can’t cover all of them in one article, below are some of the more important ones:
Who’s Driving STEM Education?
As a long-time global leader in STEM fields (Science, Technology, Engineering and Math), American scientists and innovators have accomplished many extraordinary and once unimaginable feats. From Thomas Edison’s invention of the light bulb to Neil Armstrong’s famous first moonwalk, there is no shortage of contributions that America has made to the scientific community over the last two centuries. In recent years, however, America has begun to fall behind other developed countries in STEM fields.
Growing Popularity of the Gap Year
It is no secret that students aspire to a college degree due to the broader employment opportunities and increased lifelong wages that come from it. However, not all millennials view going to college with the same urgency as in the past. As an education-focused investment bank, we are seeing an emerging trend among students to take a break (typically one year) from academics to pursue other interests.