Mobile App Development

Reasons Why Edtech Startups Fail and Ways to Overcome Them: An Overview

Reasons Why Edtech Startups Fail and Ways to Overcome Them: An Overview

In recent years, there’s been a boom in ed-tech startups. However, many of them have failed to live up to the hype. In this blog post, we’ll explore some of the main reasons why education startups fail and ways to overcome the involved causes. We will also discuss how partnering with a domain-expert education software development company can help your education startup. 

According to Statista’s stats, the education market is expected to reach 10.4 billion by 2025. So, you can see how you can reserve your market space in the EdTech industry by implementing the right strategies and overcoming potential issues.

All you need is to perceive the challenges faced by EdTech startups and ways to overcome the obstacles, and you will be able to give your own venture a better chance at success.

Reasons Why EdTech Startups Fail

EdTech startups can fail for a variety of reasons, including lack of innovation and poor market fit. Without an innovative product that solves an existing problem in the education space, EdTech startups are unlikely to succeed. So, let’s uncover the potential reasons:

Lacking market research

Poor market research is one of the primary reasons why education startups fail. Without proper market research, it’s difficult to determine the needs and wants of the target audience. You must understand how people see education, what their needs are, and how your startup can provide a unique solution. Without this knowledge, it’s impossible to create a successful product or service. However, a trustworthy mobile application development company can help you with adequate research ensuring market success.

Introducing more technology

The use of unnecessary technologies can be a major roadblock for businesses and entrepreneurs, particularly in the education sector. In today’s digital world, it is becoming increasingly important to make sure that technology is being used effectively and efficiently, ensuring seamless digital transformation for your education startup.

When companies or individuals utilize technologies that are not necessary for their goals, they risk wasting valuable resources such as time and money. Furthermore, this can lead to decreased productivity and missed opportunities due to a lack of focus on more pressing projects. 

By avoiding the use of unnecessary technologies, businesses and entrepreneurs can ensure they are using their resources wisely while also maximizing potential growth opportunities.

Deploying too many features

Deploying too many features is one of the critical reasons why education startups fail. Having features that are not necessary can be a significant burden on the development team and slow down the overall progress of the project. 

It’s important to focus on the core features and ensure that each one is thoroughly tested before they are released. This will help to ensure the product or service meets the needs of customers and avoids potential roadblocks in the future. Here availing of expert solutions from industry-proficient mobile app developers can help you build an education app equipped with the right yet personalized set of features supporting your startup to prevent it from being failed.

Not providing sufficient end-user training.

Insufficient user training is another common reason why education startups fail. With a lack of proper guidance and instruction, users are unable to use the product or service correctly. This can result in a decrease in customer satisfaction and, ultimately, the failure of the startup.

It’s crucial to provide comprehensive user training, guides, and documentation, as this will help customers understand the product or service better and ensure that they’re able to use it effectively.

Lacking to differentiate customers and users

When creating an education startup, it’s important to distinguish between the consumers and customers of your product or service. Consumers are those who actually use the product and receive a tangible benefit, while customers are the ones who purchase it. Both of these groups should be targeted in your marketing efforts; otherwise, you won’t have the customer base necessary to ensure success.

Not having patience

Another common reason why education startups fail is a lack of patience. While it can be tempting to try and launch a product or service quickly, it could be an unprofitable deal as well. Patience and strategic thinking are crucial for the successful launch of an education startup. 

Once the product or service is launched, there must be a plan in place to continually refine and improve it, as well as promote its success.

Potential Ways to Overcome the Ed-Tech Failure

Ways to overcome EdTech startup failure involve a comprehensive approach that considers multiple aspects of the business. Here are the potential ways to overcome the EdTech startup failures and ensure the footprints toward making it a successful venture:

Perform adequate market research

When it comes to launching a successful education startup, proper market research is essential. Without it, it’s impossible to create a product or service that meets the needs of customers and provides a unique solution.

It’s also important to be patient, focus on the core features, and provide comprehensive user training. By following these guidelines, you can ensure that your education startup has the best chance of success.

Drive competitor analysis

When launching an education startup, it is essential to conduct a thorough competitor analysis. This will help to identify key players in the industry, their strengths and weaknesses, and opportunities for growth. 

By understanding the competition, a startup can create unique features or services that will set them apart from their rivals. Additionally, it’s important to understand the market trends and customer needs in order to create a product or service that meets their demands. 

Ensure seamless collaboration

It is important to work with teachers and educational organizations when launching an education startup. This means having a platform for instructors to collaborate and get the resources they need. It also means being open about what resources are available so everyone knows how best to help students learn. Doing this will help teachers do their job better, which will make sure students are getting the best education possible.

Focus on the monetization model

A successful education startup needs to have a monetization model that is designed to maximize revenue while minimizing unnecessary expenses. One way to achieve this is through developing multiple revenue streams, such as subscription plans, advertisements, and in-app purchases.

Subscription plans are an ideal option for many education startups, as they offer a recurring income with minimal effort. Additionally, advertisements can be utilized to generate revenue without detracting from the user experience. Lastly, in-app purchases can help to monetize the app by providing users with additional content or features for a fee.

Before launching any of these monetization models, it is essential to do thorough market research and competitor analysis so that you can understand the needs and trends of customers.

Moreover, it is important to understand the legal and regulatory requirements for online businesses in your region. By doing this, you can ensure that your monetization strategy is compliant and effective. 

Launch MVP first

Start with an MVP version of your product that includes basic features such as instructor collaboration and transparent access to resources. Utilize a concurrent business model that generates multiple revenue streams simultaneously in order to maximize growth while minimizing unnecessary costs. 

Finally, develop monetization models such as subscription plans, advertisements, and in-app purchases in order to generate revenue from users. Doing this will help you create a successful education startup that meets customer needs and provides value for students. However, connecting with a market-leading software development company can help define the right MVP deployment reinforcing your education/learning app success.

Leverage right technology

One of the most important technologies that an educational startup needs to integrate is a learning management system (LMS). An LMS allows instructors to easily create courses and manage students, as well as provide a platform for collaborative learning. 

Additionally, it can be used to track student progress, assign grades, and facilitate communication between teachers and students. However, hiring the right education software development company can suggest and implement state-of-the-art technology integration in your education startup.

How to Find the Right App Development Partner for Your Education Startup?

Finding the right app development partner for your education startup can be challenging, but there are several steps you can take to make sure you select the most suitable partner. 

First, create a list of criteria that you need in an app development partner. This should include factors such as experience, reputation, cost-effectiveness, and customer service. 

Consider looking into customer reviews and conducting interviews with potential partners to assess which one would be the best fit. 

Once you have selected a partner, make sure that you communicate your goals and expectations clearly so that they can deliver a successful product. 

Finally, launching an education startup is more than just building an app; it also involves creating a comprehensive business plan. This should include a marketing strategy, pricing model, and monetization plan that will help you maximize revenue while minimizing costs. 

By creating a comprehensive plan and utilizing the right resources, you can ensure that your education startup is successful in meeting customer needs and providing value for students. 

Additionally, be sure to understand and adhere to applicable laws and regulations in your region. Doing this will ensure that you are compliant with relevant rules and regulations while also optimizing the effectiveness of your monetization strategy.

With the right resources, technology, and partners, launching an education startup can be a rewarding experience that provides students with the best possible outcomes. Utilizing these resources and following the steps outlined will help you create a successful startup that meets customer needs and provides value for modern learners.

How ScalaCode Helps You Ensure Sustainable Education App Development

At ScalaCode, we build user-friendly and market-sustainable applications for education startups to thrive and drive productive results. We comprise extensive experience in developing education apps comprising all the requisite features and functional navigation ensuring user adoption and driving results.

Our domain expert team can equip your app with education app features like gamification, blended learning, social learning, and other engaging activities that drive not just users, but also help you gain potential customers who subscribe or pay for the premium courses or learning resources you provide.

Features that Every Education App should Deploy

  • A user-friendly interface that allows students to easily access their courses and assignments.
  • Learning management system (LMS) to easily create and manage courses, track student progress, assign grades, and facilitate communication between teachers and students. 
  • Push notifications to remind students of upcoming deadlines, events, or tests.
  • Secure authentication and data encryption to protect student information and accounts.
  • Gamification elements such as badges or rewards for completing tasks or achieving goals.
  • Integration with popular third-party tools such as Google Classroom, Canvas, Zoom, etc.
  • Analytics dashboard to track usage patterns and identify areas of improvement in the app’s design or content delivery.

To sum up!

Launching an education startup involves careful planning and strategic decision-making. By leveraging the right technology, developing multiple revenue streams, and selecting an experienced development team, you can maximize your chances of success. Further, to come up with your queries, connect with the techno-functionals at our education software development company. We will help you to easily embark on your journey.


Abhishek is a multifaceted professional who seamlessly blends his expertise in content creation with his passion for customer success. As a blog author, he provides insightful and engaging content, drawing from his extensive experience in nurturing client relationships and ensuring their journey with our company is both successful and satisfying. Abhishek's unique perspective on customer engagement and his ability to articulate complex ideas into relatable content make him a valuable asset to our team and a trusted voice for our readers.