The global language learning market is growing fast, with HolonIQ estimating that the direct to consumer segment of the sector alone will be worth $120 billion by 2025. Of course there are enormous opportunities elsewhere in the market, such as with employers and institutions. For language learning start-ups, this represents huge opportunities to work on solutions that benefit a global market that, for many reasons, remains focused to an extent on English as the predominant foreign language of choice, particularly in business settings.
Many companies have recognised and acted upon this opportunity – some present entirely new approaches and focus on individualised learning, while others seek to impact the enormous amount of language learning that still takes place in the traditional classroom setting. Some have successfully transitioned from using installed software to provide web and mobile-based solutions for a global audience. According to venture capital fund Brighteye Ventures’ analysis, these solutions can be categorised according to three main axis:
- Marketplace: Some solutions position themselves between learners and tutors and/or peers, who then undertake group or one-to-one lessons. These solutions rely on conventional revenue models such as subscriptions, listing fees and commissions, and require a human component to drive their uptake and impact.
- Career-Aligned Content: Other solutions focus on providing a language learning module combined with career-focused content. For users, the offering allows them to build their language skills while also improving soft skills that can be valuable in a particular industry or sector.
- Use of Artificial Intelligence (AI): Solutions that leverage AI differentiate by tailoring product use to individual users, starting out by recognising the user’s initial language level and where they need to focus their improvement and time on the product. Often, AI-enabled solutions focus on upskilling learners in as short a period as possible, particularly useful if the user’s needs are timebound, such as needing the skills before a trip or before starting a new role.
Brighteye Ventures’ analysis of the offerings in language learning helps the fund to better understand the space and where there are opportunities for new companies. Led by Managing Partner Alexander Latsis, Brighteye focuses its time on the ‘white’ spaces in which there are opportunities for new companies.
Via Brighteye, Mr Latsis is a Board Advisor at Tandem, a language learning app that adopts a peer-to-peer learning model. Users download the app and are reviewed before they can join conversations and meet other users – once their application is accepted, they can find a language exchange partner using several filters. Together, the pair can start learning by texting, making audio and video calls, or sending/receiving voice notes, while the app provides correction and translation tools to ensure accuracy and help users progress.
What the Future Holds
Even with advanced software, machines can’t do the learning for you! Learning a new language takes time. Accordingly, investors like Alex believe that language learning solutions must find ways to motivate users for sustained, long-term usage. A key way that solutions can promote this ‘stickiness’ is by leveraging the human desire to connect, which is why many start-ups opt against technology-only solutions and instead for a combination of adaptive solutions with coaching (either one-to-one, or one-to-many). This human interaction plays a key role in helping people improve their confidence and fluency in a new language. This kind of engagement taps into and amplifies an individual’s emotional and social senses and helps them feel part of a community, all striving for the same objective, which here is improving their language skills.
This combination of adaptive technology and person-to-person coaching represents the best of both worlds. Peer-centred solutions cannot offer personalised learning to users. Where technology could be seen as impartial, tutors or peers can struggle to make accurate assessments of progress and miss opportunities to provide valuable feedback and help learners define gaps in their knowledge and next steps.
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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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