Edtech Insiders Why Flashy Valuations Fail in EdTech: Juan Zavala of NMVP on Sustainable Growth
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Jun 9, 2025 Juan Zavala, a Partner at New Markets Venture Partners, specializes in education technology investments. He discusses why sustainable, capital-efficient growth is crucial in EdTech, dismissing the allure of flashy valuations. Zavala highlights the significant market gap in the U.S. education system and the need for balancing profit with purpose. He also explains the importance of aligning incentives among stakeholders and how innovative models like Nexford University are reshaping education for better outcomes.
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Raise Right Money, Achieve Cashflow
- Raise the right amount of money from the right sources and aim for a cashflow positive business.
- Generating cashflow proves you have a real business beyond just spending money to make less money.
Slow and Steady Wins in EdTech
- Sustainable growth and efficacy are key; there's no get-rich scheme in education.
- Capital efficiency and slow scaling create long-term impact and value for all stakeholders.
Choose Capital Sources Wisely
- Consider all sources of capital and their incentives; VC might not fit every edtech early stage.
- Aim to raise capital aligning with your growth speed, avoiding extreme dilution and pressure from high valuations.