In my experience the business of edtech (education) swings wildly between the apogee of happiness, fulfilment and inspiration, and perigee of confusion, rancour and despair.
For me 2023 was no different, with some great ideas and people and some tough choices and disappointments.
At the top of the scale it was meeting and getting to know great people like Rajeshwari Iyler of sAInaptic and Lucas Moffit of teachology.ai, John Jang of iSpeak, Joey Moshinski of Tutero and many others. Some of the lows were watching BESA’s decline in relevance, being cancelled by someone I counted as a friend, and my ongoing battle with a serious life limiting health issue.
For edtech, the background theme of 2023 was generative AI but there was too much hype and too little focus on what might work practically and financially within an educational context. 2024 will I’m sure bring some more reality to the jumbled debate about AI in education and beyond. Over the last ten years of “AI” startups, there have been mysterious black box solutions and overhyped claims. But what about the role of media in edtech and AI? I think that traditional media channels (newspapers, TV and radio) cover education and edtech badly, the worst example being The Times Education Commission’s report. Weak ‘evidence’, lack of disclosure of conflicts of interest amongst the commissioners, and repetition about how education and learning would be transformed if we did away with exams and a ‘narrow curriculum’. They expound a focus on creativity and 21st century skills like communication and collaboration (with the mandatory sprinkle of DEI fairy dust), replacing our ossified systems with that of PISA superstar Estonia, whose entire K12 student population is less than 2% of that in England and more akin to the size and demographics of Norfolk.
Schools which deliver outstanding education like Michaela Community School in Wembley are ignored by the edu media as inconvenient truths that will go away when Labour right the ship of state in 2024. The only outlets I rate are SchoolsWeek and the TES, who both have a depth of knowledge of the sector and strong editorial teams (even though I often disagree with them). I also rate the assignment report, Holon IQ, Education Investor and a few other sources, but spend more time reading filings at Companies House than on the regurgitated press releases masquerading as reportage or ‘evidence’ on social media. Upcoming changes at Companies House mean that small entities will no longer be allowed to to file abridged accounts and will have to include both a profit and loss account and directors’ report.
An example of good reporting is Jessica Hill’s interview with Priya Lackhani in SchoolsWeek. Hill and the editorial team profiled Lackhani’s achievements, including her claims that Century is “the big AI company not just in the UK, but Europe…and frankly the US”, balancing this (and other claims) with questions such as, if they are the largest AI edtech internationally why have they filed minimalist statutory accounts using the exemptions granted to small companies? Hill also queried Century’s previous claims that its AI could accurately predict autism (also included in the Times Education Commission’s Interim Report) to which Lackhani replied, “I have learned from the experts who know what they’re talking about that this [technology] is not an appropriate way to diagnose autism”. I found this probably the best investigative interview of an edtech founder in 2023. It showcased her impressive background and mission-driven goals, but balanced that with context that showed how even the best leaders can be caught up in hubris that does not seem to match objective reality.
Another disappointment in 2023 was the continued decline in the relevance of BESA. It is the most important education trade association and founded the two most important UK edu events – BETT and the Education World Forum. Yet to me it’s mired in what I think will be a wasteful judicial review of Oak National Academy. Its 2023 accounts show over £64k spent on legal advice (presumably about the Oak case) which represents more than 10% of their membership income. Since 2018 BESA have had to refund £50,057 in event commission income from the square metreage sold at ‘an education event’. My initial estimate was £977k; BESA’s Director General informed me (via Linkedin) that, ‘A correct reading of BESA’s publicly available accounts shows that BESA has to date reimbursed £50,057 of a £236,153 balance resulting from a historical overstatement of payments for an education event (not BETT)‘. This overstatement is a mistake on my part, which I am happy to correct. It would be more transparent if BESA listed the event, the liability and estimated repayment schedule in their accounts.
Refund Provision
Event commission income is determined in reference to the historic agreement with the event organiser. The above provision is in relation to the previous years where the event organiser informed BESA the amount of its share of the income from the show. This commission income is based on the exhibition square metreage. The event organiser informed BESA in 2018 that the amount they had told BESA to invoice them for over the past six years had been overstated. An agreement has been reached with the event organiser that BESA will make good the overpayment by reducing the future income received from the event organiser in relation to the event by 50%. It is estimated the amount will be cleared within 5-6 years’ ( as reported in 2022).
So while BESA’s income has been almost static, it seems, with 10.8 FT staff, overstaffed in comparison to a similar trade group such as The Association of British HealthTech Industries, with 400 members, a turnover of £4m p.a. and seven full-time staff. BESA have pointed out that in my original article I noted they had 31 staff, a number taken from their 2023 accounts, but this includes Directors (again thank you, I am happy to correct this). However, in 2018/19/20/21 the same accounts say their staff numbers include directors, when they don’t; something which, if they are to be equally transparent, should be notified to Companies House. Can BESA recover the innovation behind BETT and WEF and focus on members’ issues like the impact on school budgets of employer teacher pension contributions rising to 28.6% from next April?
My guess is that 2024 won’t see much in the way of investment in UK K12 AI edtech. I have experienced firsthand just how hard it is to raise money for UK-based AI edtech startups. CenturyTech may have raised £22m since 2013, but unless they scale exponentially in a way they haven’t been able to in the last decade, then they will also struggle to get more cash at a realistic valuation. They have recently pushed back their annual accounts for 90 days until 31/03/2024 – is a potential sale in play?
One trend in 2023 has been the growth of online schools like Kings Interhigh and Sophia High School, ‘The UK’s Premium British Online School’. A logical extension are hybrid private schools like the new offering from Duke’s Education, ‘the first UK-wide hybrid school offering home and class learning‘. With Labour’s promise to impose VAT on most private school fees and the expectation that up to 25% of the sector will close, this is a smart move by one of the best for-profit private school operators. As I have written before, Labour’s goal of screwing another £1.8bn p.a. out of parents’ post-tax income is likely to be an own goal with expensive consequences to the Treasury.
My BETT press pass application is stuck in Hyve’s online registration system which wants me to pay £1000 for a General Access pass. Until my email address can be removed I can’t even apply for a press pass. Maybe it’s time, after 20+ years, to skip BETT, but otherwise I hope to catch up with friends at BETT, in London, Norfolk or even Australia in 2024.
Addendum
BESA’s Director General has asked that I disclose my involvement with anyone associated with Oak National Academy. By this she wishes me to restate the fact that over a decade ago I invested a small sum in edapt, an edtech start up founded by John Roberts, who in 2020 was one of the founders of Oak. John resigned any executive role at edapt in 2022 as any simple search of public records would show, as is my shareholding in edapt. If BESA believe my lack of disclosure of my investments in multiple edtech startups implies bias or a lack of transparency, they are incorrect. I have always disclosed these where relevant and I have always stated the opinions expressed in this blog are my own.
