Mike Michalec: $1B+ Edtech Investments, Market Due Diligence Failures & Real-World Education Gaps - E543

Mike Michalec shares his journey from molecular research to outdoor adventure guiding and eventually into education consulting in Southeast Asia. He discusses the region’s diverse education landscape, the challenges of scaling edtech businesses, and the impact of China’s regulatory crackdown on the sector. He explains why many education startups fail, how funding and business models shape the industry, and why Chinese companies are now expanding into Southeast Asia. He also shares his thoughts on technology and children, emphasizing the importance of balancing screen time with real-world learning experiences.

1. Mike’s career pivots: Mike started in molecular research but left the lab for outdoor adventure guiding before becoming a science teacher and later moving into international development and education consulting.

2. Why he moved to Southeast Asia and stayed: He first came to Bangkok in 2007 for a short-term UNESCO assignment, initially expecting to be in Paris, but decided to stay in 2009 due to the region’s diversity and opportunities in education.

3. Education in Southeast Asia: A fragmented but dynamic market: The region has vastly different education systems, from strong public education in Singapore to accessibility issues in rural Indonesia, with a mix of public, private, and international models.

4. Why Edtech startups struggle to scale: Many Edtech founders enter the market without realizing similar solutions already exist, and education’s highly localized nature makes scaling across countries far more difficult than in other sectors.

5. How China’s crackdown changed its edtech sector: In 2021, China’s Double Reduction Policy forced major tutoring firms like TAL Education and New Oriental to go nonprofit, leading some Chinese edtech companies to expand into Southeast Asia.

6. The impact of AI and technology in education: Mike believes edtech is already "solution-saturated" and that the industry should focus on improving existing products rather than creating new ones, citing research he contributed to from the World Bank and Omidyar.

7. Technology and kids: He supports limiting screen time for young children, noting that many Silicon Valley tech founders do the same, emphasizing the importance of real-world learning and human connection.

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