The Awkward Economics of K-12 Edtech for Startups

Enterprise sales, without enterprise budgets One of the many things that always bothered me about selling to K-12 schools—something that I did a ton of while I was running Coding Rooms—is that it’s very similar to enterprise technology sales in every way, other than how much money you should expect to make. If you consider the fact that most successful enterprise technology companies are closing deals that are $100k/year on the lowest end of the spectrum1, their salespeople can easily justify spending the time to go through the tedious and often-sluggish motions of an enterprise sale. An outsized portion of enterprise software revenue also tends to come from a tight concentration of customers, AKA “whales,” who spend many millions/year for solutions to large-scale challenges. ...

December 26, 2023 · 7 min · Sasha Varlamov