EdTech & the Creator Economy: Cohort-Based Classes

The Reshaping of Education and the Rise of the Creator Economy

The recent pandemic has spurred a wave of innovation, with entrepreneurs actively seeking to modernize established educational practices. This includes revisiting traditional methods like flashcards, tutoring services, and supplementary after-school programs.

These ventures aren't merely speculative; they represent high-growth, unicorn-valued businesses aiming to leverage the increased consumer acceptance of digital learning solutions.

Edtech and the Creator Economy: Parallel Growth

The expansion witnessed within the edtech sector is comparable to that of the creator economy. The latter focuses on empowering individuals to monetize their skills and passions while preserving their unique brand identity.

Growth in the creator economy has been fueled by heightened demand for digital content, driven by increased time spent at home and a surge in new content creators seeking to fulfill this demand.

Distinct Challenges, Converging Solutions

While edtech and the creator economy address different challenges – such as developing VR for immersive STEM learning versus consolidating creator monetization – they are increasingly intersecting.

This convergence is particularly evident in the emergence of cohort-based learning platforms.

The Power of Cohort-Based Learning

These platforms enable experts to launch courses for their existing communities, even without prior teaching experience.

Students progress through the curriculum as a group – a cohort – with the expert readily available for guidance and feedback.

This model represents a significant opportunity for individuals to share their expertise directly, bypassing traditional institutional structures and fully investing in their passions.

A Complex Intersection: Creators as Educators

The blending of these two sectors isn't without its complexities, according to entrepreneurs and investors.

Concerns exist regarding the potential influx of unqualified instructors lacking a solid foundation in educational principles, or pedagogy.

Conversely, some argue that true educational democratization necessitates challenging the conventional criteria for who is authorized to teach.

Ultimately, the rise of cohort-based platforms and the intersection of edtech and the creator economy signal a fundamental shift in how knowledge is disseminated and acquired.

The Democratization of Teaching

The foundational premise of many massive open online courses (MOOCs) and established educational institutions centers on learning from credentialed instructors. However, a growing number of cohort-based platforms are challenging this notion, advocating that anyone possesses the potential to teach. This shift aligns directly with the principles of the burgeoning creator economy, empowering individuals to capitalize on their unique skills.

Instead of seeking out university professors for supplemental instruction, the focus is shifting towards engaging professionals from various industries to share their expertise through dedicated courses. This isn’t merely a conceptual idea; it’s a rapidly expanding market. Mighty Networks, for example, secured $50 million in Series B funding to facilitate course creation for its users. Similarly, Nas Academy recently raised $11 million to support creators in developing MasterClass-style educational series.

These companies operate at the convergence of edtech and the evolving perspectives on educational methodologies, alongside the creator economy’s core tenet of individual entrepreneurship.

Mark Tan’s extensive participation in fellowships and years of professional coaching within the technology sector have shaped his perspective. Having relocated from the Philippines to the United States, Tan consistently valued the networking opportunities inherent in virtual learning environments.

These connections ultimately led to positions at Amazon and Twitch, culminating in his recent role as a director of product at Wyze.

The realization that expertise, rather than formal teaching qualifications, is paramount ultimately empowered Tan to launch his own course on Maven. The course, scheduled to begin shortly, will focus on community-driven product development strategies.

“I’ve participated in fellowships alongside highly recognized individuals, and often establishing a connection proves difficult due to their greater experience,” he noted. “There’s a tendency to overemphasize the role of the expert as the sole source of knowledge.”

“With time, I discovered that significant learning opportunities arise from interacting with peers, leading me to prioritize those connections over passively attending lectures.”

Tan’s four-week course is currently offered at $599, reduced from its original price of $799, and requires a time commitment of five to ten hours weekly. The curriculum incorporates live workshops, open question-and-answer sessions, guest speakers, and opportunities for peer networking.

Tan embodies the ideal profile sought by founders of cohort-based platforms when recruiting creators. He possesses experience at prominent companies, has firsthand knowledge of the subject matter he teaches, and demonstrates a genuine passion for education, having directly benefited from peer-to-peer learning.

“The most effective teachers are often those without prior teaching experience,” asserts Ana Fabrega, who transitioned from primary school teaching to Synthesis, an online enrichment school inspired by Elon Musk’s Ad Astra educational model. “A common instinct among teachers is to exert control, meticulously plan, and prevent student struggles. However, a more successful approach involves the opposite.”

Synthesis prioritizes cultivating skilled facilitators who can gauge student engagement and foster a sense of intimacy, rather than educators rigidly adhering to a predetermined curriculum to achieve specific metrics, Fabrega explained.

“Our primary goal is to empower students to take ownership of their learning and actively participate, rather than relying on teachers to carry the burden,” she stated.

Both Tan and Fabrega highlight the potential for innovation stemming from individuals outside traditional educational structures, particularly within a field as deeply rooted in emotion and culture as education. However, concerns are emerging regarding the potential impact on learning outcomes as the opportunity to teach becomes increasingly accessible to a wider range of creators.

Assessing Passion in Education

A consistent challenge within the edtech sector involves balancing rapidly evolving technology with established pedagogical principles – the art and science of teaching. Even Duolingo, despite achieving a significant IPO valuation, faces scrutiny regarding the attainment of genuine fluency in language learning, yet remains a highly successful consumer edtech venture.

Concerns have been raised that certain cohort-based course (CBC) platforms may lack sufficient rigor in their instructor selection processes.

Tade Oyerinde, founder and CEO of Campuswire, articulates this concern, stating that possessing entrepreneurial experience doesn’t automatically qualify someone to effectively teach entrepreneurship. He emphasizes that teaching is a distinct skillset, cultivated by professionals who have dedicated their careers to understanding how people learn and emulating the techniques of effective educators.

Oyerinde’s company has recently shifted its focus towards live, cohort-based learning delivered through a tuition-revenue sharing arrangement. Mirroring earlier online learning platforms like Coursera and Udemy, Campuswire’s courses are primarily led by qualified professors. While this approach presents challenges related to scalability and competition, Oyerinde asserts it demonstrates a commitment to providing learners with access to “verified expertise.”

Conversely, he characterizes some competitors as offering access to a “well-known personality or subject matter expert.”

“It’s possible some individuals are led to believe they’ll gain access to ‘insider secrets’ for achieving success as a social media influencer,” he explains. “However, they are frequently left disappointed, as many of these courses offer little more than information readily available through podcasts and YouTube videos with dedicated research.”

Oyerinde’s reservations do not preclude engagement with the creator economy. Last year, Campuswire featured Charles Hudson of Precursor leading a class on angel investing, priced at $2,500 per participant. Crucially, Oyerinde points out that this wasn’t Hudson’s initial experience with teaching; he had already been lecturing on entrepreneurship and diversity at the Stanford University Graduate School of Business for nearly two years.

“Should the future involve ‘everyone becoming a teacher,’ a dedicated organization will likely be needed to train these creator-teachers, guiding faculty on how to teach systematically, with discipline, and inclusively,” Oyerinde suggests.

“Genuine passion for teaching would already be evident in the actions of individuals like Charles, who are already actively engaged in education,” Oyerinde contends.

Ish Baid, founder of the live class platform Virtually, expresses concern that CBC platforms “are evolving into a means for influencers to monetize their existing audience.”

“Individuals with substantial followings can easily launch a CBC, charge a fee of $1,000, and deliver limited value,” Baid shared with TechCrunch. “Those constructing truly valuable CBCs prioritize their role as educators over their status as creators. For them, CBCs represent their primary revenue stream, not merely an additional one.”

Virtually aims to mitigate the risks associated with transforming creators into educators by recruiting instructors who already have established CBCs and providing them with a comprehensive suite of no-code, automated tools.

Baid’s viewpoint highlights a fundamental distinction within the CBC landscape: the difference between those who are equipped to teach and those who may not be. The creator economy often operates under the assumption that creators are a homogenous group eager to pursue – and profit from – a wide range of ventures, from subscription podcasts to investment funds to teaching others how to replicate their success. However, developing content for a CBC can require 50 to 70 hours of work, excluding actual instruction and student feedback.

It’s unrealistic to expect one person to effectively manage all these diverse projects, and CBCs risk becoming just another item on a creator’s to-do list rather than a focused endeavor.

QA, Q&A

Edtech companies focused on empowering creators are facing the challenge of continually onboarding instructors while simultaneously maintaining, and ideally improving, the quality of the educational content offered. Platforms achieving success within the cohort-based course (CBC) landscape will skillfully navigate this complex balance.

Jomayra Herrera, a partner at Reach Capital, expresses strong support for the underlying principles of CBCs.

“The concept of broadening access to the skills and knowledge possessed by individuals globally is compelling,” she stated. “However, the crucial question is how to effectively implement this, and I don’t necessarily believe that individuals who are experts and strong entrepreneurs are automatically effective educators.”

Herrera advises entrepreneurs to prioritize pedagogy, even if they prioritize the class structure itself.

“Consumer expectations are evolving, but the supporting tools and teaching methods haven’t kept pace,” she explained. “A reevaluation is necessary to create an experience that closely mirrors in-person learning.”

Mercedes Bent, a partner at Lightspeed Ventures, suggests that the appeal of cohort-based classes isn’t primarily about market size, but rather a matter of learning preference. She contends that a significant portion of the population has already experienced this format through traditional education or professional development programs.

For startups concentrating on post-secondary education and professional learning, Bent identifies the course start date as a key limitation. “The probability of a course beginning on any given day that aligns with a learner’s schedule is relatively low,” she noted. “The critical question is what percentage of those with strong enrollment intentions would prefer to wait for a suitable date rather than opt for an asynchronous course. A substantial number likely view asynchronous learning as a complementary resource, not a replacement.”

Should Bent’s perspective prove accurate and CBC platforms primarily serve as supplementary educational tools, the need to demonstrate learning outcomes in the same manner as accredited online universities may be lessened. However, robust quality control measures will still be essential.

Maven, for instance, offers a cohort-based course designed for aspiring instructors, covering the fundamentals of course creation, launch, and marketing. Wes Kao, the co-founder who leads the course, guides creators in assessing course-market fit, fostering student engagement, identifying effective digital classroom frameworks, and developing a unique instructional perspective.

Currently, completion of Kao’s course is a prerequisite for creators on Maven, though this requirement may be subject to change. The company aims to strike a balance between established guidelines and a spirit of innovation.

“We provide these guidelines, but encourage creators to challenge them,” Kao said. “Our goal isn’t to dictate specific course structures or phrasing, or to limit the types of students creators can serve.”

Maven is committed to removing courses that are fraudulent or promote harmful content, but Kao acknowledges the challenges inherent in this process. “Determining the line between acceptable and unacceptable content is a complex issue for all platforms,” she said.

“I don’t anticipate Maven actively policing low-quality courses,” she added. “Such courses are likely to receive negative feedback and reviews, ultimately discouraging enrollment and limiting their success.”

Mighty Networks, a platform supporting the creator economy and offering CBCs, similarly relies on its community to identify and discourage ineffective instructors through market forces. CEO and co-founder Gina Bianchini leads an optional master class focused on community design, delving into the intricacies of course development.

Jane Stecyk, Mighty Networks’ SVP of marketing, explained that the course provides best practices for both prospective students and creators seeking to build a course-based business. Completion of the course is not mandatory for launching a course on the platform.

Mighty Networks currently hosts over 5,000 courses, with more than 400 new courses added monthly. The platform has attracted a total of 11,000 customers, according to Stecyk.

The company believes that creators can become effective teachers without necessarily being established experts—they simply need to cultivate a strong community around a shared topic.

“The instructor isn’t necessarily the sole expert; they are simply a step ahead, guiding the community through a learning journey,” Stecyk said. “The true value and inspiration are found within the community itself. Therefore, it’s less about requiring extensive pre-planned curricula and professionally produced videos, and more about facilitating connections between individuals who can learn from one another.” This is why Mighty Networks has invested in developing an internal chat service for cohorts, rather than relying on external platforms like Slack or Discord.

The Paradox of Edtech's Creator Economy

The current surge in the edtech creator economy presents a certain irony. While these platforms facilitate knowledge sharing by individual creators, the core value of the learning experience often resides within the cohorts themselves.

Truly student-directed learning remains a relatively new concept, especially when contrasted with conventional educational models. Historically, the instructor has served as the primary conduit of information. Shifting this dynamic and empowering students may validate concerns regarding instructor qualifications, but it also introduces unique difficulties and demands.

A key question arises: will students be willing to invest financially to gain value from their peers? (The likelihood is high).

Despite potential growing pains, the trajectory of Maven suggests a maturing market. The company was co-founded by Gagan Biyani, also a co-founder of Udemy, a more established edtech firm known for its massive open online courses delivered by experienced educators.

Now, Biyani is pioneering a venture with Kao that fundamentally challenges his previous work – a commitment to the strength of collaborative learning and a deliberate effort to redefine our understanding of the role of teachers.

The Genesis of Maven

Biyani’s inspiration for Maven emerged seven years after his departure from Udemy, during his participation in an online course focused on book writing.

He described a deeply personal experience: “I found myself in a vulnerable state, sharing with a group of strangers via Zoom, and I was genuinely moved to tears.”

“The setting was Zoom in 2016, and I considered it somewhat unconventional to be openly expressing my emotions on the platform. However, it was in that moment that I recognized the potential inherent in this approach.”

This realization highlighted the power of shared vulnerability and connection within an online learning environment.