This is a guest post by Michael Staton for the On the Horizon series on distributed learning environments. Michael studied poverty alleviation for his BA and MA at Clark University, where he developed a lifelong commitment to education and entrepreneurship. He then spent 3 years as a high school educator and was thrust into internet start ups in the education space. Seeing Facebook Platform as a disruptive opportunity, he co-founded Inigral, Inc as a consumer internet company set out accelerate real world relationships in an academic context using the product “Courses on Facebook.” Courses quickly gained traction in the Fall of 2007 and Founders’ Fund, an investor in Facebook, made a Series A investment. Inigral is also about to release a product to help K-12 educators cope with the pressures of the accountability movement. Michael is also the author of the Edumorphology and College Readiness for the 21st Century weblogs.
I spend most of my time in the midst of internet entrepreneurs. I work in an office with four other internet companies, go to beta launches in San Francisco, and attend panel discussions in Silicon Valley. Something that is conspicuously evident is that I’m one of the few entrepreneurs trying to solve problems in education. Another thing that’s evident, as ironic as it sounds, is that many internet entrepreneurs have given the problems in education considerable thought, many have even tried to contribute to or build a product to address needs in education at some point.
Start-ups in education are rare, but it’s not for lack of desire to work in the space. Venture Capital appreciates the education market size: it’s huge. Everyone gets an education, and mind-numbing amounts of money are spent to that end. Entrepreneurs tend to be young risk takers, and their first-hand knowledge of problems in the education sector is ripe. However, very few go-getters can convince an Angel Investor or VC that their product for the education market is worth an investment. To boot, older entrepreneurs advise young ones to stay away from the space. Why the reluctance? The market barriers.
In my paper, I comprehensively address barriers to market entry into the education market and propose some easy solutions. I focus on a set of interdependent forces particularly destructive to outside innovation; there is a causal relationship between public rhetoric and legal protections based on misunderstandings of internet use and political decision making, creating a risk-averse, zero sum purchasing process that requires an abnormally large and unhealthy investment in sales and support efforts.
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