Putting Education Reform To The Test

Analyst Sees Education Technology Bubble Developing

Wall Street analysts see signs that technology investment in the education industry is becoming overheated. One analysis finds that iPads cost more than five times as much as traditional textbooks. But be sure to read the comments here — the writers make a compelling case the problem often isn’t the technology, but the implementation and support.

All that enthusiasm among school administrators and school board members has reverberated on Wall Street, which is pouring money into the sector. In 2005, investors put about $13 million of venture and growth capital in the K-12 market. In 2011, venture capitalists poured $389 million into companies focused on K-12 education, according to industry analysts GSV Advisors, a Chicago-based education firm that tracks the K-12 market.

“Is it a bubble?” asks industry analyst Frank Catalano. “No, but there are signs it’s getting to be a bubble.”

Read more at: www.takepart.com

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