Building the Future of Learning: The GSB Impact Fund’s Education Investment Thesis

7 min readFeb 12, 2025

“Education is the foundation upon which innovation, equity, and opportunity are built.” — GSB Impact Fund Education Team

Written By:

K-12: Danielle Nguyen, Alexis Brown, Rohan Angadi
Higher Education: Dana Yeleussiz, Varun Vobilisetty
Lifelong Learning: Ekin Karamalak, Linda Zhang

Team Lead: Imren Johar

Edited By: Caroline Chen

Education is the foundation of opportunity, yet access to high-quality learning remains deeply uneven. Millions of students worldwide lack the resources, instruction, and support they need to reach their full potential. At the same time, rapid technological advancements, shifting workforce demands, and mental health challenges are reshaping the future of education.

As the GSB Impact Fund’s Education Team, we believe that technology-enabled, human-centered solutions can drive transformative change across all stages of learning — from K-12 to higher education and lifelong learning. Our investment thesis focuses on three critical areas where we see the most potential for scalable impact:

Equitable K-12 Education — Leveraging AI, personalized learning, and social-emotional development to ensure every child, regardless of background, has access to high-quality education.
Transformative Higher Education — Reimagining postsecondary education with skills-based learning models, AI-driven platforms, and mental health support to better prepare students for the future.
Lifelong Learning & the Future of Work — Investing in upskilling, reskilling, and digital entrepreneurship to equip individuals with the tools they need to thrive in a rapidly changing economy.

By investing in scalable, technology-driven education solutions, we aim to bridge learning gaps, empower educators, and enable a future in which every learner has access to the knowledge, skills, and opportunities they need to succeed.

K-12: Equitable Primary & Secondary Education Through Technology-Enabled, Human-Centered Solutions

Education is a lifelong journey, and its foundation is shaped by the quality of primary and secondary schooling. However, millions of students worldwide lack access to high-quality education, limiting their opportunities for upward mobility. AI and technology offer a transformative opportunity to bridge these gaps, particularly in emerging markets.

1. Personalized and Adaptive Learning

A student’s ability to learn should not be constrained by traditional literacy barriers. Personalized and adaptive learning solutions can reshape education by meeting students where they are — regardless of reading proficiency, learning style, or prior knowledge.

The Problem: Student engagement is in crisis. Only 45.7% of U.S. students report being engaged in school, down from 65% in 2018. Meanwhile, students with disabilities score 28 to 40 points lower than their peers, highlighting systemic inequities.
The Opportunity: AI-powered, multimodal learning platforms (audio, visual, kinesthetic) can break down accessibility barriers, particularly for early learners and under-resourced communities, such as in emerging markets.
The Investment Focus: Scalable, adaptive learning tools that personalize instruction and enable students to learn at their own pace, regardless of literacy level.

2. Social and Emotional Learning (SEL) for Holistic Development

Developing social and emotional competencies is critical for students’ overall success. Research shows that students in SEL programs see an 11 percentile point increase in academic performance.

The Problem: In 2023, 40% of U.S. high school students reported persistent feelings of sadness or hopelessness, and 20% seriously considered suicide, underscoring the urgent need for SEL support.
The Opportunity: Integrating SEL curricula and wraparound services into schools can improve both student well-being and academic success.
The Investment Focus: Tools and platforms that equip parents and teachers with SEL training, particularly for marginalized communities, fostering emotional resilience and a supportive learning environment.

3. Empowering Educators Through AI-Driven Tools

The COVID-19 pandemic accelerated learning losses, with global math scores declining by an average of seven months. Technology has emerged as a crucial tool to support educators in addressing these challenges to enhance curriculum delivery, classroom management, and student engagement.

The Problem: Teachers are overwhelmed by administrative burdens and the need to provide personalized instruction at scale.
The Opportunity: AI-driven tools can automate administrative tasks, generate real-time insights, and enhance personalized instruction, amplifying rather than replacing educators. Training teachers to effectively integrate AI into their practice will improve efficiency, enrich learning experiences, and help students regain lost academic ground.
The Investment Focus: Solutions that integrate AI into teaching practices, reducing burnout and improving student engagement and outcomes at scale

By investing in personalized learning, SEL integration, and AI-powered educator support, we aim to enhance equity, engagement, and efficiency in K-12 education. Scalable, tech-enabled solutions that prioritize student well-being, teacher empowerment, and adaptable learning models will help build a more inclusive, effective, and future-ready education system.

Higher Education: Transformative Learning for a Changing World

Higher education is rapidly evolving due to technological advancements, shifting student demographics, and changing workforce demands. Traditional degree programs are no longer the sole pathway to economic mobility, leading to a rise in skills-based learning, AI-driven platforms, and mental health support. By 2025, the global EdTech market is projected to reach $404 billion, reflecting a growing demand for accessible, flexible, and job-aligned education models.

To address these changes and ensure student success, we focus on three key investment areas:

1. Skills-Based and Flexible Learning Models

The traditional four-year degree model is no longer sufficient to prepare students for today’s rapidly changing workforce. Alternative education models — such as online courses, bootcamps, and micro-credentialing — are emerging as faster, more cost-effective ways to develop in-demand skills.

The Problem: The growing skills gap means employers increasingly prioritize skills over degrees — yet, many students still struggle to access relevant, workforce-aligned education.
The Opportunity: Flexible, skills-based learning platforms can bridge the gap between higher education and workforce demands, ensuring students acquire practical, job-ready skills.
The Investment Focus: Scalable EdTech platforms offering industry-aligned courses, bootcamps, and micro-credentialing that provide learners with pathways to economic mobility.

2. AI and Data-Driven Learning Platforms

Higher education institutions are increasingly turning to AI-driven platforms to enhance personalized learning experiences and improve student outcomes. AI and data analytics are powerful tools that can optimize instruction, improve retention, and provide tailored academic support to non-traditional and underserved learners.

The Problem: Many students — especially first-generation and non-traditional learners — struggle with retention and engagement, leading to lower completion rates.
The Opportunity: AI-powered learning tools can deliver personalized learning experiences, ensuring that students receive individualized support based on their needs and progress.
The Investment Focus: AI-driven EdTech platforms that use data analytics to personalize instruction, predict student success, and enhance learning outcomes at scale.

3. Mental Health and Well-Being Support

The pressure of higher education is at an all-time high, with students facing increasing mental health challenges that impact both academic performance and long-term success. Institutions are beginning to recognize the critical need for holistic student support, including mental health services, community-building initiatives, and well-being tools.

The Problem: 70% of students report increased stress levels, and many institutions lack adequate mental health support systems.
The Opportunity: Digital platforms that provide scalable, on-demand mental health support can help students stay engaged, build resilience, and succeed academically.
The Investment Focus: Scalable mental health and well-being solutions, including digital therapy platforms, community engagement tools, and AI-powered coaching systems.

By investing in skills-based education, AI-driven learning, and student well-being, we aim to create a higher education ecosystem that is accessible, equitable, and future-proof. Scalable platforms that demonstrate measurable student success and sustainable business models will be key drivers in shaping the next generation of higher learning.

Lifelong Learning: Bridging the Skills Gap for the Future of Work

The AI revolution is rapidly accelerating the skills gap, with 87% of executives citing skill shortages as a major business challenge. As automation and AI adoption reshape industries, many workers find themselves unprepared for new roles, and employers struggle to find talent with the necessary expertise. This has created an urgent need for upskilling and reskilling solutions that can help individuals and businesses adapt to the evolving workforce.

We see significant investment opportunities in lifelong learning solutions that ensure economic resilience and career adaptability:

1. The Rise of Skills-Based Hiring

The Problem: 76% of employers now prioritize skills over formal degrees, creating a shift toward competency-based hiring.
The Opportunity: AI-driven adaptive learning tools and skills assessments can democratize access to employment, reducing hiring biases.
The Investment Focus: Technology-driven skills verification and job-readiness platforms that match candidates with relevant roles through AI-driven assessments.

2. The Well-Being Imperative in Work and Learning

The Problem: 84% of employees report experiencing burnout, while 70% of students report rising stress levels due to workplace and education pressures.
The Opportunity: AI-driven coaching, digital therapy platforms, and mental health solutions can improve engagement, resilience, and productivity.
The Investment Focus: Scalable digital well-being tools that enhance workforce productivity and emotional resilience.

3. The Future of Work: Gig Economy and Digital Entrepreneurship

The Problem: Over 50% of Gen Z is engaged in freelance work, preferring flexible, multi-income careers over traditional employment.
The Opportunity: Digital platforms can equip gig workers with financial literacy, self-marketing, and business management expertise while accessing global job markets
The Investment Focus: Platforms that empower freelancers with education, financial and digital business management tools, and networking opportunities to support sustainable self-employment.

As industries evolve, adaptive learning ecosystems will be critical for career resilience. We are committed to investing in scalable, tech-driven solutions that foster a future-ready workforce.

Sources

Building the Future of Learning: The GSB Impact Fund’s Education Investment Thesis

K-12: Equitable Primary & Secondary Education Through Technology-Enabled, Human-Centered Solutions

Higher Education: Transformative Learning for a Changing World

Lifelong Learning: Bridging the Skills Gap for the Future of Work

Written by Stanford GSB Impact Fund

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