Company Overview –
FlipWord created a chrome extension that teaches language by integrating learning into everyday activities.
|Name: FlipWord||Minimum Raise: $50K|
|CEO: Thomas Reese||Maximum Raise: $500K|
|Company Founded: July 2015||Structure of Raise: Crowd Safe, 20% Discount|
|Location: Palo Alto, CA||Valuation: $5M Valuation Cap|
|Crowdfunding Portal: Republic||Minimum Investment: $20|
|Crowdfunding Link: https://republic.co/flipword|
|Positives||Risks and Reservations|
|6,000 beta users with 50% retention rate on free accounts||Currently the product is only available as a Chrome extension, Mobile app is targeted for release in 3 months.|
|$5B online language learning market||Pre-revenue startup|
|Founders previous experience includes Facebook and Amazon||Proposed business model where the paying customers are incentivized to cancel their subscription due to lack of activity. This could lead to a very high churn rate when monetized.|
Solves a common problem
|FlipWord is utilizing gamification which is a hot trend in the education market.|
|FlipWord is based in Palo Alto|
Language educators and app developers have been scrambling to increase the effectiveness of their lessons by making learning more fun. Knowledge fades and review habits don’t stick.
FlipWord integrates effortless language learning into web browsing. They have created a chrome extension (and soon mobile app) that intelligently and automatically replaces a few words with the language you want to learn on every English web page, as you casually browse.
Their next steps are to improve the learning system, connect learners, release a mobile app, and market experiments.
FlipWord plans to charge users only for the days they don’t use FlipWord. Users that use FlipWord daily receive a completely free experience. Each user subscription will renew on a monthly basis. By doing this they build a committed, consistent, and engaged user base.
- 6,000+ signed-up users for beta with over 50% user retention
- Top prize at the University of Illinois Urbana Champaign (UIUC) Cozad New Venture Competition
*Source: Company provided on crowdfunding campaign website
Senior Management Team
|Thomas Reese||Yinghua Yang|
|Position:||CEO, CTO||COO, CDO|
Both candidates are technical founders which is always a great benefit not having to rely on outside developers. Yinghua Yang adds additional credibility to the project with her background as a Masters Student pursuing her degree in Teaching English as a Second Language. Although it’s great to have technical founders, it would be more reassuring to have a core founder with business or CEO experience.
Industry: Language Industry
TAM (Total Addressable Market): $5B
*Souce: Portal Page, Pitch Deck
The online language learning industry does have some well-established competition, none have implemented technology or artificial intelligence to the extent that FlipWord has. The market is quite large enough to accommodate competition. Companies looking to make education more efficient are always highly encouraged and often benefit from grants that are available to help support research and development.
The FlipWord system intelligently selects the best words to replace in your browsing to improve comprehension and language retention. The competition uses random word selection which has proven to have less retention in language learning.
Revenue to date: $72
Revenue Last Fiscal Year: $72 (2016)
Previous Funds Raised: $0
Use of Funds
- Intermediary Fees
- Estimated Attorney Fees
- Estimated Accountant/Auditor Fees
- Campaign Marketing Expenses
- Research & Development
- Future Wages
- General Working Capital
The industry powerhouse Rosetta Stone has previously acquired new technology that aids in the language learning process. FlipWord could become an attractive acquisition target if they are able to generate enough users to show data added efficiency.
Recent Acquisitions in the Field
|Date||Company Acquired||Acquired By||Amount|
|Dec. 11, 2013||Tell Me More||Rosetta Stone||$28M|
|July 25, 2013||Lexia Learning Systems||Rosetta Stone||$22.5M|
|April 2, 2013||Livemocha||Rosetta Stone||$8.5M|
|April 25, 2012||GoGo Lingo||Rosetta Stone||Unknown|
Expert Opinion Summary
FlipWord has created a solution to a problem with a significant addressable market. While they do have 6,000 beta users, they have yet to monetize the platform and it’s unknown how many can be converted to paying customers. FlipWord is still very much in the proof of concept stage and true adoption levels hinder on the success of their upcoming mobile app. I think that success of FlipWord is highly dependent on their ability to execute the success of their future mobile app. I think it would also be highly beneficial for FlipWord to test and determine what percentage of free users they are able to convert to paid.
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