Our investment in Gamelearn
Learning while playing, easy to imagine but very hard to achieve. Gamelearn is a serious games company that combines Edtech and Online Games, bringing together the best know-how of these two industries. With four games developed so far that focus on improving relevant skills (negotiation, customer service, leadership and time management) of the employees of large corporations, the company has a content platform-based business model that aims to capture a portion of the budgets that Human Resources departments invest in traditional off-line training.
Behind the scenes
We are sincerely proud of this particular investment since it follows the path where we have historically felt more comfortable.
We met the founders Ibrahim and Mai back in 2013. At that time, although we liked the company and the space, we identified some issues (i.e., development time of a videogame, growth path, etc.) that made us decide not to invest, but rather keep a close eye on them.
However, we shared some ideas and continued our conversations with the founders on a regular basis, discussing new projects and ideas until we finally decided, almost 4 years later, that investing in Gamelearn was perfectly aligned with Kibo Ventures’ investment philosophy.
Why are we investing?
The company has all the ingredients that make a start-up attractive:
- Product is outstanding: you just need to try one of their games to understand why they are so successful amid HR departments. A clean design, with a very appealing layout and a solid argument is the perfect combination for a game to succeed. Take award winning Navieros for instance and feel like a 15th century venetian merchant while improving your negotiation skills.
- Users’ reviews: HR departments are overall impressed with the results when compared to traditional training courses; 94% of workforce that started the game finished it, vs. 30% using traditional methodologies, most of them using their smartphone during their free time, not during working hours.
- Economics: robust 100% y-o-y growth, with cohorts showing a very high recurrence and a strong LTV / CAC ratio have been key in the investment analysis.
- Team: highly motivated management team with the leadership, ambition and vision to build a global leader in the sector. Ibrahim Jabary (CEO), Maider Apraiz (Head of Sales) and Eduardo Monfort (CMO), have about 20 years of professional experience each and 14 years as entrepreneurs working together.
- Global approach: being global since day 1, and acknowledging the need for cross-selling and up-selling, Gamelearn is on the right path to become the leading serious games player for corporate training. The company generates revenues in more than 30 countries and has recently opened an office in Mexico, which sbecoming its second biggest market.
- Market: last but not least, the market is very attractive in terms of size, and looks ready for the entry of new players. Global investments in learning technology companies amounted to over $7.3 billion in 2016, setting a new record ($6.5 billion in 2015 and $2.4 billion raised in 2014).
With these ingredients, we foresee Gamelearn as the undisputed global leader in based-gamed learning for corporate training.