Chegg prepares for $150 million IPO
Probably the biggest story of the week and in the top 5 of this year so far. Textbook renter turned student hub Chegg prepares for IPO, aiming to raise $150 million.
If you are into number crunching, you can read through the 206 pages of the S-1 or get the main points from Kara Swisher’s article on AllThingsD.
The interesting parts are the fact that since 2010 Chegg has only had losses and therefore probably needs the money according to Swisher. I find the list of risk factors mentioned in the S-1 pretty telling. I am probably going to write a post about that sometime this week.
In other related Chegg news, the company was in fourth place in terms of online advertising spending in July – August 2012 with 2,097,738 total impressions according to analysis by AdGooroo.
Education App Store Kindertown acquired by Demme Learning
Another week, another “acquihire” of a startup we covered in the past. Kindertown, an educational app store that tested, reviewed and rated educational apps to help parents with the growing choice on iTunes and the Google Play Store, was acquired by Demme Learning.
According to TechCrunch this was one of the cases in which the founders start talking about partnering up just to find out that their missions are aligned with the smaller partner joining the bigger one in the end. Last week we wrote about Hoot.Me joining Civitas Learning which sounds like a similar case.
I think we are going to see more of these acquisitions in the months to come as there is a growing group of edtech startups that went through one, or several, incubator or accelerator programs, raised a bit of seed money and are now at the point where they need to raise a Series A. If you want to dive deeper into this topic, I wrote about the edtech incubator scene on edcetera back in February.
Language Courses in Freefall in the UK
As you might know, I started my career in online education as a language coach back in late 2007. Dealing with this market for quite sometime I thought that language learning must have hit rock bottom in the UK ages ago. But according to the results of this year’s A-levels foreign language courses are still in freefall.
The only languages that are somewhat stable are Mandarin, Arabic and Italian whereas Spanish is the only language that saw a small increase in students.
I wrote quite some articles about the UK and its relationship with learning foreign languages on our sister site Fair Languages, but you can probably sum it up with the anti-European sentiments and rhetoric by the government and the general notion that “English is enough”.