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Top Ed-Tech Trends of 2016 A Hack Education Project The Business of Education Technology In previous years, when I’ve written about this topic, I’ve saved “The Business of Ed-tech” for one of the last articles in my “Top Ed-Tech Trends" series. If nothing else, I’ve wanted as many days in December to pass as possible so that my calculations for the total amount of venture funding invested during the year were as accurate as I could get them to be when I hit ”publish.“ This year, however, I’ve scheduled this topic earlier, which means I can’t really offer a finalized list of the year’s ”Most Well-Funded Startups“ or ”Most Active Investors." I will do that in a separate article at the end of the year. But even without knowing the funding data for the month of December, I can say a lot. I think it’s safe to say, for example, that venture capital investment has fallen off rather precipitously this year. True, 2015 was a record-breaking year for ed-tech funding – over $4 billion by my calculations. But it appears that the massive growth that the sector has experienced since 2010 stopped this year. Funding has shrunk. A lot. The total dollars invested in 2016 are off by about $2 billion from this time last year; the number of deals are down by a third; and the number of acquisitions are off by about 20%. “This Tech Bubble Is Bursting,” The Wall Street Journal pronounced back in May. That’s not a new prediction, by any means. We’ve heard this for years now. “The Tech Bubble Didn’t Burst This Year,” Bloomberg cautioned in October, “Just Wait” – suggesting that what the future might hold instead of an outright bust is “several years of relative stagnation.” (But who knows what shape tech investment will take under a President Trump.) Bust or not, companies across the tech sector, particularly those with high “burn rates”, faced tough choices in 2016: “cut costs drastically to become self-sustaining, or seek additional capital on ever-more-onerous terms,” as The WSJ put it – that is, if they were able to raise additional capital at all. Even without providing you the final tally of funding for 2016, I can point to other signals about what’s happened to ed-tech startups over the course of the last twelve months – their sustainability, their viability. (Or lack thereof – see “The 2016 Ed-Tech Dead Pool.”) You might read the signals of the health of ed-tech startups in the departure of their founders – both from leadership positions and from their companies altogether. Daphne Koller left Coursera this year. Sebastian Thrun stepped down as Udacity’s CEO. Jen Medbery stepped down as CEO of Kickboard. Remind co-founder Brett Kopf was replaced as CEO by Brian Grey, formerly CEO of the Bleacher Report. NovoEd co-founder Amin Saberi was replaced by Ed Miller, a former Blackboard exec. That’s what happens when you raise millions of dollars in venture capital: venture capitalists have a greater say in