The education technology (edtech) sector has exploded with startups promising transformative solutions: thousands of students enrolled, life-changing job placements, and millions in venture capital (VC) funding. Press releases tout staggering success stories, yet many of these companies remain unknown to the broader public. Are these claims grounded in reality, or are they carefully crafted narratives designed to attract more funding and lure unsuspecting students?

The Edtech Boom

The edtech industry has seen unprecedented growth, with global investments reaching $21 billion some time back. Startups claim to democratize education, offering affordable courses, job-ready skills, and direct pipelines to high-paying careers. However, beneath the glossy marketing, some companies exaggerate their impact or engage in outright deception to inflate their valuations and secure funding. While not all edtech startups are fraudulent, the lack of regulation and oversight in the sector has allowed questionable practices to flourish.

How the Hype Machine Works

1. Exaggerated Claims: Many startups publish press releases boasting of massive enrollments or job placement rates without verifiable data. For example, a company might claim “25,000 students enrolled” by counting free sign-ups or incomplete registrations rather than active, paying participants.

2. Paid Media Campaigns: Some startups pay for sponsored articles in reputable outlets or collaborate with influencers to create a perception of legitimacy. These stories often lack scrutiny and amplify unverified success metrics.

3. Aggressive Marketing to Vulnerable Populations: Targeting low-income individuals, recent graduates, or career-switchers, these companies promise quick paths to lucrative jobs in tech or other high-demand fields. High-pressure sales tactics, such as limited-time discounts or fear-based messaging (“Don’t miss your chance!”), push students to enroll without due diligence.

4. Fundraising Through Hype: Startups use inflated metrics to pitch to VCs, who are eager to invest in the next big edtech unicorn. By showcasing “traction” (e.g., enrollment numbers or partnerships), they secure large funding rounds, even if their actual impact is minimal.

   
   

Some Ads Used to Influence Enrollments goes like this

These fictional advertisements inspired by the tactics used by some edtech startups to attract students. These ads reflect common strategies such as emotional appeals, exaggerated claims, and high-pressure tactics, designed to influence vulnerable audiences like recent graduates, career-switchers, or low-income individuals. Names and details are fabricated.

Ad 1: Visual

"Struggling to land your dream job? At SkillSurge Academy, we’ve helped 50,000 students just like you transform their lives! Learn coding, data science, or digital marketing in just 6 weeks and get hired by top companies like Google and Amazon. 90% of our graduates land six-figure jobs! Don’t wait—spots are filling fast! Enroll today and get 50% off for the next 24 hours only!”

Text on Screen:“Guaranteed Job or Your Money Back! *Terms apply. Limited seats. Act now!”

Click “Enroll Now” to secure your future! Link directs to a high-pressure sales page with a countdown timer.

Ad 2: Email Campaign (Targeting Career-Switchers)

Subject Line: Don’t Miss Your Chance to Change Your Life! 🚀

Body:Hi [First Name],

Tired of your dead-end job? At BrightPath Solutions, we’re revolutionizing education to help people like you break into high-paying tech careers. Our award-winning Data Science Bootcamp has a 95% job placement rate, with graduates earning up to $120,000/year!

Why choose us?✅ Learn from industry experts at Fortune 500 companies✅ Flexible payment plans (no upfront costs!)✅ 100% online, study at your own pace

But hurry—our next cohort starts in 48 hours, and spots are limited! Click below to reserve your seat and get a $500 scholarship if you enroll today.

Join Now and Change Your Future!

P.S. Don’t let this opportunity slip away. Your dream career is just one click away!

BrightPath Solutions: Trusted by 50,000+ students worldwide.

Ad 3: Sponsored Blog Post (Published on a Reputable Site)

Title: How FutureSkills Academy Is Empowering Thousands to Land Tech Jobs

Body:In today’s fast-paced world, staying ahead means having the right skills. That’s where FutureSkills Academy comes in. With over 90,000 students enrolled and partnerships with industry giants like Microsoft and IBM, FutureSkills is transforming lives through its cutting-edge coding and AI bootcamps.

Take Sarah, a single mom who went from retail to a $90,000/year tech job in just 4 months. “FutureSkills gave me the confidence and skills to succeed,” she says. With a 92% job placement rate and flexible financing options, it’s no wonder FutureSkills raised $20 million to expand its mission.

Ready to join the revolution? Sign up today and get 25% off your course! Don’t wait—your new career starts now.

Enroll Now

Sponsored by FutureSkills Academy.

Ad 4: Instagram Influencer Post (Targeting Low-Income Audiences)

Visual: A popular influencer sitting in a luxurious home office, holding a laptop with the TechTrend Institute logo.

Caption:“Want to earn BIG in tech? 💸 I just partnered with TechTrend Institute, and OMG, their courses are life-changing! 🙌 They’ve helped 100,000+ students land jobs at top companies, and their job guarantee means you’re set! No experience? No problem! Their 100% online programs make it easy to learn coding or cybersecurity in just weeks. Use my code TREND25 for 25% off—but hurry, it expires soon! 🚨 #TechTrendInstitute #DreamJob #CareerChange”

Call to Action:Swipe up to enroll! [Link to a landing page with a pop-up offering a “free career quiz” that collects personal data.]

Why These Ads Work

These ads leverage psychological triggers to influence enrollments:

• Urgency: Countdown timers, limited-time discounts, and “only a few spots left” create fear of missing out (FOMO).

• Aspirational Messaging: Promises of high salaries and dream jobs appeal to those seeking financial stability or social mobility.

• Social Proof: Inflated enrollment numbers, fake testimonials, and “partnerships” with big brands build credibility.

• Low Barrier to Entry: Flexible financing or “no upfront costs” hides predatory loan terms, making programs seem accessible.

Note: These ads are fictional but reflect real-world tactics observed in the edtech sector. Always research programs thoroughly, verify claims, and read financing terms before enrolling.

When Promises Fall Apart

RightFuture Academy, a startup launched in 2020, claimed to have enrolled 90,000 students in its coding bootcamp and secured $15 million in VC funding. Its website featured testimonials from “graduates” who landed jobs at top tech firms. Press releases in major outlets highlighted its “90% job placement rate.”

The Reality: Investigations revealed that RightFuture inflated its enrollment numbers by including free webinar attendees and non-paying users. The “graduates” in testimonials were either fabricated or paid to provide positive reviews. A former employee, Rakesh, shared that the company pressured instructors to pass students regardless of skill level to maintain high completion rates. Many graduates found themselves unemployable, as the curriculum lacked depth and industry relevance. Despite raising funds, RightFuture shut down in 2023, leaving students with worthless certificates and no recourse.

How Students Were Trapped: RightFuture targeted recent college graduates through social media ads promising “six-figure tech jobs in six months.” The company offered financing options with high interest rates, leaving students like Deepak, a 23-year-old enrollee, with $12,000 in debt and no job prospects.

SkillsUp Solutions, founded in 2019, marketed itself as a platform for upskilling workers in data science. It claimed partnerships with Fortune 500 companies and a “guaranteed job or your money back” policy. The startup raised $10 million in 2022, with articles praising its “innovative model.”

The Reality: The “partnerships” were superficial, often limited to one-off workshops or unverified endorsements. The job guarantee had strict fine print, requiring students to apply to hundreds of jobs and meet unrealistic performance criteria. Genilia, a single mother who enrolled, spent $8,000 on the program only to discover that the curriculum was outdated and the “career support” consisted of generic resume templates. When she requested a refund, SkillUp denied her claim, citing technicalities. The company is still operational but faces multiple lawsuits from former students.

How Students Were Trapped: SkillsUp used emotional marketing, targeting working-class individuals with promises of financial stability. Its sales team employed high-pressure tactics, urging prospects to enroll immediately or “miss out on life-changing opportunities.”

Exploitation Tactics: How Students and Investors Are Misled

1. Misleading Metrics: Startups often manipulate key performance indicators (KPIs) like enrollment, completion, or placement rates. For instance, a company might claim a “95% satisfaction rate” based on a small, cherry-picked sample of students.

2. Predatory Financing: Many edtech programs partner with private lenders to offer income-share agreements (ISAs) or loans with high interest rates. Students, unaware of the terms, end up in debt for courses that deliver little value.

3. Fake Testimonials and Partnerships: Fabricated success stories and exaggerated partnerships with reputable companies create a false sense of credibility.

4. Exploiting Regulatory Gaps: Unlike traditional colleges, many edtech startups operate outside strict accreditation or oversight, allowing them to make bold claims without accountability.

The Funding Game: How Startups Raise Millions

Venture capitalists are drawn to edtech’s potential for scale and impact. However, the pressure to show growth leads some startups to prioritize optics over substance:

• Pitch Deck Manipulation: Startups create polished pitch decks with inflated metrics, such as user growth or revenue projections, to secure funding. For example, a company might project $50 million in revenue based on unverified assumptions.

• Serial Fundraising: Some startups raise multiple rounds in quick succession, using each round to fuel marketing and hype rather than product development. This creates a cycle where the company must keep raising funds to stay afloat.

• Lack of Due Diligence: New VCs, eager to capitalize on edtech’s growth, may overlook red flags or fail to verify claims because some big VC has funded earlier round, enabling fraudulent or low-quality startups to thrive.

The Human Cost

Students are often the biggest victims. Take Maria, who enrolled in a $10,000 digital marketing course from an edtech startup promising “guaranteed freelance gigs.” After completing the program, she received no job support and discovered that the “certification” was unrecognized by employers. Maria, a first-generation college graduate, felt betrayed: “I thought this was my ticket to a better life, but it was just a scam.”

Investors, too, face losses when startups collapse. In 2023, a prominent edtech company that raised $25 million went bankrupt after failing to deliver on its promises, leaving investors with nothing.

What Should People Do?

• Research Thoroughly: Verify a startup’s claims by checking independent reviews, contacting alumni, and researching job placement data.

• Beware of Red Flags: High-pressure sales, vague job guarantees, or lack of transparent pricing are warning signs. Legitimate programs provide clear curricula and verified outcomes.

• Seek Accredited Alternatives: Consider programs offered by accredited institutions or well-established platforms, which often have better oversight.

• Understand Financing: Read the fine print on loans or ISAs. Consult a financial advisor to assess affordability and long-term implications.

• Strengthen Regulation: The Department of Education should extend oversight to non-accredited edtech programs, requiring transparency in outcomes and financial practices.

• Crack Down on Fraud: Authorised agencies should investigate deceptive marketing and penalize companies that mislead consumers.

• Support Legitimate Education: Increase funding for community colleges and public workforce programs to provide affordable, high-quality alternatives to predatory startups.

• Protect Student Data: Enforce stricter privacy laws to prevent edtech companies from misusing personal information for aggressive marketing.

New Entrepreneurs

• Focus on Impact: Build startups that prioritize student outcomes over hype. Transparent metrics, rigorous curricula, and genuine partnerships build trust and longevity.

• Ethical Fundraising: Be honest with investors about challenges and risks. Sustainable growth is more valuable than short-term funding spikes.

• Collaborate with Regulators: Work with policymakers to establish industry standards that protect students and foster innovation.

• Avoid the Get-Rich-Quick Trap: The edtech sector is not a shortcut to wealth. Entrepreneurs should aim to solve real problems, such as access to quality education or skills gaps, rather than chasing VC's millions.

Restoring Trust in Edtech

Not all edtech startups are fraudulent. Companies like Khan Academy, Duolingo have delivered measurable value to students. However, the industry’s reputation suffers when bad actors exploit vulnerable populations and erode trust.

To rebuild credibility, the edtech sector needs:

• Industry Standards: A coalition of edtech companies, educators, and regulators should develop benchmarks for transparency and accountability.

• Independent Audits: Third-party audits of enrollment, placement, and financial data can validate claims and expose fraud.

• Student-Centric Models: Programs should prioritize affordability, accessibility, and real-world outcomes over profit margins.

The edtech boom offers immense potential to transform education, but only if it prioritizes integrity over hype. Students deserve programs that deliver on their promises, investors deserve transparency, and entrepreneurs should strive to make a meaningful impact. By exposing deceptive practices and advocating for reform, we can ensure that edtech serves the greater good rather than exploiting those it claims to help.

If you’re considering an edtech program, do your homework. If you’re an entrepreneur, build with purpose. And if you’re a policymaker, act now to protect students and restore trust. The future of education depends on it.

-Chetan Desai