It is difficult to pinpoint the primary function of an EdTech company—a term that stands for EDucational TECHnology. First and foremost, its essential function is undoubtedly to develop solutions and technologies that support the teaching and learning process and contribute to improving the quality of education.

Far beyond simply developing software, educational apps, and platforms, and providing data analysis and artificial intelligence—to name a few examples—edtech companies are responsible for the entire educational ecosystem of which they are an integral part, where the goals involve schools, universities, students, parents, teachers, the community, and other stakeholders across the educational spectrum.

It can be said that there has been a turning point in the performance of edtech companies, as well as in their impact. Yes, this turning point was the COVID-19 pandemic, when—despite the advances seen over the past few decades—it was necessary to “change a tire while the car was already moving.”

It was precisely during the pandemic that Layers Education, one of the leading companies in the sector in Brazil, took a closer look and conducted a survey that revealed that technology in education had made 10 years’ worth of progress in just a few months. Drawing on the past and looking toward the future, Danilo Yoneshige, CEO of Layers Education, believes that the next challenge is to open the doors so that more innovative companies can enter the education market and bring even more solutions to educational institutions.

“We do this through our ‘edtech hunters’—professionals who are dedicated to understanding the industry’s main ‘pain points’ and identifying startups and their available products and services. This way, schools can discover the solutions that best fit their specific needs,” says Yoneshige.

The impact of edtech companies on education is also reflected in the figures reported by the sector in recent years. About 82% of edtech companies were founded in 2016 or later. This growth has become even more evident over the years, given the maturity and expansion of edtech companies, particularly between 2016 and 2020, when a 60% increase was observed. Despite the challenges—and taking into account the pandemic years—the sector saw a 40% increase in the number of edtech companies within the startup ecosystem from 2020 to 2022, according to data presented in the ABStartups report. 

“During the pandemic, edtech companies have become even more important to education, allowing schools and educational institutions to continue their activities even amid social distancing restrictions and, as in-person classes resumed, helping to organize student flows, reduce crowds, and even monitor symptoms and COVID-19 cases among students and staff,” says Leo Gmeiner, co-founder and CEO of School Guardian.

Road to be built

On the other hand, expanding the reach of edtech companies and their impact on Brazilian education is still a path yet to be forged. Based on 2022 data, the majority of edtech companies (55%) are concentrated in the Southeast of the country, with 38% located in the state of São Paulo. The Northeast accounts for 17%, the South for 19%, the Midwest for 5%, and the North for 4%. By sector, 40% serve K-12 education, 23% higher education, 19% early childhood education, 16% language learning, and 38% corporate training. 

This national landscape also demonstrates the importance and impact of edtech companies, especially in remote areas or those with limited access to education. According to Tony dos Santos, secretary of Sieeesp (Union of Educational Institutions in the State of São Paulo) and CEO of Diversidade Editora, one of the key contributions of edtech companies is expanding access to education through online platforms, which allow students from different regions of the country to access high-quality educational content at a more affordable cost.

“Edtech companies play a key role in transforming Brazilian education. They help democratize access to quality education, personalize learning, overcome geographic and economic barriers, improve student engagement, and change the way teachers teach and students learn, creating a more effective and accessible education for everyone,” says Santos.

Another key area of impact and relevance lies in the adoption of these technologies in schools, universities, and other educational sectors. The top five products and solutions incorporating educational technologies developed by edtech companies in the Brazilian education sector are: Digital Platforms (69%), Gamification (54%), E-learning (49%), Cloud Computing (38%), and Artificial Intelligence (35%).

In this technological landscape, in addition to playing a leading role in an increasingly connected world that is deeply integrated into education, edtech companies have a role and responsibility that pertain to society and its civilizational pact as enshrined in law. This is particularly relevant when it comes to managing the amount of time children and adolescents spend on digital media, as well as data protection, compliance with the LGPD (General Data Protection Law), and sector-specific regulations, which include educational institutions themselves.

“It is true that excessive use of technology can have negative effects on children and adolescents, but that does not mean that edtech companies cannot be beneficial to teaching and learning. One way to think about this is that edtech companies should always seek to develop solutions based on a deep understanding not only of the problem itself, but also of what educators think about those problems and solutions,” Gmeiner points out.

According to Tony dos Santos of Sieeesp, while respecting legal considerations, the goal is, above all, to provide benefits that help create a more efficient, accessible education system tailored to the individual needs of each student. “Edtech companies have the potential to bring real benefits to the advancement of Brazilian education by offering access to quality education, personalized instruction, greater student engagement, analysis of educational data, and the modernization of education,” he notes.

From an institutional perspective, it is important to consider diversity within an educational institution. Yoneshige explains that there are students with different abilities and preferences for learning through the senses of speech, hearing, sight, and others, and that technology can help teachers address each student’s individuality and enhance learning.

“With so many tools available, teachers may feel overwhelmed in their day-to-day school life, unsure of how to manage the use of cell phones, tablets, and other devices. This is especially true because teacher training programs haven’t taught teachers how to handle these situations—they learn on the job. Investing in teacher training is also essential to help them deal with these situations,” adds the CEO of Layers Education. 
 

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