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The COVID-19 pandemic catalyzed a surge of education technology (edtech) investments globally, with Latin America witnessing a sixfold increase in 2021 alone. Despite significant talent shortages in countries like Argentina, Peru, and Mexico, this region is becoming a hotspot for business relocation due to the nearshoring trend. As companies seek closer operational bases, the demand for a technically skilled workforce in Latin America grows. Young adults, especially in Brazil, are increasingly turning to online education in the region to enhance their professional skills for better opportunities. While still trailing global markets, Latin America's edtech sector is positioned for significant growth, with projections indicating a revenue of over US$3 billion by 2023.
Brazil is the dominant player in the edtech startup scene in Latin America, with Mexico also having a significant presence. The focus on workforce and management systems suggests that there's a strong emphasis on upskilling and corporate learning in the region's edtech sector.
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In the latest episode of the Find The Way podcast, we delved deep into the world of edtech with Federico Hernández from Henry and Fabio Muniz from Awari. Both companies are at the forefront of addressing the educational challenges in Latin America, particularly in the realm of technology and coding.
Henry and Awari, though distinct in their approaches, share a common goal: to bridge the educational gap in Latin America. With only 14% of the population having access to university education and countries like Argentina witnessing a staggering 50% high school dropout rate, the need for alternative educational pathways is evident.
The podcast emphasized that the future is undeniably intertwined with technology. Whether it's coding, data science, UX/UI design, or product development, technology is the driving force shaping the future. In Latin America, there's a growing realization of this fact, but there's also a recognition that not all countries in the region have fully embraced the tech-driven growth seen in other parts of the world. This lag presents both challenges and opportunities.
Henry and Awari are both leveraging technology to bridge the educational gap in Latin America. Henry, for instance, has fostered relationships with numerous companies, with close ties to 50 to 100 of them, including prominent tech companies from Latin America, consulting firms, and software companies. On the other hand, Awari focuses on continuous learning, offering a range of cohort-based courses that allow students to keep updating their tech skills.
The episode shed light on the intricate dance between venture capital (VC) and EdTech. While VC funding can propel growth, the nature of education presents unique challenges. The traditional venture scale playbook, which seeks rapid growth and quick returns, often clashes with the genuine educational needs of the audience. Federico highlighted the challenge of delivering venture returns while addressing core educational problems. The implication is clear: while VC can be a powerful catalyst for growth, EdTech companies must tread carefully to ensure they don't compromise on their educational mission.
Henry's unique model stands out, offering tech bootcamps in coding, data, and AI with no upfront costs. Students only pay once they secure a job in the tech industry. This model not only ensures quality education but also aligns the company's success with that of its students.
Awari, on the other hand, focuses on continuous learning. With an annual membership, students gain access to a range of cohort-based courses, allowing them to continuously upgrade their skills.
As technology continues to shape the future, the role of EdTech in Latin America becomes even more critical. Companies like Henry and Awari are not just teaching coding or data science; they are preparing the next generation for a tech-driven future. There are many challenges, from aligning with VC expectations to ensuring genuine educational outcomes, but the potential rewards for both students and the broader economy are immense.
