Featured Article

Can learning pods scale, or are they widening edtech’s digital divide?

The model largely excludes all but the wealthiest families

Comment

light bulb flickering on and off
Image Credits: Bryce Durbin / TechCrunch

Lucia, a six-year old, hides from Zoom calls and has rejected every edtech tool from Seesaw to Khan Academy. She will spend all of first grade in quarantine.

Her mother, Claire Díaz-Ortiz, says her daughter fits squarely into the “distance learning death zone.” The idea is that younger children are too young to do distance learning solo, even with tools meant to make it easier. Here’s one kindergartner’s remote fall class schedule:

“And unfortunately for my daughter, I’m a VC, not a Zoom mom,” Díaz-Ortiz said.

The impact of the distance learning death zone, as Díaz-Ortiz calls it, is one of the reasons why many wealthy families with young children are considering a new solution: learning pods.

Learning pods are small clusters of children within the same age range who are paired with a private instructor. Depending on a parent’s preferences, learning pods could be an in-home or virtual experience and be either a full-time school replacement or supplemental learning.

In recent weeks, the concept has taken off all across the country, from suburbs to cities. There’s a Facebook group for Boulder, Colorado school districts; organizers launched Pandemic Pod San Diego to “connect families looking for in-home, teacher-led learning groups.” Some households are offering teachers a retainer. Among working mom groupchats, pods are taking off as a sanity lifesaver, especially as childcare responsibilities fall disproportionately on women.

Startups are pivoting to keep up with the demand for private teachers. But because of high costs, only affluent families are able to form or join learning pods, which may limit the model’s ability to reach scale while extending the existing digital divide.

The remote learning boom came with a rush of free access and discounted prices to learning platforms. Big tech behemoths donated thousands of laptops, lowered prices and offered free trials to bridge the digital divide. By comparison, pods will cost participating families thousands of dollars on a monthly basis.

In Díaz-Ortiz’s case, she and her husband tried to fight with Lucia’s private school on providing 1:1 instruction since they are both working full time. Eventually, the family hired a teacher to come twice a week for a few hours.

“It’s a ridiculous story of privilege,” she acknowledged.

The clear argument in favor of pods is that parents — largely mothers — need childcare support and kids need in-person support. It’s why Owl Ventures, one of the largest edtech-focused funds to date, is interested in the trend. The firm told TechCrunch that the model is an opportunity to balance some of the uncertainty around the upcoming school year, especially taking the load off of working parents.

One of Owl Ventures’ portfolio companies is Swing Education, which pivoted from a substitute teacher hiring platform to creating learning pods. Company founder Mike Teng said he doesn’t think learning pods are a long-term solution, but he’s betting on them for the short term.

Before COVID-19, Swing Education helped schools hire substitute teachers. “Around March, with the shelter in place, we saw our revenue from our existing core business drop off a cliff,” Teng told TechCrunch.

The company knew there were teachers looking for work, and families started coming to them in search of instructors; now, Teng says learning pods have the potential to be much bigger than substitute teaching.

The business potential of a private teaching business contrasts with Teng’s personal mantra on education: About 85%-90% of students in the United States are enrolled in public education, and he wants to support to those masses. It’s precisely why he founded Swing Education five years ago to help substitute teachers get placed into schools.

One way startups are addressing inequity is by giving parents an option to sponsor other kids’ learning pod bills. The vast majority of the pods are filled with kids who are still enrolled in public schools, he says, with the pod teachers there to provide in-person curriculum and social mentorship after school.

“I think that pods are actually a thing that have cropped up all of a sudden because of inequity,” he said. “And they definitely don’t make inequity go away, but we are hoping to be able to close some gap given that pods are a reality right now.”

Swing Education is seeking partnerships with foundations to get bigger sponsorship checks and eventually support more kids.

Prisma, a hybrid school for rising 4th through 8th graders, is also chatting with organizations to grow its scholarship fund and support more kids. Kids are grouped by age and participate in both virtual co-learning, mixed with in-person experiences.

Each cohort includes 12 to 20 students who are somewhat near each other. Right now, anyone in the United States can participate but there are local hubs in Chicago, Los Angeles, San Francisco, Tampa and Salt Lake City. The socialization aspect will look like in-person hangouts, family events and service learning activities with a focus on projects and high school prep.

Prisma’s pricing model is designed so that 40% of families participating can be subsidized. Founder Victoria Ransom said she’s aware that their model will “never attract the majority of families” and that most will return to traditional school as soon as possible. Instead, Ransom is hoping to approach people who wanted to homeschool even before COVID-19, which she estimates is 10% of families with school-aged children.

“We believe that after COVID, this number will be larger because some percentage of families who have been forced to try distance learning are finding that it works well,” she said. Ransom said that they are in a position to self-fund and have no plans to raise money anytime soon.

Jomayra Hererra of Cowboy Ventures says temporary trends don’t become billion-dollar businesses. “I’m sure some percentage of parents will want to stay in a microschool environment, but the question is whether or not that portion is big enough to support a venture-backable business,” she said. Other edtech investors similarly expressed neutrality on the trend, albeit on background.

Amit Patel of Owl Ventures said he understands the perspective of limited market size, noting that microschools are in the early adopter phase of the market.

However Patel added that not all pods are created equal. Some are working in conjunction with public charter schools, private schools, homeschools, district partnerships and more. If any of those models succeed, accessibility could increase the value.

The true efficacy of learning pods as a steadfast future or makeshift fix will depend on how accessible they are to all, not just some.

Edtech is surging, and parents have some notes

More TechCrunch

Featured Article

The women in AI making a difference

As a part of a multi-part series, TechCrunch is highlighting women innovators — from academics to policymakers —in the field of AI.

12 mins ago
The women in AI making a difference

Ifeel is being offered as part of an employer’s or insurance provider’s healthcare coverage.

Mental health insurance platform ifeel  raises a $20 million Series B

Instead of opening the user’s actual browser or a WebView, Custom Tabs let users remain in their app while browsing.

Google Chrome becomes a ‘picture-in-picture’ app

Sanil Chawla remembers the meetings he had with countless artists in college. Those creatives were looking for one thing: sustainable economic infrastructure that could help them scale rather than drown…

Creator fintech Slingshot raises $2.2M

A startup called Firefly that’s tackling the thorny and growing issue of cloud asset management with an “infrastructure as code” solution has raised $23 million in funding. That comes on…

Firefly forges on after co-founder murdered by Hamas

Mistral, the French AI startup backed by Microsoft and valued at $6 billion, has released its first generative AI model for coding, dubbed Codestral. Codestral, like other code-generating models, is…

Mistral releases Codestral, its first generative AI model for code

Pinterest announced today that it is evolving its Creator Inclusion Fund to now be called the Pinterest Inclusion Fund. Pinterest teamed up with Shopify’s Build Black & Native program to…

Pinterest expands its Creator Fund to allow founders

Cadillac may seem a bit too traditional to hang its driving cap on EVs. And yet, that hasn’t stopped the GM brand from rolling out — or at least showing…

Cadillac’s new Optiq EV is designed to hook young hipsters

Alex Taub, a longtime founder with multiple exits under his belt, believes it’s time to disrupt the meme industry. “I have this big thesis that meme tech is going to…

This founder says meme tech is the next big thing

Lux, the startup behind popular pro photography app Halide and others, is venturing into video with its latest app launch. On Wednesday, the company announced Kino, a new video capture app…

Kino is a new iPhone app for videographers from the makers of Halide

DevOps startup Harness has shown itself to be an ambitious company, building a broad platform of services while also dabbling in M&A when it made sense to fill in functionality.…

Harness snags Split.io as it goes all in on feature flags and experiments

U.S. Rep. Elissa Slotkin will introduce a bill to Congress that would limit or ban the introduction of connected vehicles built by Chinese companies if found to pose a threat…

Chinese EVs – and their connected tech – are the next target of US lawmakers

Microsoft’s Copilot, a generative AI-powered tool that can generate text as well as answer specific questions, is now available as an in-app chatbot on Telegram, the instant messaging app.  Currently…

Microsoft’s Copilot is now on Telegram

HBO’s new documentary, “MoviePass, MovieCrash,” tells a story that many of us know about: how MoviePass, the subscription-based movie ticketing startup, was a catastrophic failure. After a series of mishaps…

MoviePass co-founders speak their truth in HBO’s new documentary 

The watch features a variety of different 3D games, unlocking more play time the more kids move.

Fitbit’s new kid smartwatch is a little Wiimote, a little Tamagotchi

In the video, a crowd is roaring at a packed summer music festival. As a beat starts playing over the speakers, the performer finally walks onstage: It’s the Joker. Clad…

Discord has become an unlikely center for the generative AI boom

After the Wirecard scandal, Germany’s financial regulator BaFin started to look more closely at young fintech startups that wanted to grow at a rapid pace — it’s better to be…

Germany’s financial regulator ends anti-money laundering cap on N26 signups after $10M fine

Among other things, this includes the ability to trace code from source to binary packages across both platforms, single sign-on support and unified project structures.

JFrog and GitHub team up to closely integrate their source code and binary platforms

The company’s public fund disbursement and e-commerce platform makes accepting school tuition and enabling educational enrichment more accessible. 

Tech startup Odyssey goes on journey to help states implement school choice programs

A new startup called Kinnect aims to help people privately save generational memories, traditions, recipes and more. The company’s app, launched this month, lets people create invite-only spaces where they…

Kinnect’s new app aims to help families record and store generational memories

Spotify has hiked its premium subscription in France by an eye-watering €0.13, in response to a new music-streaming tax.

Spotify hikes subscription price in France by 1.2% to match new music-streaming tax

The European Union has taken the wraps off the structure of the new AI Office, the ecosystem-building and oversight body that’s being established under the bloc’s AI Act. The risk-based…

With the EU AI Act incoming this summer, the bloc lays out its plan for AI governance

Solutions by Text, a company that gives people a way to pay their bills and apply for loans via text messaging, has secured $110 million in new growth funding. Edison…

Bootstrapped for over a decade, this Dallas company just secured $110M to help people pay bills by text

Owners of small- and medium-sized businesses check their bank balances daily to make financial decisions. But it’s entrepreneur Yoseph West’s assertion that there’s typically information and functions missing from bank…

Relay raises $32.2 million to help smaller businesses manage their cash flow

When other firms were investing and raising eye-popping sums, Clean Energy Ventures took a different approach. It appears to be paying off.

How Clean Energy Ventures avoided the pandemic bubble and raised a $305M fund

PwC, the management consulting giant, will become OpenAI’s biggest customer to date, covering 100,000 users.

OpenAI signs 100K PwC workers to ChatGPT’s enterprise tier as PwC becomes its first resale partner

Tech enthusiasts and entrepreneurs, the clock is ticking! With just 72 hours remaining until the early-bird ticket deadline for TechCrunch Disrupt 2024, now is the time to secure your spot…

72 hours left of the Disrupt early-bird sale

Avendus, the top investment bank for venture deals in India, confirmed on Wednesday it is looking to raise up to $350 million for its new private equity fund.  The new…

Avendus, India’s top venture adviser, confirms it’s looking to raise a $350M fund

China has closed a third state-backed investment fund to bolster its semiconductor industry and reduce reliance on other nations, both for using and manufacturing wafers — prioritizing what is called…

China’s $47B semiconductor fund puts chip sovereignty front and center

Apple’s annual list of what it considers the best and most innovative software available on its platform is turning its attention to the little guy.

Apple’s Design Awards nominees highlight indies and startups, largely ignore AI (except for Arc)