19
May

Why the Facebook IPO Matters to Ed Tech and Increased Ed

Written by Blog Editor. Posted in Academic News

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Technologies and Understanding

Why really should larger ed and ed tech individuals care about the valuation of Facebook? Does it genuinely matter if a bunch of young technologists and investment bankers get fabulously wealthy, and if a group of wealthy, visionary or gullible traders make or drop tons of income?

I believe that the Facebook valuation matters to anyone interested in the educational engineering and publishing sector. I&#39m not specifically certain why I think this, and I&#39m hoping that possibly together we can far better understand the meaning of the Facebook IPO.

Some inquiries about Facebook that I&#39ve been asking myself include:

  • If in two many years Facebook ends up getting really worth significantly less than what individuals are paying for shares these days will we see a chilling impact on investments in the educational technological innovation sector?&nbsp &nbsp
  • Would a a decline in Facebook&#39s valuation contact into question the organization models of other world wide web and mobile primarily based platforms that rely on marketing?
  • Will investors be unwilling to make lengthy phrase bets in education and technology associated organizations given the Facebook IPO and connected bargains (such as Facebook&#39s $ one billion obtain of Instagram?)
  • What will it indicate for smaller sized education and ed tech startups to attract traders and capital?

I see an enormous set possibilities at the intersection between education and technological innovation, possibilities that have practically absolutely nothing to do with the Facebook story.&nbsp The willingness of the investment community to worth Facebook at $ a hundred billion tends to make me critically query how these valuations are derived.&nbsp &nbsp

The lack of vital, in-depth, and questioning analysis of Facebook&#39s company fundamentals is a worrying sign about the capacity of the business and technological innovation press to adequately report on, and analyze, the likely of ed tech startups and much more established for-revenue education organizations.&nbsp

Some excellent factors may come out of the Facebook IPO. I hope that at least some of those young newly minted Facebook millionaires decided to invest in or begin their personal ed tech startups. Better nevertheless, I could think about a situation in which Facebook gets severe about education, and decides to make substantial investments in social mastering.&nbsp

But despite these hopes, I can&#39t shake the feeling that the Facebook valuation is much less about enterprise fundamentals and far more about hype, hope and magical pondering.

Can you help make clear why the Facebook IPO matters, or does not matter, to ed tech and larger ed?

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