Short-term economic impact on educational companies caused by COVID-19
Long-term economic impact on educational companies caused by COVID-19

2. Demand

Despite the contingency scenario, 51.2% of respondents believe that there will be an increase in demand in their segment. EdTechs founders are more optimistic about the future. In contrast, maintainers are more pessimistic about the economic impacts caused by COVID-19.
Among the companies that concentrate the most optimism regarding the increase in demand are small companies (up to 50 employees), followed by larger companies with more than 2,000 employees.
The Northeast, Midwest and Southeast regions were more optimistic about the increase in demand in the sector. This scenario could be justified by the greater concentration of demand in these regions.

3. Growth strategy

The leaders of educational companies indicated that new technologies (37.2%) and new products (31.4%) will be the main growth strategies to overcome the crisis in the next 12 months.

"The products and services are virtual robotic laboratories in the cloud, we understand that the technologies offered at scale (via browser and distributed via the Internet) and that exploit virtualization and simulation of real situations have a growing trend." - School Principal Respondent.

"Our product is physical, and we are hostage to production and logistics at that moment. Thinking of something 100% digital becomes a priority, trying to keep the essence." - Founder respondent of an EdTech.

"We are actually working on several fronts. New products, verticals (evaluations, analytics, etc.) and digital transformation projects. We accelerate this because we have a large network of schools and with that we find opportunities not only to improve the operation but also creation of new businesses. We were already in transition and we saw the opportunity to accelerate because we believe that the long-term scenario is for more technology to be adopted by schools. We are developing several pilots including in partnership with edtechs thinking about this. " - Responding Director of an Educational Group.

4. Disruption

Most companies expect a disruption in the education market to happen in the next 24 months.
Most leaders (57.9%) believe that there will be a disruption in the Brazilian educational market in the next 24 months. And 20.7% bet that the transformation should occur before 2025 and 15.7% before 2030.

5. Use of solutions in the middle of the crisis

The survey showed that 48% of schools and HEIs hired one or more solutions from education startups to assist and support the teaching and learning process during the quarantine period.
Most of the leaders of schools and HEIs (61%) said that they are using apps and platforms from Brazilian educational startups in the free license modality during the quarantine period.

Testimonials about the impact on company operations

In the period from March 25 to March 31, we also heard, in a qualitative survey, leaders of education companies about their experiences in adapting their operations during quarantine.

"For Early Childhood Education up to the 3rd year of elementary school, teachers are posting videos with the orientations of the activities to be carried out, parents follow and post the children's task. From the 4th year on, classes take place synchronously, that is, live , online So far, students and teachers are engaged and motivated.

Our virtual environment is Google Classroom and Hangout Meet. The older students were already used to using the online environment, it was only necessary to share tutorials for the teachers and for the students advising on how the classes would occur during the quarantine period. "

Testimony by Priscila G. Gengo. - Director of Col├ęgio Anglo Morumbi - SP.

"TRIEduc develops educational assessment projects for high schools and pre-university entrance exams. Most of our clients asked us to send printed exams, as they wanted to faithfully simulate the application of tests such as the Enem - Exame Nacional do Ensino Medium.

At this time of quarantine, we offer all our customers a free exchange of the printed assessment application for online, carried out on our exclusive platform. Everyone's acceptance was positive and the execution of the project was well accepted by teachers and students. We believe that this solution will continue to be strengthened even after the return to face-to-face classes. "

Testimony by Diego Camacho - CEO of Trieduc.