Spotlight: AI x Education (continued) Discussion Group Series
At Rethink Education, the thoughtful integration of Artificial Intelligence (AI) in education remains a central focus for us. We are continuously exploring new advancements and participating in meaningful discussions to stay alert and informed, with our AI x Education Discussion Group Series being a prime example.
Led by Monique Malcolm Hay, senior associate at Rethink Education, and in collaboration with the Robin Hood Foundation, the AI x Education Discussion Group Series brings together leaders in AI and education to explore the transformative potential of AI technologies. We launched the series in early 2024 and are excited to share highlights from our most recent conversation.
On July 23, we were joined by Matt Vail from OpenAI and Amanda Bickerstaff from AI for Education, who shared valuable insights into how AI is reshaping both classrooms and the workforce. We discussed the latest developments in AI-powered tools for education, including the launch of Chat GPT EDU, an initiative offering discounted AI tools to educational institutions. These tools are designed to support staff with personalized tutoring, resume reviews, research task automation, and more, all while prioritizing security with features like single sign-on and enhanced data protection.
The conversation addressed the AI black box problem, focusing on strategies to mitigate risks like hallucinations by building guardrails around inputs and outputs. We also explored the challenges and opportunities of integrating AI into school systems. Concerns about student safety, privacy, and skepticism around AI’s reliability were prominent, as many districts remain cautious of AI’s impact in education.
Enhancing AI literacy among educators and building trust were highlighted as key solutions, along with aligning AI tools with pedagogical goals and adhering to COPPA and FERPA regulations to protect student data.
Feedback from our portfolio companies has been extremely positive. These sessions not only spark critical discussions at the intersection of AI and education but also provide actionable insights that our founders can apply in their ventures. We are excited to continue bridging the gap between AI research and educational innovation, empowering our portfolio companies to lead responsibly in AI adoption.
We look forward to our next session in late September – stay tuned for details!
Business Update & Annual Meeting
On June 12, we held our Annual Investor Meeting and Founder Gathering, centered on the theme “Beyond the Walls of Traditional Education and Workforce,” and the challenges of system change. The morning featured discussions on market trends, portfolio updates, and an interactive case study for investors. David Blake, CEO of Degreed, then joined Matt for a fireside chat where he shared insights on tackling the skills gap and AI’s impact on work and training. The day concluded with peer-to-peer sessions for portfolio company leaders, focusing on market insights, shared challenges, and alternative financing methods. Thank you to everyone who joined us for a great event!
Shortly after the annual meeting we released our 2023 Impact Report, which showcases the impact our portfolio is having on 58,793,157 learners globally – 13,791, 292 of whom are low-income. Reflecting on the impact of our portfolio reminds us that companies can grow sustainably while delivering meaningful social impact and driving tangible business outcomes.
EdTech's Potential in Sub-Saharan Africa (SSA)
Is there an opportunity for EdTech to alleviate the unemployment crisis in Sub-Saharan Africa?
Bridget Duru, senior associate at Rethink Education, teamed up with Peter Wamburu, vice president at VestedWorld, to share their reflections and insights from researching opportunities on the continent. Key takeaways include:
- While there are multiple VC-backed upskilling platforms and marketplaces emerging in SSA that can play a key role in ensuring that Africans are up to date on in-demand digital skills, structural inefficiencies may be too difficult for VC dollars to solve alone. Marketplaces for freelance work and the emergence of large outsourcing companies can help to make a larger impact on unemployment in the continent.
- For Africa to become a major player in global outsourcing we need to support the development of the underlying infrastructure with participation from all players, including governments, the private sector, and the nonprofit sector.
- Youth in Africa will be instrumental to the future of the global economy.
New Investment
In May we announced our investment in Aanaab, a Saudi Arabia-based EdTech company on a mission to empower teachers.
Like many areas of the world, the Middle East and North Africa (MENA) region faces the ongoing challenge of training and continually upskilling teachers and school leaders. Most of the education solutions in the region focus on students, curriculum, or resources and often overlook teachers. Aanaab saw the unique opportunity to build a comprehensive teacher professional development solution to address this challenge in the absence of other competitors—a total addressable market of $4 billion.
Founded in 2019, the digital training platform offers K-12 teachers and educators a range of courses, licensing, and qualifications, predominantly in Arabic, to advance their professional development. We are proud to support Mounira Jamjoom, Aanaab’s CEO and co-founder who is also a former educator, and the entire team.
Portfolio Highlights
Several of our portfolio companies were named to TIME and Statista’s list of the top EdTech companies of 2024 including: Civitas, Degreed, Acadeum, 3DBear, Guild, Noodle, Orijin, Aanaab, and UpSwing. GetSetUp also received a rising star recognition.
Backpack Healthcare secured $14 million in Series A funding to revolutionize pediatric mental health care.
As an Official Education, Skilling, & Career Mobility Provider of Team USA and the LA28 Olympic & Paralympic Games, Guild is helping athletes transition from the podium to their professional careers with top-tier education and career resources. Learn more.
13 of our portfolio companies were named to the Holon IQ 2024 North America EdTech 200 list including: Campus, Acadeum, Wonderschool, Vivvi, EnGen, Sora, Ignite Reading, MagicSchool, Pathstream, Mentor Collective, Guild, Amira Learning, and Stellic.
In June, AI-powered reading assistant Amira Learning announced its merge with Istation, a leading provider of adaptive and personalized digital learning solutions. Together they aim to create a leading organization in AI-powered literacy tools, targeting 15% market share and serving over 1,800 school districts globally by year-end.
Innovative childcare platform Wonderschool acquired the ChildcareMatters SubPool platform to improve its solution for matching child care centers with qualified substitutes and easing administrative burden.
Team Updates
The past few months have been filled with events, conferences, and exciting new developments for the team!
- We recently announced that Amy Nelson has transitioned into a full-time role with Rethink Education, joining Matt and Dre as our third managing partner. Since joining Rethink Capital Partners as chief strategy officer three years ago, Amy has been instrumental in building teams and delivering new solutions across the platform. She’s been actively involved in our portfolio and operations, serving as an observer on the IC and as board director for Vivvi, our largest investment to date. Amy brings her wealth of experience in expanding access to education, primarily through entrepreneurship and venture capital. She holds a deep personal and professional commitment to our mission, and we look forward to having her join us. Read Amy’s introduction letter to learn more.
- Rethink Education was featured in the Financial Times for our engagement in child-lens investing, a new approach where investors intentionally consider child-related factors to advance positive child outcomes while also minimizing harm. It was a privilege to work with UNICEF and Tideline on the development of this framework and toolkit, which have been a catalyst in driving these efforts.
- Matt took the stage at ASU + GSV in April to discuss accessibility in innovation and the future of childhood education, see the panel recording.
- Dre attended SuperReturn Emerging Markets Tech & VC Summit in late June, where he presented on the promise, lessons learned, and next steps for the EdTech sector.
- In June, Monique joined likeminded professionals on a panel at London EdTech Week where they discussed raising capital in the EdTech sector (particularly for European-founded companies), the current decline in funding (especially for larger rounds), and forecasts for the market for H2 2024 and 2025.
- Check out Bridget’s leadership spotlight by the Emerging Venture Capitalists Association (EVCA), where she serves as the New York Chapter Co-Lead.
- Our parent company, Rethink Capital Partners, was named to New Private Markets 2024 list* of the world’s 50 largest impact capital managers. We’re proud to be part of this platform and team!
- Matt joined the On Work & Revolution Podcast to discuss AI, biases, and the importance of empathy in navigating EdTech’s future.
- In collaboration with The Global Impact Investing Network (GIIN), the Financial Times published a list of 100+ impact investors**, including our parent company Rethink Capital Partners. Check it out to see where capital is making a difference and inspiring future investments.
A Look Ahead
Our team is looking forward to the various exciting events and opportunities on the horizon! Make sure to connect with us at the following events:
- Reach out to connect with Matt and Amy next week at Holon IQ’s 23rd Annual ‘Back to School’ Summit, Sept. 10-11 in New York.
- Join us for breakfast on Friday, Sept. 20 at the West Side YMCA, New York! Rethink Education is teaming up with World YMCA and Second Muse to host a roundtable discussion centered on the topic of “Learning to Earning,” which is the theme of YMCA’s emerging impact investing practice. Register and learn more.
- Attending EdTech Week in NYC? Hear Amy speak on the “Harnessing Impact Investment: Strategies for Sustainable Educational Innovation” panel, Oct. 29 at 11am.
- Amy will be in Amsterdam Oct. 23-24 for the GIIN Impact Forum 2024; get in touch if you’d like to catch up.
- Our team is headed to SOCAP24 and thanks to your support, our panel on AI in Education was voted to take the stage! If you’re attending, make sure to catch Matt and Monique on the following panels or reach out directly to connect.
- Oct. 28: “Career Education: Investing in Early-Stage Companies and Diverse Leaders” (Matt Greenfield)
- Oct. 28: “Learning & Capital: The Track’s Opening Panel” (Matt Greenfield)
- Oct. 30: “Navigating the AI Revolution: Opportunities and Risks in Education (Monique Malcolm-Hay)
- Attending the Stanford Accelerate Edtech Impact Summit on Nov. 18? Join us for a dinner with fellow innovators! Contact Monique for details.
*Announced on July 24, 2024, the Impact 50: 2024 is a list of the largest managers of impact capital in private markets based on five-year fundraising totals. Rated by New Private Markets, this version of the Impact 50 list is based on the amount of dedicated impact capital raised by firms between 1 January 2019 and 31 December 2023. To compile this list, the New Private Markets research team is guided by GIIN’s definition of impact investing, which requires strategies to include intentionality as well as impact measurement and reporting. Additionally, they must seek financial returns, and they are not bound to any particular asset class. This recognition is or may be considered to be an endorsement by New Private Markets of Rethink Capital Partners, LLC (the “Company). New Private Markets is not a client of the Company or an investor in any fund or entity advised by the Company. New Private Markets is NOT compensated by the Company. The Impact 50 is not a performance ranking, nor does it constitute investment recommendations.
** Published exclusively by the Financial Times (“FT”) on July 31, 2024, the Global Impact Investing Network (“GIIN”) produced a list of impact investing organizations that includes specific data from named firms, some with billions of dollars in impact assets. The GIIN’s 2024 investor research is based on data from 305 organizations that use an impact investing strategy. This data was collected using a questionnaire administered from January to March 31, 2024, whose purpose was to gather information about activities in impact investing, practices for measuring and managing impact, and industry perceptions. To gather a diverse sample, a survey invitation was distributed to individuals at 18,491 identified impact investor organizations, including subsidiaries and regional divisions. To meet the eligibility criteria, respondents must have either committed at least $10m in impact assets or completed at least five impact investing transactions since their inception. The impact AUM listed includes assets invested both directly and indirectly, leading to potential double counting. This recognition is or may be considered to be an endorsement by FT and/or GIIN of Rethink Capital Partners, LLC (the “Company). The FT nor GIIIN is not a client of the Company or an investor in any fund or entity advised by the Company. FT nor GIIN is NOT compensated by the Company. The impact investor list is not a performance ranking, nor does it constitute investment recommendations.
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