Nearly four years after investing in Zoobean during a "Shark Tank" appearance, Mark Cuban gave the Arlington-based edtech startup advice that changed its course entirely.
He replied to an investor update email: “Why not just write skills for Alexa, rather than trying to figure out a completely new product?”
Zoobean makes a software platform called Beanstack, which helps educators and librarians operate reading challenges and receive insights about students' progress.
The company was prototyping its own hardware device to help families keep track of reading time without the distraction of a phone or computer. But Cuban pointed out a much more direct path, and Zoobean ran with it.
Now, the edtech platform is exploring ways to integrate Alexa into Beanstack so readers can track progress or set reminders. To do so, it received and investment from Amazon’s Alexa Fund — the e-commerce giant's venture fund focused on voice technologies and integrations with Alexa.
Along with the fund, Cuban re-invested in the platform, joined by EAI Technologies, Jo and Elizabeth Tango, Pamela Bass-Bookey and Harry Bookey, and Neil Jaffe of Booksource. Zoobean didn’t share the round’s size, and Amazon didn't share the size of its investment.
This isn't the Alexa Fund’s first edtech funding effort. Along with Zoobean, it just invested in STEM-learning platform Unruly Studios, and last year it pumped capital into voice-based software company Bamboo Learning and robotics education company Sphero.
“One of the reasons I’m so optimistic about voice technology is because it creates this communal experience where multiple people can share in the interaction,” Cuban said in a statement about the Alexa Fund investments. “Every startup founder should be looking at how voice services like Alexa fit into their business model, and it’s great to see companies like Zoobean and Unruly take that to heart."
The firm has rapidly developed its software and expanded its footprint following its 2014 launch and debut on Shark Tank (skip to 15:38). Today, Beanstack is licensed to over 1,200 public libraries and schools worldwide, and is likened to Fitbit for its rewards platform.
