How Gaming And EdTech Businesses Get Together And Make Money

Parents do not always want to buy mobile games for their children—another right when these games help learning. Venture capitalists are ready to invest in businesses where EdTech and gaming startups are combined. 

According to UNICEF estimates, about 1 billion children worldwide go to school on any given school day. Many parents are willing to spend extra money so that their children would do better in school. Even more, they are eager to let their children play games if they are convinced that these games are educational. 

Through this, educational startups use game mechanics, and game companies are interested in creating educational products for children. Rinks of children’s education and games are gradually merging. 

It’s not new information – the school system doesn’t work correctly. So something needs to be changed. It depends on the country, but the school has this long for Academia, especially teachers, in almost every case. However, students often use thesis writers while in Academia.

How Gaming And EdTech Businesses Get Together And Make Money

So, maybe it needs to be changed too. The school doesn’t have to be a place of preparation for university. It has to be an excellent place for our children. It’s a new world, where computer games are allowed. 

Specialized Companies Do Not Only Create EdTech Products

The development of educational technology leads to the creation of a new architecture of education. This is how it affects the industry.

Companies Cooperate With Educational Segments, Especially Schools 

How Gaming And EdTech Businesses Get Together And Make Money

Let’s look at two examples: Kahoot! DreamBox is a popular educational platform for quizzes, quizzes, and educational games, an online software provider specializing in customized math school education. 

The two companies are partnering with school management and teachers to ensure that children use the services and platforms in the classroom and that fathers pay money to sign up. In 2018, the Kahoot!

The team shared with TechCrunch that the product is used by 50% of American schoolchildren, with over 70 million users. And in 2021, the Kahoot! The team reports that it has 550,000 paying subscribers, and the product is used by 87% of the top 500 universities and 7 million teachers worldwide. 

New Teaching Formats And Ecosystems Are Emerging

Education today is not only based on textbooks, worksheets, and assignments. Collaborating with teachers and offering educational products, game companies add interactivity to the learning process and allow children to learn in a familiar environment that does not associate with tedious lessons and homework.

There is also a pragmatic rationale for incorporating games into the learning process. When games are only part of the permit, parents do not always want to buy them for their children and sometimes interfere with their playing time. But when the game – is part of the educational process, necessary to complete homework, most parents buy the game.

How Gaming And EdTech Businesses Get Together And Make Money

The Benefits Of This Format Are Correlated With Well-Known Game Companies 

Roblox is an online platform where you can learn how to develop games and play them. In the report for August 2021, Roblox said that there are 43 million active users on the platform every day. This is 28% more than last year.

Minecraft is a construction game and platform for children to experiment, work, program, and create objects. The team developed Minecraft: Education Edition, which teachers can use to teach, for example, architecture or history. There is a section on the site with tutorials and gameplay courses for teachers to teach them how to play and use it for teaching. 

Fortnite is a cooperative survival game with investigations, gathering resources, building, and fighting. According to the latest report, out of the 350 million users of Fortnite, 67% now are students aged 18-24. The team of the gaming platform claims that schoolchildren also like their games.

Fortnite offers teachers of history, mathematics, natural sciences, and social studies to work on their platform and add interactive activities to the teaching process. To introduce the game in the school classes, teachers created a unique course Fortnite Creative. 

Gaming companies do excellent job-making games, but they do not have methodological expertise and understanding of the educational segment. Because of this, modern methodologies turn to kinesthetic, musical, and artistic activities so that students are focused on educational content for a long time.

Businesses have less expertise in modern teaching methods, but they have experience creating interactive products, gamification, and child-friendly UX. Companies are also engaged and continue to develop educational and gaming products.

How Gaming And EdTech Businesses Get Together And Make Money

Venture Support For Startups Between Gaming And Education 

As soon as schools worldwide closed their doors through the pandemic, the demand for online education increased dramatically. Startups experienced a boom.

Investors Are Expecting More M&A Deals

In an interview with TechCrunch, outside investors agree that the boom in the online retail market will lead to new deals. 

“This is a new way to gain liquidity, which creates a growing consolidation across geographic regions,” Benoit Wirtz, partner at Brighteye Ventures, noted.

Children’s education is close to the gaming industry, and many gaming companies want to cooperate with EdTech companies. Elements are integrated into several educational projects, but the cooperation between the two sectors is moving to a more severe level.

Facts indicate that venture capitalist should expect a lot of edTech startup ideas, which gaming companies will acquire.

Gaming And Education Industries Are Increasingly Becoming

Startups with classical education methods duplicate the school program and do not give businesses a significant competitive advantage in the marketplace. This is not enough to create a state-of-the-art product that will influence children’s interest in learning and attract investors’ attention. This creates interest for businesses in both industries:

Gamifying startups that want to add an educational element to their product need educational methodologies, and they are willing to buy them.

Educational businesses are ready to merge with gaming companies to add to the academic programs mechanics, wine city systems, a component of the competition, etc. The game is a relaxing and entertaining pastime that is not associated with learning, and the relocated mechanics entice children to learn and contribute to greater comprehension of the material.

The most popular option for business mergers is the merger of two companies, i.e., the coalition of businesses to make the product competitive, buy technology or expertise, or bring in a team with complementary skills. When one company is acquiring another, investors can exit and receive a profit from the investment.

The prospect of the merger of EdTech and gaming startups encourages venture capital organizations to invest even more in such businesses.

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