{"id":57154,"date":"2018-12-16T03:09:35","date_gmt":"2018-12-16T10:09:35","guid":{"rendered":"http:\/\/www.taterboy.com\/blog\/2018\/12\/disneys-invested-in-educational-gaming-app-kahoot-now-at-a-376m-valuation\/"},"modified":"2018-12-16T03:09:35","modified_gmt":"2018-12-16T10:09:35","slug":"disneys-invested-in-educational-gaming-app-kahoot-now-at-a-376m-valuation","status":"publish","type":"post","link":"https:\/\/www.taterboy.com\/blog\/2018\/12\/disneys-invested-in-educational-gaming-app-kahoot-now-at-a-376m-valuation\/","title":{"rendered":"Disney\u2019s invested in educational gaming app Kahoot, now at a $376M valuation"},"content":{"rendered":"

When Kahoot<\/a>, the startup that operates a popular platform for user-generated educational gaming, raised $15 million<\/a> in October of this year, we mentioned that Disney had a stake in the company by way of the Disney Accelerator, and it had an option to become a larger shareholder if it exercised its warrants.<\/p>\n

Now with some 60 million games on its platform, today Kahoot announced<\/a> that this has come to pass:\u00a0Disney is taking that option, working out to a four percent stake in the startup at a $376 million valuation, based on the current share price of 28 Norwegian kroner (shares of Kahoot are traded on the Norway OTC as an unlisted stock). It makes Disney\u2019s stake in the app worth about $15 million, although the actual value of the warrants Disney is exercising is smaller than this.<\/p>\n

Kahoot declined to comment for this story beyond the investment announcement posted on the exchange, but for some context, this is a nice bump up in Kahoot\u2019s valuation from October, when it was at $300 million. Other sizeable and notable investors in the company include Microsoft and Nordic investor Northzone (which has backed Spotify and other significant startups out of the region).<\/p>\n

On the part of Disney, it\u2019s not clear yet whether its Kahoot stake will lead to more Disney content on the platform, or if this is more of an arm\u2019s length financial backing. The two have already put Lucasfilm content on Kahoot and there may be more to come. The entertainment giant\u00a0has\u00a0made nearly 50 investments by way of its accelerator program. In some cases, it increases those to more significant holdings, as it has in the case of HQ Trivia<\/a>, Sphero<\/a>,\u00a0Epic Games <\/a>(the company behind Fortnite, a very different take on gaming compared to Kahoot), Samba TV and more.<\/p>\n

Disney has been dabbling in both gaming and education as vehicles to market its many brands, and also as salient businesses of their own \u2014 no surprise, given that one primary focus for it has been on younger consumers and their needs and interests.<\/p>\n

In some cases, it seems it may use strategic investments to do this, for example with Disney-themed nights<\/a> on HQ Trivia. Interestingly, although it doesn\u2019t appear that Disney invests in the Indian educational app Byju\u2019s \u2014 which itself just raised $300 million<\/a> \u2014 the educational app, which has been described as \u201cDisneyesque,\u201d teamed up with Disney in October to develop co-branded educational content, another sign of Disney\u2019s interest in the field.<\/p>\n

Kahoot has been around in one form or another since 2006 \u2014 originally as a gamified education concept called\u00a0Lecture Quiz<\/a>\u00a0before launching as Kahoot in 2013 \u2014 but has seen a sharp rise in users in the last few years on the back of strong growth in the U.S. \u2014 benefiting from a wider trend of educators creating content on mediums and platforms that they know students already use and love.<\/p>\n

Kahoot\u2019s last reported user numbers come from January, when it said it had\u00a070 million registrations, but its CEO and co-founder \u00c5smund Furuseth told TechCrunch in October that it was on track to pass 100 million by this month. Kahoot didn\u2019t release updated figures today, but my guess is that Kahoot has hit its target (maybe even passed it), and that is one reason Disney decided to exercise its investment option. <\/span><\/p>\n

Kahoot is not your average gaming company: some games are created in-house, but the majority of them are user-generated \u2014 \u201cKahoots\u201d in the company\u2019s parlance \u2014 created by the people setting the learning tasks or those trying to create a more entertaining way of remembering or learning something. These, in turn, become games that potentially anyone can use to learn something (hence the name).<\/span><\/p>\n

There have been about 60 million of these games created to date, a pretty massive amount considering this is educational content at the end of the day.<\/span><\/p>\n

Kahoot has developed its business along two avenues, with games for K-12 students and games for business users, building training and other professional development in a wrapper of gamification to engage workers more in the content.\u00a0<\/span><\/p>\n

In practice, about half the games in Kahoot\u2019s catalogue are available to the public and half are private, with the split roughly following the company\u2019s business model: games made for corporate purposes tend to be kept private, while the educational ones tend to be made publicly available. The business model also follows that split, with Kahoot\u2019s business users accounting for the majority of its revenue, too.<\/span><\/p>\n

Updated with more clarification on the investment.<\/em><\/p>\n

\"\"<\/p>\n

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When Kahoot, the startup that operates a popular platform for user-generated educational gaming, raised $15 million in October of this year, we mentioned that Disney had a stake in the company by way of the Disney Accelerator, and it had an option to become a larger shareholder if it exercised its warrants. Now with some… Read the full article…<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[174,377],"tags":[],"class_list":["post-57154","post","type-post","status-publish","format-standard","hentry","category-games-media","category-gaming"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t