At the moment, the biggest VLE(Virtual Learning Environment), which is used by a large number of universities, is BlackBoard. And yet the product is poor by todays standards.
There are a lot of new startups that are concentrating on creating 'fashionable' companies, usually social networks of some kind, and yet the education sector is constantly being overlooked.
So perhaps a better question would be, are there any new startups addressing this problem?
Note: I also posted this question on Quora, but it got 1 reply which didn't really answer the question.