Novakid Secures $35M to Revolutionize Online English Education for Kids

The Importance of Language Immersion

Achieving fluency in a language that isn't your native tongue often necessitates language immersion as a key component of the learning journey. Being consistently surrounded by native speakers significantly aids in refining pronunciation, grasping contextual nuances, and, crucially, building self-assurance.

However, what options are available for an eight-year-old child residing in Spain who is studying English and lacks the opportunity for a summer trip to the United States?

Introducing Novakid: Virtual English Immersion

Novakid, established by Maxim Azarov, presents itself as a viable alternative. This San Francisco-based edtech startup delivers entirely virtual English language immersion experiences for children aged four to twelve, integrating live tutoring with engaging gamified elements.

Following a successful $4.25 million Series A funding round in December, Novakid has announced a new $35 million Series B financing round. This round was spearheaded by Owl Ventures and Goodwater Capital, with participation from existing investors, including PortfoLion, LearnStart, TMT Investments, Xploration Capital, LETA Capital, and BonAngels.

Rapid Growth and Expansion Plans

This capital raise is a direct response to the company’s strong performance this year. Novakid has experienced a 350% year-over-year increase in its active client base, now exceeding 50,000 paying students. The funds will be allocated to expanding access to its learning tools and facilitating Novakid’s entry into new international markets with substantial populations eager to learn English.

The company’s approach is founded on two core principles: the ability to immerse young learners in the English language on a large scale, and the creation of a genuinely enjoyable learning experience.

The Novakid Learning Experience

Upon registration, users are paired with one of Novakid’s 2,000 live tutors for their initial class. These tutors are required to be native English speakers holding a Bachelor's degree or equivalent, along with an internationally recognized teaching certification such as DELTA, CELTA, TESOL, or TEFL.

“It’s fundamentally important, even from a psychological standpoint, to begin actively listening to the language and interacting with a live instructor, thereby diminishing the fear of misunderstanding,” Azarov explained. The company aims to replicate the natural conditions under which a child typically acquires their first language.

During classes, tutors exclusively use English, and students are encouraged to reciprocate, gradually building confidence through practice and accepting occasional errors. While live, video-based classes are central to Novakid’s offering, Azarov emphasized that simply providing access to a teacher isn’t the company’s primary value proposition.

“Many competitors simply offer remote access to teachers, eliminating the need for travel and expanding selection,” he stated. “However, when considering the broader industry – companies like Oxford, Cambridge, and Pearson that provide language learning content – their products are often inadequate and ineffective.” Consequently, Novakid dedicates significant resources to developing a curriculum that is both effective and visually appealing, incorporating gamified elements.

Gamification and Curriculum Design

Gamified content is integrated both within and outside of live classes. Instructors might lead students on virtual reality tours of iconic landmarks and museums to reinforce vocabulary. Self-paced learning could involve a multiplayer “competition” where students answer questions against the clock for a higher score. Novakid maintains a dedicated team focused solely on game design and development.

Student engagement is demonstrably high. Novakid users dedicate approximately two-thirds of their time to interacting with tutors and one-third to utilizing the company’s self-paced content. The company intends to shift this balance, as students are increasingly engaging with asynchronous materials focused on grammar and vocabulary, reserving live tutoring for more complex skills like speaking and conversation.

Maintaining Motivation and Differentiation

A key challenge in scaling a language learning business is sustaining user motivation. Gamification aids engagement, but Novakid’s young clientele may be prone to churn compared to adult learners, due to shifting priorities. Azarov believes that focusing specifically on children provides a competitive advantage.

“A more focused approach fosters stronger brand recognition,” he said. “The way children learn languages differs significantly from how adults do, and I believe generalist providers who attempt ‘everything for everyone’ will struggle to match our effectiveness.” Duolingo’s recent launch of Duolingo ABC, a free English literacy app, demonstrates a similar focus. However, Novakid differentiates itself by offering a more comprehensive suite of services, including live learning and speaking practice.

Proven Results and Future Growth

The company’s strategy has already yielded positive results. Revenue reached $9 million in 2020, and is projected to be between $36 million and $45 million in 2021. While specific diversity metrics were not disclosed, the company plans to initiate a substantial recruitment drive. Azarov intends to add 200 employees to his current team of 300 over the next six months.