Experts at the “Doing Good and Doing Well with EdTech Workshop” say cross-sector and cross-border partnerships help bolster EdTech development in Hong Kong

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The untapped potential of EdTech in driving educational innovation in Hong Kong remains significant. Among the key challenges faced by many EdTech startups is their hybrid nature, which necessitates a balance between profit-making and a strong emphasis on social impact. This balance is crucial as businesses strive to establish a sustainable model. However, it has also made it challenging for EdTech ventures to raise funding.

The blended nature of EdTech startups tends to reduce their appeal to philanthropic organisations, such as foundations, which traditionally only support non-profits, and to investors who are after quick and substantial returns. This observation was made by experts at the ‘Doing Good and Doing Well with EdTech’ workshop held in early November. The workshop was a part of EdTech Month 2023, an event organised by Esperanza.
 
EdTech ventures entail the infusion of ‘patient capital’, which includes public, philanthropic, and impact funding, to sustain their innovations. Cross-sector partnerships can efficiently fund an EdTech business at its different stages of development, from grants, credit guarantees, loans to equity funding.

Meanwhile, cross-border partnerships enable various entities to leverage their diverse expertise and extensive local knowledge in their respective regions. Together they can effectively adapt existing EdTech solutions to address the unique pain points in different regions. This is also beneficial for newcomers, such as Hong Kong, as there is a wealth of knowledge that potential investors can glean from international and regional experiences.

Foundations and family offices

Despite the importance of education, Patrick Brothers, Co-Founder and Co-CEO of HolonIQ, remarked that both government and investors are underspending on education.