Investment Strategy

From the notebook to the cloud: How EdTech is revolutionizing learning in Latin America

Mar 15, 2023

While covid-19 sparked a demand for all types of digital educational experiences, investors’ interest in ventures that support workforce upskilling is sustained as the pandemic subsides.

This article was written by Economist Impact, with support from J.P. Morgan.

Educational technology (edtech), which refers to the use of apps and tech for teaching and learning, became a key tool for governments and businesses in the wake of covid-19, attracting investors’ attention.1 The pandemic catalyzed edtech adoption, as years of digitalization and technological advances were compressed, implemented rapidly over the span of a few months.2 Investments followed this same trajectory. Between 2020 and 2021 edtech ventures raised over US$35bn dollars globally, the same amount recorded in the five years before the pandemic.3 In Latin America, investments in 2021 were sixfold the funding in previous years.4 However, edtech funding in the region remains low relative to global investments over the past decade, having raised just US$1bn compared with US$68.6bn globally.5

While edtech investments are now stabilizing after such explosive growth, they are still projected to remain above their pre-covid levels, thereby demonstrating their long-term potential.6 In order to assess this potential, this article explores which investments are working, what challenges edtech can successfully solve, where there’s opportunity, and what future edtech prospects might look like. Our analysis indicates that over the short term upskilling and workforce education, which currently represent the largest share of edtech investments, are likely to continue gaining traction. These areas address the urgent skills gap that prevails in the region and help meet the increasing demands from nearshoring, but do not face the same barriers to entry that other types of edtech innovations will have to overcome.

LatAm’s need for edtech

Latin America has just under half a billion people demanding innovation in literacy and numeracy, as well as the acquisition of 21st-century skills and knowledge. In Argentina, 73% of companies struggle to hire staff with the right skill sets. 67% of Peruvian companies report a talent shortage and difficulty hiring, while for Mexican companies that figure stands at 65%.7 66% of Costa Rican companies and 61% Colombian companies report the same.8 A 2021 OECD study found that the lack of quality jobs is a key driver of social dissatisfaction in the region, and calls for an ambitious regional agenda to increase innovation and capacity development through education and skills acquisition to tackle this challenge.9

Another factor that will drive the need to reduce the skill gap in the region is the developing trend of nearshoring in the region. Geopolitical and supply chain considerations are influencing companies, particularly in the United States, to move their operation to locations closer to their markets, that require less energy for transportation and have better political alignment. In this context, Latin America is becoming one of the most attractive options for relocation and several countries in the region are competing for these new sources of employment and investment.10 Greater participation in global value chains results in transfer of technology and knowledge and more job opportunities, and Latin America is predicted to increase exports in the auto industry, textiles, pharmaceuticals and renewable energy, to name a few.11 However, in order to take advantage of this opportunity, there is a need for technologically advanced workers who can adequately address the demands of these higher-skill jobs. This need will drive an increased demand for greater technical expertise in these areas as well as improved language capabilities, creating an even greater urgency to close the Latin American skills gap.

This represents an unmatched growth opportunity for the sector in the region. Fifty-five per cent of Latin American adults who engage in open or distance education have found it a useful tool to improve their job performance and career prospects.12 As part of their innovative offerings, edtech companies ensure instruction is aligned with the needs of each student, allowing them to customize their learning experience and adjust the pace to accelerate their program of study or take additional time to ensure mastery.13 These offerings also reduce the cost of education by reducing reliance on manual resources, making updates to learning materials simple, and introducing automation.14

A highly competitive job market further encourages students of all ages to further develop various competencies, creating a demand for educational technology, and a demand for institutions to digitally transform.15 Edtech uptake among young adults in particular is growing at a faster pace in Latin America than in other regions in the world. In a recent survey conducted by Economist Impact, we found that 86% of Brazilian youth had participated in online education or courses to improve their professional skills compared with 78% of young people in India and 74% in the US.16

Value of knowledge: assessing edtech investments

In response to this growing demand, edtechs dedicated to workforce upskilling have seen the most expansion in the region. Workforce and management systems, which are considered corporate learning ventures, comprise almost half the edtech startups founded in Latin America (See Graph 1). Workforce upskilling-focused edtechs include firms such as Coderhouse, a startup that provides a platform for LatAm professionals to take live, online cohort-based courses in topics such as data, coding, design and marketing. The classes are offered in small groups led by instructors and teaching assistants, and the curriculum is designed through partnerships with top companies. The courses are offered at an accessible price point per course.17 Similarly, Bedu, a Mexican venture, provides technical courses designed to help employees build practical skills, with a focus on upskilling to boost salaries.18

Percentage of edtechs by type, of a sample cohort of 100 start-ups in LatAm

Workforce and management systems represent almost half the start-ups in Latin America

Source:  HolonIQ, April 2022
Pie chart describing the percentage of educational technology firms (edtechs) by type, of a sample cohort of 100 start ups in LatAm. The units are in percentage. Workforce edtechs represent 25% of the cohort. Management system edtechs represent 23% of the cohort. STEAM (science, technology, engineering, arts and mathematics) focused edtechs represent 15% of the cohort. Online learning edtechs represent 11% of the cohort. Tutoring and test preparation represents 11% of edtechs in the cohort. Content edtechs represent 7% of the edtech types. Testing represents 4% of the edtechs by type. Language learning captures 4% of the edtech types. Advanced technology focused edtechs represent 4% of the edtechs in the cohort.

A study looking at a sample cohort of edtech ventures in the region also found that workforce-focused edtechs attract the majority of start-up funding, indicating an increasing focus on ventures oriented to learners in the workforce.19 Investments in workforce and upskilling-focused edtechs further increased as the pandemic compelled companies to rapidly scale. In 2021 alone LatAm raised 46% of the total investment amount the region had captured over the previous decade. It experienced an influx of venture capital (VC) investment totaling sixfold the amount that it received in 2020, equal to US$1bn.20 (see Graph 2)

Funding for Latin American Edtechs exploded in 2021

VC funding for LatAm Edtech ventures 2011-2121

Source: Inter-American Development Bank, December 2021
Bar chart showing venture capital funding funding for Latin American educational technology companies from 2011 to 2021. The units are in millions of US dollars. In 2011, venture capital funding was equivalent to $12 million USD. In 2012, venture capital funding was equivalent to $56 million USD. In 2013, venture capital funding was equivalent to $35 million USD. In 2014, venture capital funding was equivalent to $26 million USD. In 2015, venture capital funding was equivalent to $127 million USD. In 2016, venture capital funding was equivalent to $35 capital USD. In 2017, venture capital funding was equivalent to $75 million USD. In 2018, venture capital funding was equivalent to $44 million USD. In 2019, venture capital funding was equivalent to $73 million USD. In 2020, venture capital funding was equivalent to $83 million USD. In 2021, venture capital funding was equivalent to $496 million USD. The total value of venture capital funding in edtechs was $1,073 USD million from 2011 - 2021.

Comparing against global markets, in both Europe and Latin America workforce solutions are the most relevant edtech sectors receiving sizable investments. A breakdown of VC investments in Europe shows that corporate learning takes the biggest share (35%). Although Latin America lags in terms of funding value, its investments have a similar distribution.22 Over half (55%) of private funding in LatAm edtechs in the past five years has gone into the workforce sector.23

Even though Latin America’s edtech investments are behind those of global markets, its future revenue is set to grow. Latin America is the fourth-largest edtech market in the world—behind North America, Western Europe and Asia in terms of revenue—and its e-learning market is expected to generate revenue of over US$3bn by 2023.24 Globally, the edtech market is growing at a rate of 16.3% and is set to reach US$404bn in total global expenditure, suggesting an overall trend toward growth.25

A decade of development in edtech in the LatAm region has helped the sector expand dramatically in the past 12 months. The Latin American edtech ecosystem has grown to encompass more than 1,500 companies.26 Brazil represents over 50% of all edtech VC funding in this period. Mexico follows at 19%, then Peru, Argentina, Colombia and Chile each capture 6-8% of funding.27 (See Graph 3)

Distribution of edtech startups across countries in LatAm

Source: Inter- American Development Bank, December 2021
Image of a map of Latin America and the Caribbean describing the distribution of edtech startups on a country by country basis, assessing number of start ups, the relative regional percentage of start ups, the funding value of start ups and the relative regional percentage of funding value. Mexico has 152 start ups, equivalent to 11% of all startups in the region. Mexico edtechs have a funding value of $80 million USD, equivalent to 7% regionally. The Caribbean has 20 start ups, equivalent to 1% of all startups in the region. Caribbean edtechs have a funding value of $2 million USD, equivalent to 1% regionally. Colombia has 96 start ups, equivalent to 7% of all startups in the region. Colombian edtechs have a funding value of $23 million USD, equivalent to 4% regionally. Brazil has 886 start ups, equivalent to 62% of all startups in the region. Brazilian edtechs have a funding value of $474 million USD, equivalent to 60% regionally. Uruguay has 11 start ups, equivalent to 1% of all startups in the region. Uruguyan edtechs have a funding value of $2 million USD, equivalent to 1% regionally. Argentina has 108 start ups, equivalent to 8% of all startups in the region. Argentinian edtechs have a funding value of $121 million USD, equivalent to 11% regionally. Chile has 114 edtech startups, equivalent to 8% of all startups in the region. Chilean edtechs have a funding value of $32 million USD, equivalent to 3% regionally. Peru has 44 edtech startups, equivalent to 3% of all startups in the region. Peruvian edtechs have a funding value of $142 million USD, equivalent to 13% regionally. Guatemala has 6 edtech startups, equivalent to 1% of all startups in the region. Guatemalan edtechs have a funding value of $2 million USD, equivalent to 1% regionally. Mexico has 152 edtech startups, equivalent to 11% of all startups in the region. Mexican edtechs have a funding value of $80 million USD, equivalent to 7% regionally.

However, as we pointed out in our recent research on tech start-ups, there are only 15 start-ups in Latin America that are valued at more than US$1m, making up only 0.5% of the region’s start-up investment.28 Not all opportunities in edtech will have the capacity to scale internationally, but opportunities that address regional educational needs will capture a significant share of the market, and present meaningful opportunities to capitalize on the overall growth potential. 

Grading LatAm market readiness

To understand the potential of edtech ventures, investors should consider the opportunities that will fulfill the most prescient need in the region. While covid-19 sparked a demand for all types of digital educational experiences, investors’ interest in ventures that support workforce upskilling is sustained as the pandemic subsides. An analysis of the population, education levels, skill gaps and current use of education tools online suggests that there is a large untapped market for workforce development solutions that will generate an enduring demand for these applications in the near future (see Table 1).

A sampling of Latin American countries reflects a sizable working population and growing employment rates. Twenty-four percent of jobs will face a high risk of automation, and an additional 35% of jobs in Latin America are likely to experience significant changes in the tasks that workers carry out daily, so a significant portion of the working population could feasibly benefit from some form of upskilling or reskilling.29 Middling availability of skilled labor in countries like Brazil and Ecuador and a lack of quality labor in countries like Peru further indicate the need for skill building across industries. On the positive side, high literacy levels across the region and overall comfort using the internet for education purposes suggest that Latin Americans have the capacity to adopt edtech innovations into their routines. For example, 42% of the population in Mexico and 34% in Colombia have taken an online course. These data point to an environment that is opportune for workforce edtechs in the short term. The need to bridge the regional skill gap, coupled with the initial uptake and spending on online education ventures in the past few years demonstrates the market potential for edtech solutions.

Table 1: Assessing workforce upskilling market readiness across LatAm countries (comparing 2021 data or most recent yearly data on employment, population, skill gaps and usage)

Sources: Economist Intelligence Unit and International Telecommunications Union Data30, 2022
Chart of data assessing workforce upskilling market readiness across LatAm countries, comparing 2021 data or most recent yearly data on employment, population, skill gaps and usage. Data presented is the most up to date data available presented: Brazil data is from 2018, Chile data is from 2017, Colombia data is from 2020, Ecuador data is from 2020, Mexico data is from 2020, Peru data is from 2020, Venezuela data is from 2016. In Brazil, under the population header, the % of population (ages 15 to 64) is 69.9%. Under the employment header, the growth in the number of people officially in employment is 4.2% and the unemployment rate is 11.1%. Under the skill gap hearer, the availability of skilled labor rating (on a scale of 1-5 with 5 equalling high) is 2.4. The EIU quality of labor rating (on a scale of 1-5, with 5 equalling high) is 3. Under the usage header, consumer expenditure on leisure and education (in USD) is $60,172, individuals using the internet by doing an online course is 21.0%, there is no data available on individuals using the internet by using consulting wikis, encyclopedias or other websites for learning purposes, and the adult literacy rate is 93.2%. In Chile, under the population header, the percent of population (ages 15 to 64) is 68.2%. Under the employment header, the growth in the number of people officially in employment is 8.1% and the unemployment rate is 7.2%. Under the skill gap header, the availability of skilled labor rating (on a scale of 1-5 with 5 equalling high) is 3.4. The EIU quality of labor rating (on a scale of 1-5, with 5 equalling high) is 4. Under the usage header, consumer expenditure on leisure and education (in USD) is $25,435, percentage of individuals using the internet by doing an online course is not available, there is no data available on individuals using the internet by using consulting wikis, encyclopedias or other websites for learning purposes, and the adult literacy rate is 96.4%. In Colombia, under the population header, the percent of population (ages 15 to 64) is 66.9%. Under the employment header, the growth in the number of people officially in employment is 7.2% and the unemployment rate is 13.8%. Under the skill gap header, the availability of skilled labor rating (on a scale of 1-5 with 5 equalling high) is 4 The EIU quality of labor rating (on a scale of 1-5, with 5 equalling high) is 3. Under the usage header, consumer expenditure on leisure and education (in USD) is $20,375, percentage of individuals using the internet by doing an online course is 34.0%, percentage of individuals using the internet by using consulting wikis, encyclopedias or other websites for learning purposes is 34%, and the adult literacy rate is 95.6%. In Ecuador, under the population header, the percentage of population (ages 15 to 64) is 66.2%. Under the employment header, the growth in the number of people officially in employment is 10.3% and the unemployment rate is 4.8%. Under the skill gaps header, the availability of skilled labor rating (on a scale of 1-5 with 5 equalling high) is 2.4. The EIU quality of labor rating (on a scale of 1-5, with 5 equalling high) is 2. Under the usage header, consumer expenditure on leisure and education (in USD) is $6,772. The percentage of individuals using the internet by doing an online course is not available, the percentage of individuals using the internet by using consulting wikis, encyclopedias or other websites for learning purposes is not available, and the adult literacy rate is 93.6%. In Mexico, under the population header, the percentage of the population ages 15 to 64 is 67.4%. Under the employment header, the growth in the number of people officially in employment is 8.4% and the unemployment rate is 4.1%. Under the skill gaps header, the availability of skilled labor rating (on a scale of 1-5 with 5 equalling high) is 3. The EIU quality of labor rating (on a scale of 1-5, with 5 equalling high) is 3. Under the usage header, consumer expenditure on leisure and education (in USD) is $52,157. The percentage of individuals using the internet by doing an online course is 42%, the percentage of individuals using the internet by using consulting wikis, encyclopedias or other websites for learning purposes is 69%, and the adult literacy rate is 95.2%. In Peru, under the population header, the percentage of the population ages 15 to 64 is 65.4%. Under the employment header, the growth in the number of people officially in employment is 10.9% and the unemployment rate is 10.9%. Under the skill gaps header, the availability of skilled labor rating (on a scale of 1-5 with 5 equalling high) is 4. The EIU quality of labor rating (on a scale of 1-5, with 5 equalling high) is 2. Under the usage header, consumer expenditure on leisure and education (in USD) is $20,336. The percentage of individuals using the internet by doing an online course is 9.5%, the percentage of individuals using the internet by using consulting wikis, encyclopedias or other websites for learning purposes is not available, and the adult literacy rate is 94.5%. In Venezuela, under the population header, the percentage of the population ages 15 to 64 is 66.1%. Under the employment header, the growth in the number of people officially in employment is 5% and the unemployment rate is 45%. Under the skill gaps header, the availability of skilled labor rating (on a scale of 1-5 with 5 equalling high) is 3. The EIU quality of labor rating (on a scale of 1-5, with 5 equalling high) is 3. Under the usage header, consumer expenditure on leisure and education (in USD) is $4,193. The percentage of individuals using the internet by doing an online course is not available, the percentage of individuals using the internet by using consulting wikis, encyclopedias or other websites for learning purposes is not available, and the adult literacy rate is 97.1%.
The heavy reliance edtechs have on technology is a limiting factor, but is more immediately pressing in the case of K-12 edtechs, the second-most prevalent edtech venture type. Institutional hurdles to adoption and reliance on household access to technology make these ventures more challenging compared with upskilling projects. Budgets, bureaucracy and the need for collaboration across numerous stakeholders (including educational institutions, companies, government, regulatory bodies, parents and students) pose implementation and institutional challenges in the K-12 space, and many institutions are not yet mature enough to successfully incorporate remote and digital content.31 Digital readiness poses additional hurdles. Though 74% of Latin Americans use the internet, indicating high internet penetration, questions about affordability, connectivity and readiness persist32 (see Graph 4). According to the latest edition of Economist Impact’s Inclusive Internet Index, the region’s internet is highly relevant and affordable, but there are persistent gaps in availability and digital readiness. For example, more than six out of ten households with their per-head income in the lower quintile of income distribution do not have access to the fixed high‑speed broadband internet connection needed to support remote working and studying.33 To this end, comparatively, workforce upskilling remains the more viable edtech venture type in the short term.

Internet penetration across LatAm countries, considering connectivity, availability, affordability, relevance and readiness

LatAm has a high degree of relevance and affordability, but experiences overall gaps in availability and readiness.

Source: The Economist Impact Inclusive Internet Index. Información a 2022. Each category ranked on a scale of 100, for a maximum total score of 400 across all 4 indicators
Bar graph highlighting internet connectivity across Latin American countries, considering connectivity, availability, affordability, relevance and readiness. Each of the four categories (connectivity, availability, affordability, relevance and readiness) are ranked on a scale of 100, for a maximum score of 400 across all four indicators. Chile scores 76.4 in availability, 86.4 in affordability, 79.4 in readiness and 80.7 in relevance. Trinidad & Tobago score 72.9 in availability, 79.6 in affordability, 63 in readiness and 42.2 in relevance. Brazil scores 72.1 in availability, 86 in affordability, 67.8 in readiness and 92.6 in relevance. Brazil scores 72.1 in availability, 66 in affordability, 67.8 in readiness and 92.6 in relevance. Argentina scores 71.5 in availability, 82.2 in affordability, 72.8 in readiness and 84.6 in relevance. Colombia scores 66.7 in availability, 82.4 in affordability, 66.7 in readiness and 82 in relevance. Mexico scores 66.7 in availability, 84.7 in affordability, 80 in readiness, and 87.4 in relevance. Peru scores 66.7 in availability, 81.9 in affordability, 77.9 in readiness, 85.6 in relevance. Panama scores 65.4 in availability, 81.7 in affordability, 66.4 in readiness, 68.1 in relevance. Jamaica scores 65.3 in availability, 75.1 in affordability, 58.9 in readiness, and 51.8 in relevance. Paraguay scores 64 in availability, 79.9 in affordability, 57.2 in readiness and 76.5 in relevance. The Dominican Republic scores 63.8 in availability, 78.4 in affordability, 68.4 in readiness and 74.3 in relevance. El Salvador scores 59.7 in availability, 79.3 in affordability, 45 in readiness and 53 in relevance. Venezuela scores 56.2 in availability, 71 in affordability, 39.4 in readiness and 77.3 in relevance. Guatemala scores 54 in availability, 74.8 in affordability, 41.5 in readiness and 78.2 in relevance. Honduras scores 51.7 in availability 70.4 in affordability, 50.8 in readiness, 63.7 in relevance. Cuba scores 49.7 in availability, 63.9 in affordability, 53.7 in readiness, and 58.3 in relevance. Comparatively, the highest global scores were 89.9 in availability, 89.6 in affordability, 81.6 in readiness and 92.6 in relevance. The LatAm average is 63.9 in availability, 78.6 in affordability, 61.8 in readiness and 72.3 in relevance.

Conclusion

Corporate market and upskilling has been the primary destination for investment in Latin America and remains a favorable opportunity, particularly in the short term. Immediate demand for skilled labor and increasing competition propel the market, creating current and ongoing opportunities. Workforce education globally is projected to have a growth rate of 3.9%, and investments are projected to increase from US$396bn in 2019 to US$498bn in 2025.34 Since Latin America typically mirrors global edtech trends, albeit at a smaller scale, the sector's prospects in this region look optimistic for the future.

1 Matthew Lynch, The Tech Edvocate, “A 2022 Definition of Edtech”, July 31st 2020, https://www.thetechedvocate.org/a-2021-definition-of-edtech/

2Bonny Renner, LABS, “Edtechs are poised for ascension”, September 23rd 2021, https://labsnews.com/en/articles/business/edtech-giants-are-poised-for-ascension/

3Rhys Spence, TechCrunch, “European, North American edtech startups see funding triple in 2021”, January 27th 2022, https://techcrunch.com/2022/01/27/european-north-american-edtech-startups-see-funding-triple-in-2021/

4 Holon IQ, “Education Technology in Latin America and the Caribbean”, 2022, https://www.holoniq.com/notes/education-technology-in-latin-america-and-the-caribbean

5 Holon IQ, “Global EdTech Funding 2022 - Half Year Update”, 2022, https://www.holoniq.com/notes/global-edtech-funding-2022-half-year-update ; Holon IQ, “Education Technology in Latin America and the Caribbean”, 2022, https://www.holoniq.com/notes/education-technology-in-latin-america-and-the-caribbean

6 Holon IQ, “Global EdTech Funding 2022 - Half Year Update”, 2022, https://www.holoniq.com/notes/global-edtech-funding-2022-half-year-update

7 ManpowerGroup, “THE 2022 GLOBAL TALENT SHORTAGE”, https://go.manpowergroup.com/hubfs/Talent%20Shortage%202022/MPG-Talent-Shortage-Infographic-2022.pdf; the World Economic Forum, “In Latin America, companies still can’t find the skilled workers they need”, March 30th 2017, https://www.weforum.org/agenda/2017/03/in-latin-america-companies-still-can-t-find-the-skilled-workers-they-need/

8 ManpowerGroup, “THE 2022 GLOBAL TALENT SHORTAGE”, https://go.manpowergroup.com/hubfs/Talent%20Shortage%202022/MPG-Talent-Shortage-Infographic-2022.pdf; the World Economic Forum, “In Latin America, companies still can’t find the skilled workers they need”, March 30th 2017, https://www.weforum.org/agenda/2017/03/in-latin-america-companies-still-can-t-find-the-skilled-workers-they-need/

9 OECD, “Latin American Economic Outlook 2021”, https://www.oecd-ilibrary.org/docserver/5fedabe5-en.pdf?expires=1663178488&id=id&accname=guest&checksum=4C984F1027BB07A153CC171DAB962D3C

10 Wilson Center, “Nearshoring in the Americas,” October 18, 2022, https://www.wilsoncenter.org/audio/nearshoring-americas

11 Inter-American Development Bank. “Nearshoring can add annual $78 bln in exports from Latin America and Caribbean,” June 07, 2022, https://www.iadb.org/en/news/nearshoring-can-add-annual-78-bln-exports-latin-america-and-caribbean

12 OECD, “Making the Most of Technology for Learning and Training in Latin America”, https://www.oecd-ilibrary.org/sites/14bb093f-en/index.html?itemId=/content/component/14bb093f-en

13 Anne Olsen, Brookings, “Personalized learning: The importance of teachers in a technology-driven world”, September 27th 2017, https://www.brookings.edu/blog/brown-center-chalkboard/2017/09/27/personalized-learning-the-importance-of-teachers-in-a-technology-driven-world/

14 Sara Munoz, D2L, “How Can Technology Help Cut Costs in Education?”, May 29th 2017, https://www.d2l.com/en-eu/blog/can-technology-help-cut-costs-education/

15 Inter-American Development Bank and Holon IQ, "Education Technology in Latin America and the Caribbean”, December 2021, https://publications.iadb.org/publications/english/document/Education-Technology-in-Latin-America-and-the-Caribbean.pdf; Institute for the Future of Education, “Advances and Challenges of EdTech in Latin America and the Caribbean”, https://observatory.tec.mx/edu-news/edtech-in-latin-america#:~:text=Last%20year%2C%20educational%20technology%20boomed,experiences%2C%20and%20improved%20student%20outcomes.

16 Economist Impact, “Entrepreneurial Dreams”, https://impact.economist.com/projects/young-voices/

17 Natasha Mascarenhas, TechCrunch, “As edtech evolves, LatAm reskilling platforms raise millions to bring outcomes into the mix”, August 5th 2021, https://techcrunch.com/2021/08/05/as-edtech-evolves-latam-reskilling-platforms-raise-millions-to-bring-outcomes-into-the-mix/

18 Crunchbase: Bedu, https://www.crunchbase.com/organization/bedu; Lavca Venture Investors, “EDTECH STARTUPS IN LATIN AMERICA

2021 SURVEY RESULTS”, https://lavca.org/2021-startup-survey-edtech/

19 Holon IQ, “2021 LATAM EdTech 100”, September 21st 2021, https://www.holoniq.com/notes/2021-latam-edtech-100

20 Institute for the Future of Education, “Advances and Challenges of EdTech in Latin America and the Caribbean”, https://observatory.tec.mx/edu-news/edtech-in-latin-america#:~:text=Last%20year%2C%20educational%20technology%20boomed,experiences%2C%20and%20improved%20student%20outcomes.

21 Inter-American Development Bank and Holon IQ, "Education Technology in Latin America and the Caribbean”, December 2021, https://publications.iadb.org/publications/english/document/Education-Technology-in-Latin-America-and-the-Caribbean.pdf

22 Juan Manuel Pico, K12 Digest, “EdTech in Latin America: An “Education Renaissance” Tale”, March 31st 2022, https://www.k12digest.com/edtech-in-latin-america-an-education-renaissance-tale/

23 https://publications.iadb.org/publications/english/document/Education-Technology-in-Latin-America-and-the-Caribbean.pdf

24 Inter-American Development Bank and Holon IQ, "Education Technology in Latin America and the Caribbean”, December 2021, https://publications.iadb.org/publications/english/document/Education-Technology-in-Latin-America-and-the-Caribbean.pdf

25Holon IQ, “Sizing the Global EdTech Market. Mode vs Model”, February 23rd 2021,  https://www.holoniq.com/notes/sizing-the-global-edtech-market; Cision, “Latin America E-Learning Market Expected To Generate Revenues Over $3 Billion By 2023”, February 9th 2022, https://www.prnewswire.com/news-releases/latin-america-e-learning-market-expected-to-generate-revenues-over-3-billion-by-2023-301478296.html

26 Inter-American Development Bank and Holon IQ, "Education Technology in Latin America and the Caribbean”, December 2021, https://publications.iadb.org/publications/english/document/Education-Technology-in-Latin-America-and-the-Caribbean.pdf

27 Ibid

28 J.P. Morgan, “Beyond the unicorns: Smaller companies also hold great promise In Latin America”, October 14th 2021,  https://privatebank.jpmorgan.com/gl/en/insights/planning/beyond-the-unicorns-smaller-companies-also-hold-great-promise-in-latin-america&sa=D&source=docs&ust=1661444590657639&usg=AOvVaw3HENMtS0rq0Wwtr3ygQ43K

29 OECD, “Effective Adult Learning Policies : Challenges and Solutions for Latin American Countries”, https://www.oecd-ilibrary.org/sites/0dd92af0-en/index.html?itemId=/content/component/0dd92af0-en

30 ITU, “About International Telecommunication Union (ITU)”, https://www.itu.int/en/about/Pages/default.aspx

31 Institute for the Future of Education, “Advances and Challenges of EdTech in Latin America and the Caribbean”,  https://observatory.tec.mx/edu-news/edtech-in-latin-america#:~:text=Last%20year%2C%20educational%20technology%20boomed,experiences%2C%20and%20improved%20student%20outcomes

32 The World Bank, “Individuals using the Internet (% of population) - Latin America & Caribbean”, https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=ZJ ; Economist Impact, “The Inclusive Internet Index”, https://impact.economist.com/projects/inclusive-internet-index/ ; https://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx 

33 OECD, “Latin American Economic Outlook 2021”,  https://www.oecd-ilibrary.org/docserver/5fedabe5-en.pdf?expires=1663178488&id=id&accname=guest&checksum=4C984F1027BB07A153CC171DAB962D3C

34 Holon IQ, “Sizing the Global EdTech Market. Mode vs Model”, February 23rd 2021, https://www.holoniq.com/notes/sizing-the-global-edtech-market

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KEY RISKS

This material is for information purposes only, and may inform you of certain products and services offered by private banking businesses, part of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information.

GENERAL RISKS & CONSIDERATIONS

Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan team.

NON-RELIANCE

Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/ reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events.

Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

YOUR INVESTMENTS AND POTENTIAL CONFLICTS OF INTEREST

Conflicts of interest will arise whenever JPMorgan Chase Bank, N.A. or any of its affiliates (together, “J.P. Morgan”) have an actual or perceived economic or other incentive in its management of our clients’ portfolios to act in a way that benefits J.P. Morgan. Conflicts will result, for example (to the extent the following activities are permitted in your account): (1) when J.P. Morgan invests in an investment product, such as a mutual fund, structured product, separately managed account or hedge fund issued or managed by JPMorgan Chase Bank, N.A. or an affiliate, such as J.P. Morgan Investment Management Inc.; (2) when a J.P. Morgan entity obtains services, including trade execution and trade clearing, from an affiliate; (3) when J.P. Morgan receives payment as a result of purchasing an investment product for a client’s account; or (4) when J.P. Morgan receives payment for providing services (including shareholder servicing, recordkeeping or custody) with respect to investment products purchased for a client’s portfolio. Other conflicts will result because of relationships that J.P. Morgan has with other clients or when J.P. Morgan acts for its own account.

Investment strategies are selected from both J.P. Morgan and third-party asset managers and are subject to a review process by our manager research teams. From this pool of strategies, our portfolio construction teams select those strategies we believe fit our asset allocation goals and forward-looking views in order to meet the portfolio's investment objective.

As a general matter, we prefer J.P. Morgan managed strategies. We expect the proportion of J.P. Morgan managed strategies will be high (in fact, up to 100 percent) in strategies such as, for example, cash and high-quality fixed income, subject to applicable law and any account-specific considerations.

While our internally managed strategies generally align well with our forward-looking views, and we are familiar with the investment processes as well as the risk and compliance philosophy of the firm, it is important to note that J.P. Morgan receives more overall fees when internally managed strategies are included. We offer the option of choosing to exclude J.P. Morgan managed strategies (other than cash and liquidity products) in certain portfolios.

The Six Circles Funds are U.S.-registered mutual funds managed by J.P. Morgan and sub-advised by third parties. Although considered internally managed strategies, JPMC does not retain a fee for fund management or other fund services.

LEGAL ENTITY, BRAND & REGULATORY INFORMATION

In the United States, bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank, N.A. Member FDIC.

JPMorgan Chase Bank, N.A. and its affiliates (collectively “JPMCB”) offer investment products, which may include bank managed investment accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC (“JPMS”), a member of FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPM. Products not available in all states.

In Germany, this material is issued by J.P. Morgan SE, with its registered office at  Taunustor 1 (TaunusTurm), 60310 Frankfurt am Main, Germany, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB).   In Luxembourg, this material is issued by J.P. Morgan SE – Luxembourg Branch, with registered office at European Bank and Business Centre, 6 route de Treves, L-2633, Senningerberg, Luxembourg, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Luxembourg Branch is also supervised by the Commission de Surveillance du    Secteur Financier (CSSF); registered under R.C.S Luxembourg B255938. In the United Kingdom, this material is issued by J.P. Morgan SE – London Branch, registered office     at 25 Bank Street, Canary Wharf, London E14 5JP, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – London Branch is also supervised by the Financial Conduct Authority and Prudential Regulation Authority. In Spain, this material is distributed by J.P. Morgan SE, Sucursal en España, with registered office at Paseo de la Castellana, 31, 28046 Madrid, Spain, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE, Sucursal en España is also supervised by the Spanish Securities Market Commission (CNMV); registered with Bank of Spain as a branch of J.P. Morgan SE under code 1567. In Italy, this material is distributed by J.P. Morgan SE – Milan Branch, with its registered office at Via Cordusio, n.3, Milan 20123,  Italy, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Milan Branch is also supervised by Bank  of Italy and the Commissione Nazionale per le Società e la Borsa (CONSOB); registered with Bank of Italy as a branch of J.P. Morgan SE under code 8076; Milan Chamber of Commerce Registered Number: REA MI 2536325. In the Netherlands, this material is distributed by  J.P. Morgan SE – Amsterdam Branch, with registered office at World Trade Centre,       Tower B, Strawinskylaan 1135, 1077 XX, Amsterdam, The Netherlands, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Amsterdam Branch is also supervised by De Nederlandsche Bank (DNB) and the Autoriteit Financiële Markten (AFM) in the Netherlands. Registered with the Kamer van Koophandel as a branch of J.P. Morgan SE under registration number 72610220. In Denmark, this material is distributed by J.P. Morgan SE – Copenhagen Branch, filial af J.P. Morgan SE, Tyskland, with registered office at Kalvebod Brygge 39-41, 1560 København V, Denmark, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Copenhagen Branch, filial af J.P. Morgan SE, Tyskland is also supervised by Finanstilsynet (Danish FSA) and is registered with Finanstilsynet as a branch of J.P. Morgan SE under code 29010. In Sweden, this material is distributed by J.P. Morgan SE – Stockholm Bankfilial, with registered office at Hamngatan 15, Stockholm, 11147, Sweden, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Stockholm Bankfilial is also supervised by Finansinspektionen (Swedish FSA); registered with Finansinspektionen as a branch of J.P. Morgan SE. In Belgium, this material is distributed by J.P. Morgan SE – Brussels Branch with registered office at 35 Boulevard du Régent, 1000, Brussels, Belgium, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB);  J.P. Morgan SE Brussels Branch is also supervised by the National Bank of Belgium (NBB) and the Financial Services and Markets Authority (FSMA) in Belgium; registered with the NBB under registration number 0715.622.844. In Greece, this material is distributed by J.P. Morgan SE – Athens Branch, with its registered office at 3 Haritos Street, Athens, 10675, Greece, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Athens Branch is also supervised by Bank of Greece; registered with Bank of Greece as a branch of J.P. Morgan SE under code 124; Athens Chamber of Commerce Registered Number 158683760001; VAT Number 99676577. In France, this material is distributed by J.P. Morgan SE – Paris Branch, with its registered office at 14, Place Vendôme 75001 Paris, France, authorized by the Bundesanstaltfür Finanzdienstleistungsaufsicht(BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB) under code 842 422 972; J.P. Morgan SE – Paris Branch is also supervised by the French banking authorities the  Autorité de Contrôle Prudentiel et de Résolution (ACPR) and the Autorité des Marchés Financiers (AMF). In Switzerland, this material is distributed by J.P. Morgan (Suisse) SA, with registered address at rue du Rhône, 35, 1204, Geneva, Switzerland, which is authorised and supervised by the Swiss Financial Market Supervisory Authority (FINMA) as a bank and a securities dealer in Switzerland.

This communication is an advertisement for the purposes of the Markets in Financial Instruments Directive (MIFID II) and the Swiss Financial Services Act (FINSA). Investors should not subscribe for or purchase any financial instruments referred to in this advertisement except on the basis of information contained in any applicable legal documentation, which is or shall be made available in the relevant jurisdictions (as required).

In Hong Kong, this material is distributed by JPMCB, Hong Kong branch. JPMCB, Hong Kong branch is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong. In Hong Kong, we will cease to use your personal data for our marketing purposes without charge if you so request. In Singapore, this material is distributed by JPMCB, Singapore branch. JPMCB, Singapore branch is regulated by the Monetary Authority of Singapore. Dealing and advisory services and discretionary investment management services are provided to you by JPMCB, Hong Kong/Singapore branch (as notified to you). Banking and custody services are provided to you by JPMCB Singapore Branch. The contents of this document have not been reviewed by any regulatory authority in Hong Kong, Singapore or any other jurisdictions. You are advised to exercise caution in relation to this document. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. For materials which constitute product advertisement under the Securities and Futures Act and the Financial Advisers Act, this advertisement has not been reviewed by the Monetary Authority of Singapore. JPMorgan Chase Bank, N.A., a national banking association chartered under the laws of the United States, and as a body corporate, its shareholder’s liability is limited.

With respect to countries in Latin America, the distribution of this material may be restricted in certain jurisdictions. We may offer and/or sell to you securities or other financial instruments which may not be registered under, and are not the subject of a public offering under, the securities or other financial regulatory laws of your home country. Such securities or instruments are offered and/or sold to you on a private basis only. Any communication by us to you regarding such securities or instruments, including without limitation the delivery of a prospectus, term sheet or other offering document, is not intended by us as an offer to sell or a solicitation of an offer to buy any securities or instruments in any jurisdiction in which such an offer or a solicitation is unlawful. Furthermore, such securities or instruments may be subject to certain regulatory and/or contractual restrictions on subsequent transfer by you, and you are solely responsible for ascertaining and complying with such restrictions. To the extent this content makes reference to a fund, the Fund may not be publicly offered in any Latin American country, without previous registration of such fund´s securities in compliance with the laws of the corresponding jurisdiction.

JPMorgan Chase Bank, N.A. (JPMCBNA) (ABN 43 074 112 011/AFS Licence No: 238367) is regulated by the Australian Securities and Investment Commission and the Australian Prudential Regulation Authority. Material provided by JPMCBNA in Australia is to “wholesale clients” only. For the purposes of this paragraph the term “wholesale client” has the meaning given in section 761G of the Corporations Act 2001 (Cth). Please inform us if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future.

JPMS is a registered foreign company (overseas) (ARBN 109293610) incorporated in Delaware, U.S.A. Under Australian financial services licensing requirements, carrying on a financial services business in Australia requires a financial service provider, such as J.P. Morgan Securities LLC (JPMS), to hold an Australian Financial Services Licence (AFSL), unless an exemption applies. JPMS is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) (Act) in respect of financial services it provides to you, and is regulated by the SEC, FINRA and CFTC under US laws, which differ from Australian laws. Material provided by JPMS in Australia is to “wholesale clients” only. The information provided in this material is not intended to be, and must not be, distributed or passed on, directly or indirectly, to any other class of persons in Australia. For the purposes of this paragraph the term “wholesale client” has the meaning given in section 761G of the Act. Please inform us immediately if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future.

This material has not been prepared specifically for Australian investors. It:

•      may contain references to dollar amounts which are not Australian dollars;

•      may contain financial information which is not prepared in accordance with Australian law or practices;

•      may not address risks associated with investment in foreign currency denominated investments; and

•      does not address Australian tax issues.

References to “J.P. Morgan” are to JPM, its subsidiaries and affiliates worldwide. “J.P. Morgan Private Bank” is the brand name for the private banking business conducted by JPM. This material is intended for your personal use and should not be circulated to or used by any other person, or duplicated for non-personal use, without our permission. If you have any questions or no longer wish to receive these communications, please contact your J.P. Morgan team.

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JPMorgan Chase Bank, N.A. and its affiliates (collectively "JPMCB") offer investment products, which may include bank-managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC ("JPMS"), a member of FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states. Please read the Legal Disclaimer in conjunction with these pages.

INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED

Bank deposit products, such as checking, savings and bank lending and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC. Not a commitment to lend. All extensions of credit are subject to credit approval.