Rita Ferrandino on Federal Funding, Innovation, and Women in EdTech

In a landscape of unprecedented educational change, Rita Ferrandino stands as a beacon for those seeking both clarity and opportunity. The founder of Arc Capital Development and innovation consultant at the University of Pennsylvania Graduate School of Education recently joined Hayley Spira-Bauer on the "Learning Can't Wait" podcast to share her insights on education's shifting terrain—from funding formulas to the future of classroom technology.

"Get super comfortable with the fact that there is going to be massive change," Ferrandino declares early in the conversation. "It's coming fast and it's going to affect public school education and private school education."

Following the Money

For educational institutions and vendors alike, understanding where the financial resources flow is critical. Ferrandino breaks it down with precision: only 10% of educational funding comes from the federal government, while states provide an average of 47%, and local property taxes account for 43%.

"All 50 states... can make their own funding formula decisions and they can distribute their money as they see fit," she explains. This creates a complex patchwork of funding mechanisms that educational leaders and vendors must navigate carefully.

With the end of pandemic-era Elementary and Secondary School Emergency Relief (ESSER) funds, school districts are facing difficult budgetary decisions. Ferrandino believes administrators will prioritize protecting "the human beings that are interfacing with students" over technology products, textbooks, or supplemental materials.

The Innovation Imperative

Despite funding challenges, Ferrandino remains bullish on education innovation, particularly through artificial intelligence. "I completely believe in the power of AI," she says, highlighting its potential for deeper personalized learning through improved assessment, customized curricula, and reduced administrative burdens on educators.

At Arc Capital Development, Ferrandino focuses on companies poised for scale—those that have moved beyond the early startup phase and reached an inflection point. "We're working with companies that have a founder that have taken them as far as they have gotten," she says. "They are positioned to be able to scale, and they need help in that inflection point."

Her work at the University of Pennsylvania complements this approach by connecting promising companies with research opportunities. This partnership provides "non-dilutive capital" for the companies while generating valuable efficacy data through third-party evaluation.

"We need to have evaluation of what's working, not working, so that we can continue to refine best practices to do what's best for kids," Ferrandino emphasizes.

The Power of Coalition

Throughout the conversation, Ferrandino returns to a central theme: the importance of networks and coalitions, especially for women in educational technology. As one of the founders of DOLS (Dirty Old Ladies of Software), she's dedicated to creating spaces where women can support each other through industry changes.

"The number of women investors is a pretty small percentage," she notes, "and the number of women entrepreneurs that are funded is even more pathetic." To address this imbalance, Ferrandino has helped establish women investor groups and strengthened international coalitions, particularly in Australia and New Zealand.

"We need to double down on coalitions," she says. "There is power in numbers."

Advice for Educators and Entrepreneurs

For educators feeling burnout, Ferrandino offers a refreshing perspective. Rather than leaving the field entirely, she encourages them to explore evolving roles within education: "There's a lot more part-time work, contract work. There's a lot of people now innovating new jobs, like part-time sub roles that have meaning, part-time STEM coordinators."

To aspiring entrepreneurs, her advice is straightforward: "Start selling right away. Learn how to sell. I don't care if you're not selling it for even a whole lot of money, just get some people giving you checks and get the ball rolling."

Looking Ahead

As federal policy shifts under new leadership, Ferrandino suggests closely monitoring developments at the Department of Education and state-level changes, especially in states with upcoming gubernatorial elections. "You need to go where the puck is going, not where it has been," she advises.

Despite the uncertainties, she remains optimistic about the future of educational innovation. Her open-door approach—"Just link in with me"—reflects a collaborative spirit that may prove essential as education navigates its next great transformation.

In Ferrandino's world, change isn't just inevitable; it's an opportunity waiting to be seized.