The Future of EdTech: Outcomes, AI, and Investment Post-ESSER

As school leaders navigate the evolving landscape of educational technology, one question remains paramount: which tools truly impact student learning? With budgets tightening in a post-ESSER world and AI-driven solutions emerging at an unprecedented pace, decision-makers must look beyond marketing hype and demand real, measurable outcomes.

That’s exactly what Malvika Bhagwat, Partner and Head of Outcomes at Owl Ventures, tackles in this episode of the Learning Can’t Wait podcast. With a decade of experience in EdTech investment, Bhagwat sheds light on what it takes to build a sustainable, research-backed product that can withstand the scrutiny of today’s schools.

The Gold Standard of Research: Is It Still Relevant?

For years, randomized controlled trials (RCTs) have been the benchmark for evaluating educational tools. But as Bhagwat points out, in the fast-moving world of EdTech, that model isn’t always practical.

“RCTs made sense in the era of textbooks,” she explains. “Textbooks didn’t change for years, so you could collect long-term data and still have it be relevant. But EdTech products evolve constantly—sometimes every six months—making traditional research models less useful.”

Instead, Bhagwat  advocates for formative research—continuous usability studies, logic models, and expert-driven feedback loops that help products iterate in real-time. This agile approach not only ensures efficacy but also aligns with the way modern technology is developed and refined.

School Districts Are More Selective Than Ever

With ESSER funds drying up, school leaders are becoming increasingly selective about which tools they invest in. No longer are districts simply looking for engaging products; they’re demanding solutions that integrate seamlessly into their ecosystems, respect data privacy, and—most importantly—demonstrate a clear impact on student outcomes.

“The noise is fading,” Bhagwat  notes. “Schools are asking tough questions: Is this product working? What are students actually learning? Does it improve outcomes for all learners, especially those in Title I schools?”

Owl Ventures evaluates potential investments not just on traditional VC metrics like team strength and product-market fit, but also on three key educational impact areas:

• Scale: How many students does the product reach?
• Access: Is it serving diverse populations, including those in under-resourced communities?
• Outcomes: What measurable learning improvements does it drive?
• Diversity: Is the product and company a reflection of the community it is serving?

For school leaders, this means that the next wave of EdTech solutions will be held to higher standards than ever before. Vendors must not only promise results but prove them.

The Rise of AI in EdTech: Efficiency, Not Replacement

Artificial intelligence has exploded onto the scene, raising both excitement and concern in the education sector. But rather than replacing teachers, Bhagwat sees AI as a tool to enhance their work.

“AI is already making companies more efficient,” she explains. “Take Kyron Learning, for example. Educators can upload content, and the platform builds an interactive course for them. It’s like having a virtual teaching assistant that frees up time for deeper student engagement.”

While AI-driven tools can streamline lesson planning and personalize learning, Bhagwat  stresses that they should complement—not substitute—the human connection that great teaching provides. The key is ensuring that AI solutions are implemented thoughtfully, with proper training and safeguards in place.

The Next Frontier: Outcomes-Based Contracting & Cross-Sector Collaboration

One of the most promising trends Bhagwat sees on the horizon is the rise of outcomes-based contracting, where school districts and EdTech companies form true partnerships rather than transactional relationships.

“When both sides share accountability for results, implementation improves,” she explains. “Districts aren’t just buying a product; they’re working with a company to ensure it meets student needs.”

Additionally, she highlights the growing collaboration between venture capital firms and philanthropic organizations. Historically, these two worlds operated separately, but today, they are increasingly aligned in their goal of funding impactful education solutions.

“This shift is exciting,” she says. “Everyone is uniting around the same mission—ensuring that students get access to high-quality, research-backed learning tools.”

Advice for New Educators: Embrace Technology & Advocate for Yourself

Bhagwat closes with advice for early-career teachers, reminding them that technology can be a powerful ally in the classroom.

“Don’t be afraid of EdTech,” she urges. “Advocate for yourself. Seek out tools that support your teaching, and push for better professional development in tech integration. The more comfortable educators become with these solutions, the better we can serve students.”

As schools continue to recover from pandemic learning loss, the focus on efficacy and outcomes has never been more critical. Leaders who prioritize research-backed tools and strategic partnerships will be the ones who drive lasting change in education.

For a deeper dive into Owl Ventures' research framework, check out their Education Outcomes Report—a must-read for anyone making decisions in the EdTech space.