The rising popularity of education apps and the increasing interest from venture capitalists have stoked the curiosity of would-be business owners. They are more optimistic about creating the next BYJU’s, Duolingo, or Udemy, and so increasing their share of the worldwide edtech market.

Knack, Tutorspree, Knack for Teachers, SharpScholar, and TutorsNO – The number of unsuccessful education-related companies grows every year. So many of these businesses aim to break into the market and join the ranks of the most successful edtech companies, but they are ultimately unsuccessful.

If you are a business owner who has considered getting into the edtech market but now feels overwhelmed by the challenges you’ll face, read on: we’ll explain why most edtech businesses fail. We will also provide you with the best information we have to help you avoid the pitfalls that have plagued so many edtech startups in the past.

Therefore, let’s begin by discussing the most common causes of edtech firms’ demise.

7 Common Pitfalls Faced By Education Startups

Several factors contribute to the demise of edtech firms; here, we’ll discuss about seven of the most common ones. In that case, let’s break it down and get a grasp on each one separately.

1. Poor Market Research

There is no doubt that the field of education is ripe with potential for innovation. But not all of them are ‘absolutely necessary. It would be impractical to implement some of those ideas right now.In this situation, it is impossible to distinguish between’must-required’ and ‘fancy’ app ideas, and the startups that jump into the educational industry without conducting appropriate study, market research, and competition analysis end up picking the wrong one. This is one of the main reasons why new businesses often struggle to get off the ground.

2. Lack of Patience

The edtech sector is growing at a glacial pace compared to other business sectors. Uninspiringly, most businesses don’t experience considerable growth during the first 5-10 years after they launch.This is worrisome for business owners and financiers alike, since they all want a piece of the rapidly expanding learning app development market. Second, investors and VCs are notoriously impatient and sometimes get out of their chosen ventures before they show any development, which is a problem for e-learning firms.

3. Unclear Distinction Between Consumers And Customers

Mobile app marketing teams deserve credit for the fact that many customers test out the apps in order to grasp the proof of concept. However, only a small percentage of these “trial” users end up paying for or subscribing to the app’s paid features.This makes it impossible for rapidly expanding e-learning firms to be financially viable in the ever-changing edtech market, even when they have 10,000 or more paying customers.

4. Introduction of unnecessary technologies

Many startups in the education startup (EdTech) space have incorporated artificial intelligence (AI), augmented reality (AR), internet of things (IoT), machine learning (ML), and blockchain technology (Blockchain) into their products.However, few of them consider the value they provide to consumers’ lives or the problems they solve. In other words, how they can attract the desired demographic, boost revenue, or otherwise contribute to the overall app concept.

This is yet another reason why companies fail, since it has contributed to the rising cost of app development and caused confusion among app users.

Let’s use Nova as an example to explore this idea in depth. This blockchain-based digital learning platform is ushering in an exciting new era of educational technology.

Appic Softwares has created a user-friendly and straightforward platform for education. In addition, it addresses a serious problem faced by LMS providers: the certification of fake courses.

As a result, Nova effectively employs technology to solve problems without making its products overly complicated to use.

5. Lack of Transparency And Instructor Collaboration

Lack of communication and cooperation with educators also contributes to the market failure of many education-focused enterprises.These companies are making strides to replace traditional school personnel, including instructors. Therefore, pupils cannot share their working module with lecturers or accept feedback from others. Therefore, schools and teachers aren’t enthusiastic about using these apps (or software), and they don’t end up successfully using them.

6. Too Many App Features

Many heads of schools and colleges overcomplicate their education software by including too many functions in their initial design. The success of an app suffers when its users are diverted from its intended function by unnecessary features.

7. Insufficient user training

Competition in the edtech business is rising to new heights as more and more schools realize the benefits of adopting mobile apps. Because of this, some business owners rush into investing in educational software development and releasing new goods (or functionalities) without giving any thought to whether or not their target audience actually values them.They don’t make an effort to provide users with guides or other training materials that might facilitate their use of the mobile app. As a result, they lose their market because they can’t keep their target audience.

Now that you know what can cause a novel concept to fail, you can better assess the chances of your edtech firm becoming a market leader. Surely at this point you’re reconsidering your plans for an educational startup.It is crucial to learn how to prevent such failures rather than giving up on the education startup ideas if you want to make a different history with your edtech business.

Ways to overcome edtech failure

1. Perform market and competitor analysis

Many business leaders in the education startup  fail to recognize market demands and the offerings of rivals, which is why so many education businesses fail. The best way to reduce the likelihood of an app’s failure is to devote resources to the discovery process and learn as much as possible about the people who will be using the app.

2. on KPIs

As was mentioned before, many apps succeed in attracting more users, but they fail to convert them into paying customers. You shouldn’t base the success of your e-learning software just on the number of downloads in this situation.One can increase their edtech startup’s chances of success by keeping an eye on key performance indicators (KPIs) for their mobile app.

There’s no doubting that schools and other educational institutions have been there l

3. Collaborate With Teachers/Educational Organizations

They have a thorough understanding of how the market has developed since its beginning, as well as the possibilities and threats that have altered the course of innovation.

If this is the case, it is still a good idea to view them as a partner and solicit their input on how to improve the usability, safety, and overall performance of your educational mobile app.

If you want your on-demand tutoring software to stand out from the crowd, you’ll need to include some innovative features.

So, prepare to be excited.

Get in touch with the best educators and schools to learn about pedagogy, how classroom technology affects results, the realities of students’ learning, and the standards they set.

You can also talk to an investor or development firm that has worked on multiple learning app projects for advice.

4. Add Value To Existing Learning System

Another method to avoid edtech startup failure is to view your product not as a replacement for the current system but as an enhancement. Let’s not confuse the issue.

Pay attention to the issues that arise from the current LMS and think about how you may improve it. People in the conventional ecosystem will be more likely to use and recommend your technical breakthrough if you do this. Something that will help reach more people without spending too much time on promotion.

5. Build A Concurrent Business Model

Revenue generation in the elearning app development industry is sluggish, as was said earlier. You should therefore favor a business plan that allows you to stay competitive until your app begins to generate revenueRegarding the same, there are essentially four distinct methods of making money that might propel your company to the next level:

Freemium is the most popular form of app monetization, even if many users are still confused about the business model behind free apps. The mobile app is provided at no cost in this scenario. You can upgrade your experience and gain access to more features by making a financial investment, though.In this pricing structure, consumers pay only for the time and services they actually use the edtech app, hence the name.
The best edtech businesses, such as Coursera, use a business model called subscription, which requires users to pay a recurring fee to continue using the product or service on a weekly, monthly, or yearly basis.

In cases when their product necessitates extensive customer support, integration, and/or training, education companies may look into enterprise sales.
The time it takes to build an app, as well as the likelihood of keeping users once they’ve downloaded it, will both increase if an educational app is too large and complicated. With so many new rivals entering the market every second, it will be challenging to win over consumers’ hearts.

Investing in the Minimum Viable Product (MVP) concept is the greatest method to maximize advantages and minimize losses in such a scenario. That is, including the fewest possible features and technologies into your edtech mobile app in order to get it to market quickly, reduce costs, and prove the viability of your core concept as quickly as possible.

6 Implement Appropriate Technological Measures

It’s not always a good idea to throw every new technology you hear about into your edtech app without a clear strategy on how to use it.

Getting in touch with the top educational app developers may help you choose which cutting-edge technology would be the best fit for your education app project, giving your edtech firm a leg up on the competition.

To what extent may Appic Softwares facilitate the creation of instructional apps?
in Appic Softwares, we’re seasoned pros in bringing cutting-edge pedagogical approaches like gamification, social learning, blended learning, and interactives to educational software features. Also, if you have specific L&D app requirements, we can meet those as well.


Many would-be business owners hope to capitalize on the booming edtech industry and write the next great success story in the field of education. Many education firms have failed due to haste, a lack of patience, and a lack of clarity on their target audience. Businesses can overcome these obstacles by paying close attention to the needs of their target market, working closely with teachers, improving current systems, introducing efficient business models, and launching with a minimal viable product. In order to consult or build an Ed-Tech App you can contact to Appic Softwares. Our team of dedicated developers are pros in developing an Ed-Tech Application.
So,what are you waiting for?
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