Education Reform

Tom Ultican: EdTech Is Big Business: Part 2

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In the second part of his two-part essay about the education technology industry, Tom Ultican reviews the highly profitable side of so-called “personalized learning,” where investors profit, not students.

He recognizes that not all EdTech is bad, but goes on to explain how many popular EdTech programs are based on bad pedagogy or are designed to make money.

The pandemic brought a bonanza for online content providers and classroom organizing software. Programs like Google Classroom and Class Dojo which previously seemed superfluous performed a needed service during the crisis. Unfortunately, some of the edtech companies whose businesses spiked were taking advantage of the situation to sell profitable but harmful products based on bad education theory…

As an example:

The Khan Academy is another content provider that saw their traffic soar in 2020. Originally, the academy generated an image of this selfless Silicon Valley guy, Sal Khan, making math education videos and distributing them for free. In 2007, he formed his non-profit but it was not until 2010 that Bill Gates (EIN 56-2618866) and other billionaires began sending him money.

It turns out that Sal Khan is not so selfless. His non-profit is making him wealthy. Khan Academy tax records (EIN 26-1544963) reveal that between 2010 and 2019 his salary totaled $6,009,694 and since 2015 his yearly salary has been more than $800,000. Between 2012-2017, the Gate Foundation gifted the Khan Academy $12,951,598 and the Overdeck Foundation (EIN 26-4377643) has kicked in $2,154,300.

In 2019, Khan Academy took in $92,559,725 of which only $27,629,684 was from contributions. The Academy has turned into a big-revenue generating non-profit.

In October 2020, Khan Academy announced a new joint effort with NWEA called Khan Academy Districts. There sales pitch says “Khan Academy has partnered with NWEA, creators of MAP® Growth™, to empower teachers to differentiate their instruction based on assessment results and meet the needs of all students.”

NWEA is the company that generated a lot of buzz with their covid-learning loss “research.” NWEA sells standardized math and English testing. They take in noisy data (All standardized testing data is noisy and fraught with error) 3-times a school year, do some fancy arithmetic and report out student growth determinations.

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