As a leading authority on the EdTech sector in Europe, the team at Brighteye Ventures frequently interacts with start-up founders in the space. Led by Managing Partner Alexander Latsis, the team has fielded many inquiries from portfolio companies and the community on what it’s like to transition an EdTech business to the United States, which is viewed by many as an attractive expansion market. To improve access to guidance on a US entry, Alex Latsis and Brighteye decided to host a panel of start-up founders who have successfully expanded to North America.
The panel discussion featured Felipe Sommer (Nearpod founder), Jamie Brooker (Kahoot! founder) and Luben Pampoulov (GSV partner). The session attracted many EdTech stakeholders interested in learning the secrets to successful entries.
Some of the critical insights shared by panellists include:
Research the Market
An EdTech VC, founder or stakeholder interested in the US market must take time to understand its nuances and dynamics, with a particular focus on desirable product tweaks and the best ways of reaching customers. In Kahoot!’s case, it opted to work with a US accelerator to help it build a foothold in the market and then consolidated its learnings in Norway, its home market.
According to Brooker, understanding the market means making the most of every opportunity to spend time with the target audience by attending EdTech events and working with local thought leaders. Kahoot!’s team visited schools across the US and attended education events to learn more about the dynamics of the education system. Kahoot! took time to understand how US EdTech companies achieved growth and sought to replicate relevant aspects, which involved working closely with and scaling through teachers in the country.
By adopting this strategy, Kahoot! has entrenched its game-based learning platform in the US – it’s now used in more than 50 percent of schools and has over a million corporate users.
Lean on Broadband and Device Penetration
Nearpod’s product offering, a mobile presentation tool that educators use to find, create and share interactive lessons, has significantly benefited from the broadening availability of broadband technology in the United States.
When Nearpod started, it had to provide classrooms with connected devices so teachers could use them and therefore Nearpod’s product – only 33 percent of US school districts had access to high-speed broadband. By 2018, this rate had grown to 88 percent of school districts, a significant rise that was mirrored by increased device access.
This combination of improved device and connectivity has helped Nearpod establish usage in over 15 percent of K-12 schools.
Have a Solid Distribution Model
The two companies focused on a bottom-up, teacher-driven distribution approach that eventually grew into an enterprise model that could attract corporates (for Kahoot!) and schools and districts (for Nearpod).
According to Sommer, positioning an EdTech start-up as a partner is a great way to gain the initial buy-in from users, and also makes it easier to enhance existing and build new products centred on their users.
Kahoot! took a similar approach by leaning on teachers and users as the source of input for scaling the product. The Kahoot! team also adopted an international mindset right from outset, making decisions with subsequent expansions in mind.
Don’t Overlook Exits
The third panellist on Brighteye’s discussion, Luben Pampoulov, advised founders to keep an eye on exit trends and potential suitors for their company when entering new markets. Pampoulov provided the example of General Assembly, a company he had invested in that was eventually sold to a Swiss human resources firm for a significant sum.
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Alexander Spiro Latsis, Nobrow Ltd. founder, has more than a decade of experience as an entrepreneur in media and technology businesses. He has been the Managing Partner of Brighteye Advisors since 2017, working closely with Brighteye’s other Partner, Ben Wirz.
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