Investing in Apps for Kids: 5 Key Trends

Contents:

• Preschool education costs: statistics and trends
• Modern projects in preschool education

Preschool Education Spending: Statistics and Trends

In the United States, parents invest approximately $42 billion annually in preschool education, while government spending on this area is approximately $32 billion dollars. These data highlight the importance of families' personal investments in their children's early development. Given that early childhood education plays a key role in developing skills and knowledge, such financial investments become significant for children's futures. Investments in preschool education not only contribute to academic success but also foster the development of social skills, making them vital for successful social adaptation.

In Russia, spending on supplementary education doubled between 2017 and 2020. On average, families spend about 7,500 rubles per month on their children's education, including clubs, sections, private lessons, and educational apps. Interestingly, during the pandemic, spending by families with children decreased much less than that of childless families, underscoring the importance and priority of education for parents. This trend indicates that parents are willing to invest in their children's development, despite economic difficulties.

According to research, 87% of Russian families are investing in their children's supplementary education. Moreover, 83% of them consider such expenses a priority, emphasizing the importance of investing in the future of the younger generation. Investments in supplementary education open up new opportunities for children, developing their skills and increasing their competitiveness in the labor market.

Since the early 2010s, global investors have shown active interest in educational projects for preschoolers. Over the past ten years, venture capital investments in startups focused on children have demonstrated stable growth, maintaining their momentum even during the pandemic. This trend confirms the importance and potential of the children's educational services market, making it an attractive investment. Investors increasingly recognize the importance of early education and its impact on child development, which is facilitating further funding of innovative educational solutions.

According to EdSurge, from 2017 to 2020, American edtech projects targeting children under seven raised approximately $372 million. This represents 5.7% of the total venture capital invested in edtech startups in the US. These data highlight the growing interest in educational technology and its importance for early education.

Modern Projects in Preschool Education

Amid changes in financial flows caused by the COVID-19 pandemic, global investors remained active in 2020-2021, directing funds to innovative projects for children. These investments contributed to the development of new technologies and solutions aimed at improving the education, health, and leisure of children, which emphasizes the importance of investing in the future of the younger generation.

Brightwheel, founded in 2014, created an application for early education centers that simplifies interaction between parents and educational institutions. This convenient solution allows parents to monitor the schedule, meals, and activities of their children in kindergartens and clubs. Teachers, in turn, are able to effectively manage staff, track attendance, and generate reports. The Brightwheel application improves communication and enhances the quality of the educational process, making it an indispensable tool for modern early development centers.

In February 2021, Brightwheel raised $55 million in a Series C funding round led by investment firm Addition. Other investors in the round included Emerson Collective and GGV Capital. The funding values ​​Brightwheel at over $600 million.

Founded in 2012, Enuma specializes in developing game-based learning apps. Their popular products include Todo Math and Todo English, which together have been downloaded more than 8 million times worldwide. Todo Math is an interactive tool for learning core math concepts and is available in eight languages, offering more than 700 activities that help children effectively master math through play. Enuma strives to make learning fun and accessible, leveraging modern technology to increase user engagement.

Kitkit School is a key part of Enuma's portfolio, offering a comprehensive learning experience that incorporates games, books, and videos. The platform provides an interactive and engaging learning experience, promoting the development of skills and knowledge in children.

Enuma raised $18 million in venture funding as of April 2021. In 2019, the company won the Elon Musk-backed Global Learning XPRIZE. This achievement highlights Enuma's innovative approach to educational technology and its importance in learning.

Founded in 2013, Homer offers the innovative Learn with Homer app, which helps children develop reading, math, and emotional intelligence skills. The platform tailors content to a child's interests, featuring engaging topics such as princesses, dinosaurs, and space. This makes the learning process more engaging and effective, allowing children to study in a comfortable and entertaining environment.

At the end of 2020, Homer successfully raised $50 million from significant investors such as LEGO Ventures and Sesame Workshop. By April 2021, the total investment had increased to $93 million. This growth demonstrates the high interest in educational technology and innovative solutions for children.

Lingumi is an educational platform founded in 2015 in the UK that provides children with a unique opportunity to learn English in a convenient and accessible format. The app promotes faster learning compared to traditional courses through the use of interactive tasks and game elements. Lingumi makes the language learning process engaging and effective, allowing children to easily master new words and grammar structures.

During the pandemic, the number of Lingumi app users increased by 50%. This demonstrates its popularity and demand in the context of global change. Lingumi is available in 91 countries, highlighting its international reach and versatility.

In 2020, the startup Lingumi successfully raised €4.5 million in a Series A investment round. Key investors included North Summit Capital and LocalGlobe. This funding round was an important step for Lingumi, allowing the company to expand its capabilities and improve educational technologies in the field of language learning.

Since 2016, IntellectoKids has been creating educational apps for children aged three to seven, offering structured lessons that help them prepare for school. The program is fully aligned with US and UK national educational standards, ensuring high-quality learning. IntellectoKids focuses on developing the skills needed for successful learning, including reading, math, and creative thinking.

The apps offer a variety of text and video materials, as well as personalized lessons with a teacher and engaging animated films.

The startup successfully raised $3 million in Series A funding. Investors include venture capital firms Allrise Capital and Genesis Investments. The company's revenue has demonstrated impressive growth over the past year, increasing fivefold. This indicates the high potential of the business and its attractiveness to investors.