What's Next for Education Startups in 2019 (Part II) | Summary and Q&A

TL;DR

China's online education market is booming, with 150 million users and expected to reach 300 million by 2020. It is a $40 billion industry that is changing the way adults learn and improve themselves.

Key Insights

• 🚗 China's online education market is driven by mobile-first and mobile-only platforms.
• 🎰 AI and machine learning are used to enhance learning experiences and offer personalized feedback.
• 🎓 Adult learners are the largest group in the online education market, seeking self-improvement and skills beyond traditional education.
• 👨‍💼 There is a need for innovative business models to monetize education content and provide better value for learners.
• 🚗 Mobile-first platforms have the potential to revolutionize education by offering bite-sized and interactive learning experiences.
• 😌 The future of education technology lies in offering diverse and specialized courses to cater to different learning needs.
• 🪡 Cultural support for paying for education needs to be fostered to encourage investment in lifelong learning.

Transcript

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Questions & Answers

Q: Why is China's online education market booming?

China has embraced mobile-first and mobile-only environments, with a high penetration of smartphones and widespread use of mobile payments. This has led to the rapid growth of the online education market.

Q: Why are adults the largest group in the online education market?

Online education for self-improvement appeals to adults who have already graduated from college. They seek to expand their knowledge and skills beyond what traditional education offers.

Q: How are AI and machine learning being utilized in online education?

Companies like Lingo Champ and VIP Peilan use AI and machine learning to provide personalized learning experiences. Lingo Champ focuses on language learning, while VIP Peilan offers music lessons, leveraging these technologies to offer accurate assessments and feedback.

Q: What are the challenges in the current education technology market?

Many education technology platforms rely on advertising or one-time expensive tuition fees. There is a need for business model experimentation to create platforms that offer affordable and high-quality learning experiences without relying solely on ads.

Summary

In this video, Frank Chen interviews Connie Chan, a General Partner at a16z, about the future of lifelong learning. They discuss the success of online education in China and the opportunities for education startups in the West. They highlight the importance of mobile-first platforms, the use of artificial intelligence and machine learning, and the need for business model experimentation in the education space.

Questions & Answers

Q: How big is the online education market in China?

The online education market in China currently has 150 million users and is expected to grow to nearly 300 million by 2020. It is a $40 billion industry that is expected to reach $70 billion. The largest group of users in online education is the 26-35 age group.

Q: What are some examples of startups in China that are using artificial intelligence and machine learning for education?

One example is LingoChamp, a language learning app that allows users to have conversations in English by speaking directly into the app. This app uses machine learning to help users improve their pronunciation. Another example is VIP Peilian, a mobile app that teaches piano and other instruments. It uses machine learning to help teachers score student performances and provide feedback.

Q: Why is Asia ahead in terms of mobile-first and mobile-only education platforms?

Asia is more mobile-first and mobile-only because people in Asia rely heavily on their phones for various tasks, including shopping, communication, and payments. Mobile payment systems are more prevalent in Asia, making it easier for people to make payments on their phones. Additionally, Asia has developed AI and machine learning technologies that allow for the creation of innovative education platforms.

Q: What are the challenges in building education platforms in the West?

The main challenge in the West is the lack of cultural support for paying for education. In China, education is considered a household expense and is a priority for many families. In the West, there needs to be a shift in mindset to view education as a valuable investment. Additionally, current ad-based models for monetizing education content on platforms like YouTube are not conducive to providing in-depth, high-quality content.

Q: How can entrepreneurs in the education space succeed?

Entrepreneurs should focus on building mobile-first platforms that utilize the unique features of mobile devices, such as GPS, microphone, and camera. They should also experiment with different business models and avoid relying solely on ad-based revenue. Creating platforms that allow creators to monetize their expertise and offer a variety of content formats, like audio and PDF, can help attract and retain users.

Q: Do you think there will be one platform that caters to both hobbyist and self-improvement education?

It is possible to have one platform that caters to both types of education, but it is also possible to have specialized platforms for each. Currently, there are workout apps that offer different instructors for different fitness goals. The key is to provide options and allow users to choose based on their specific needs and interests.

Q: How can the education spending pattern be flattened out?

To flatten out education spending, there needs to be a shift from viewing education as something only done in college to a lifelong process. This requires offering education at different stages of life and making it more accessible through mobile platforms. Experimenting with different business models and offering a variety of content formats can also help attract more customers and encourage ongoing learning.

Q: What advice do you have for entrepreneurs in the education space?

Build for mobile first and focus on utilizing the unique features of mobile devices. Experiment with different business models beyond ad-based revenue. Consider offering per-course payments and providing incentives for users to sample courses before committing to a subscription. Focus on providing high-quality, in-depth content rather than just chasing page views.

Takeaways

The future of education is mobile-first and AI-enabled. The success of online education in China serves as inspiration for education startups in the West. To succeed in this space, entrepreneurs should build mobile-first platforms that leverage the unique features of mobile devices. Business model experimentation is key to finding the right incentives for both creators and users. Education spending should be flattened out over a lifetime rather than concentrated in college. Providing high-quality, in-depth content in various formats can help attract users and encourage lifelong learning.

Summary & Key Takeaways

• China's online education platforms designed for mobile are driving the rapid growth of the market, with AI and machine learning unlocking new learning features and benefits.

• Self-improvement in online education is the largest category, with users aged 26 to 35 leading the demand.

• Companies like Lingo Champ and VIP Peilan are using mobile and machine learning to offer language learning and music lessons at affordable prices.