Better content and teachers have greater leverage than technology in education. The perfect example is Khan Academy, who are only now building applications for exercises based on their stellar content. If a startup did want to help, it could help great teachers leverage and amplify the power of existing tools to create and spread good content.

A few startups are trying to use games as a new way of teaching. There are lots of language learning sites, which are using peer-to-peer tools, but they seem more interested in plastering their sites with ads than actually educating people.