The Intersection of Running a Micro VC and the Rise of Digital Learning

The Intersection of Running a Micro VC and the Rise of Digital Learning

Introduction:
Running a micro VC fund can be a challenging endeavor, with many pitfalls and lessons to be learned along the way. At the same time, the world is experiencing a significant shift towards digital learning, accelerated by the COVID-19 pandemic. In this article, we will explore the common points and connections between these two seemingly unrelated topics and uncover valuable insights and actionable advice.

1. The Challenges of Running a Micro VC:
   Running a micro VC fund is not for the faint of heart. Many VC funds fail to achieve significant returns, making it essential to do thorough homework and gather insights from experienced micro VCs before diving into the venture. Additionally, the financial strain can be immense, as most of the fund's capital needs to be allocated for investments rather than personal livelihood. It is crucial to be prepared for a modest salary and limited external income opportunities. Despite these challenges, micro VCs have the potential for substantial upside, akin to working a steady job at a tech giant for a decade.

2. The Rise of Digital Learning:
   The COVID-19 pandemic has propelled the world into the age of digital learning, with an unprecedented number of students and teachers transitioning to online platforms. This shift has been facilitated by the digital infrastructure that has been evolving over the past 25 years, connecting individuals globally and providing access to educational opportunities. Digital learning, which previously represented a small fraction of the education sector, is projected to grow exponentially, reaching 11% of the market by 2026 and becoming a trillion-dollar industry.

3. Opportunities and Innovations:
   Digital learning opens up numerous opportunities for innovation. One such opportunity lies in leveraging video games to make learning more engaging and immersive for students. By developing games that incorporate key educational materials subliminally, known as "Invisible Learning," educators can tap into the 12,000 hours that students spend playing video games on average throughout their K-12 education. Additionally, the shift towards personalized learning and competency-based advancement presents an opportunity to transform the traditional one-size-fits-all education model into bespoke learning experiences.

4. Disruption in Higher Education:
   The rise of digital learning has significant implications for higher education institutions. With the number of students expected to double by 2030, online platforms offered by universities like ASU and SNHU are poised to replace smaller, regional institutions. Regional brand equity will become less meaningful in the digital age, as accessibility and online presence become key factors in student enrollment. Furthermore, the value of a degree alone is diminishing, with alternative ways to demonstrate capability, such as certificates and badges, gaining recognition in the job market.

Actionable Advice:

1. For aspiring micro VCs: Do thorough research and seek advice from experienced micro VCs before starting your own fund. Understand the financial implications and be prepared for a modest salary. Bootstrap if possible, but be aware of the limitations on external income opportunities.

2. For educators and edtech entrepreneurs: Embrace the potential of video games as a tool for "Invisible Learning" and engage students in a more immersive educational experience. Explore personalized learning approaches and competency-based advancement to cater to diverse student needs.

3. For higher education institutions: Embrace the digital transformation and invest in accessible online platforms to expand your reach beyond regional boundaries. Adapt to the changing landscape by recognizing the value of alternative forms of demonstrating capability, such as certificates and badges.

Conclusion:
Running a micro VC fund and the rise of digital learning may seem unrelated, but they share common themes of disruption, innovation, and opportunity. By understanding the challenges and best practices of running a micro VC fund, and by embracing the transformative potential of digital learning, entrepreneurs and educators can navigate these changing landscapes and contribute to the future of education.