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London edtech startup pi-top sees layoffs after major contract loss

London-based edtech startup pi-top has cut a number of staff, TechCrunch has learned.

According to our sources, the company has reduced its headcount in recent weeks, with staff being told cuts are a result of restructuring as it seeks to implement a new strategy.

One source told us pi-top recently lost out on a large education contract.

Another source said sales at pi-top have been much lower than predicted — with all major bids being lost.

Pi-top confirmed to TechCrunch that it has let staff go, saying it has reduced headcount from 72 to 60 people across its offices in London, Austin and Shenzhen.

Our sources suggest the total number of layoffs could be up to a third. 

In a statement, pi-top told us:

pi-top has become one of the fastest growing ed-tech companies in the market in 4.5 years.  We have a unique vision to increase access to coding and technical education through project based learning to inspire a new generation of makers.

As part of this vision we built up our global team with a view to winning a particularly exciting national project in a developing nation, where we had a previous large scale successful implementation. We were disappointed this tender ultimately fell through due to economic factors in the region and have subsequently made the unfortunate but unavoidable decision to reduce our team size from 72 to 60 people across our offices in London, Austin and Shenzhen.

Moving forward we are focusing on our growth within the USA where we continue to enjoy widespread success. We are rolling out our new learning platform pi-top Further which will enable schools everywhere to access a world of content enhanced by practical hands-on project based learning outcomes. We have recently completed a successful Kickstarter campaign and we look forward to releasing our newest product pi-top [4].

We are also proud to have appointed Stanley Buchesky as our new Executive Chairman. Stanley brings a wealth of experience in the ed-tech sector and will be a great asset to our strategy going forward.

Pi-top sells hardware and software designed for educational use in schools. It’s one of a large number of edtech startups that have sought to tap into the popularity of the “learn to code” movement by piggybacking atop the (also British) low-cost Raspberry Pi microprocessor — which provides the computing power for all pi-top’s products.

Pi-top adds its own OS and additional education-focused software to the Pi, as well as proprietary cases — including a bright green laptop housing with a built-in rail for breadboarding electronics.

Its most recent product, the pi-top 4, which was announced back in January, looks intended to move the company away from its first focus on educational desktop computing to more modular and embeddable hardware hacking that could be used by schools to power a wider variety of robotics and electronics projects.

Despite raising $16M in VC funding just over a year ago, pi-top opted to run a crowdfunding campaign for the pi-top 4 — going on to raise almost $200,000 on Kickstarter from 521 backers.

Pi-top 4 backers have been told to expect the device to ship in November.

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pi-top’s latest edtech tool doubles down on maker culture

London-based edtech startup, pi-top, has unboxed a new flagship learn-to-code product, demoing the “go anywhere” Pi-powered computer at the Bett Show education fare in London today.

Discussing the product with TechCrunch ahead of launch, co-founder and CEO Jesse Lozano talked up the skills the company hopes students in the target 12-to-17 age range will develop and learn to apply by using sensor-based connected tech, powered by its new pi-top 4, to solve real world problems.

“When you get a pi-top 4 out of the box you’re going to start to learn how to code with it, you’re going to start to learn and understand electronic circuits, you’re going to understand sensors from our sensor library. Or components from our components library,” he told us. “So it’s not: ‘I’m going to learn how to create a robot that rolls around on wheels and doesn’t knock into things’.

“It’s more: ‘I’m going to learn how a motor works. I’m going to learn how a distance sensor works. I’m going to learn how to properly hook up power to these different sensors. I’m going to learn how to apply that knowledge… take those skills and [keep making stuff].”

The pi-top 4 is a modular computer that’s designed to be applicable, well, anywhere; up in the air, with the help of a drone attachment; powering a sensing weather balloon; acting as the brains for a rover style wheeled robot; or attached to sensors planted firmly in the ground to monitor local environmental conditions.

The startup was already dabbling in this area, via earlier products — such as a Pi-powered laptop that featured a built in rail for breadboarding electronics. But the pi-top 4 is a full step outside the usual computing box.

The device has a built-in mini OLED screen for displaying project info, along with an array of ports. It can be connected to and programmed via one of pi-top’s other Pi-powered computers, or any PC, Mac and Chromebook, with the company also saying it easily connects to existing screens, keyboards and mice. Versatility looks to be the name of the game for pi-top 4.

pi-top’s approach to computing and electronics is flexible and interoperable, meaning the pi-top 4 can be extended with standard electronics components — or even with Littlebits‘ style kits’ more manageable bits and bobs.

pi-top is also intending to sell a few accessories of its own (such as the drone add-on, pictured above) to help get kids’ creative project juices flowing — and has launched a range of accessories, cameras, motors and sensors to “allow creators of all ages to start learning by making straight out of the box”.

But Lozano emphasizes its platform play is about reaching out to a wider world, not seeking to lock teachers and kids to buying proprietary hardware. (Which would be all but impossible, in any case, given the Raspberry Pi core.)

“It’s really about giving people that breadth of ability,” says Lozano, discussing the sensor-based skills he wants the product to foster. “As you go through these different projects you’re learning these specific skills but you also start to understand how they would apply to other projects.”

He mentions various maker projects the pi-top can be used to make, like a music synth or wheeled robot, but says the point isn’t making any specific connected thing; it’s encouraging kids to come up with project ideas of their own.

“Once that sort of veil has been pierced in students and in teachers we see some of the best stuff starts to be made. People make things that we had no idea they would integrate it into,” he tells us, pointing by way of example to a solar car project from a group of U.S. schoolkids. “These fifteen year olds are building solar cars and they’re racing them from Texas to California — and they’re using pi-tops to understand how their cars are performing to make better race decisions.”

pi-top’s new device is a modular programmable computer designed for maker projects

“What you’re really learning is the base skills,” he adds, with a gentle sideswipe at the flood of STEM toys now targeting parents’ wallets. “We want to teach you real skills. And we want you to be able to create projects that are real. That it’s not block-based coding. It’s not magnetized, clipped in this into that and all of a sudden you have something. It’s about teaching you how to really make things. And how the world actually works around you.”

The pi-top 4 starts at $199 for a foundation bundle which includes a Raspberry Pi 3B+,16GB SD card, power pack, along with a selection of sensors and add-on components for starter projects.

Additional educational bundles will also launch down the line, at a higher price, including more add ons, access to premium software and a full curriculum for educators to support budding makers, according to Lozano.

The startup has certainly come a long way from its founders’ first luridly green 3D printed laptop which caught our eye back in 2015. Today it employs more than 80 people globally, with offices in the UK, US and China, while its creative learning devices are in the hands of “hundreds of thousands” of schoolkids across more than 70 countries at this stage. And Lozano says they’re gunning to pass the million mark this year.

So while the ‘learn to code’ space has erupted into a riot of noise and color over the past half decade, with all sorts of connected playthings now competing for kids’ attention, and pestering parents with quasi-educational claims, pi-top has kept its head down and focused firmly on building a serious edtech business with STEM learning as its core focus, saving it from chasing fickle consumer fads, as Lozano tells it.

“Our relentless focus on real education is something that has differentiated us,” he responds, when asked how pi-top stands out in what’s now a very crowded marketplace. “The consumer market, as we’ve seen with other startups, it can be fickle. And trying to create a hit toy all the time — I’d rather leave that to Mattel… When you’re working with schools it’s not a fickle process.”

Part of that focus includes supporting educators to acquire the necessary skills themselves to be able to teach what’s always a fast-evolving area of study. So schools signing up to pi-top’s subscription product get support materials and guides, to help them create a maker space and understand all the ins and outs of the pi-top platform. It also provides a classroom management backend system that lets teachers track students’ progress.

“If you’re a teacher that has absolutely no experience in computer science or engineering or STEM based learning or making then you’re able to bring on the pi-top platform, learn with it and with your student, and when they’re ready they can create a computer science course — or something of that ilk — in their classroom,” says Lozano.

pi-top wants kids to use tech to tackle real-world problems

“As with all good things it takes time, and you need to build up a bank of experience. One of the things we’ve really focused on is giving teachers that ability to build up that bank of experience, through an after school club, or through a special lesson plan that they might do.

“For us it’s about augmenting that teacher and helping them become a great educator with tools and with resources. There’s some edtech stuff they want to replace the teacher — they want to make the teacher obsolete. I couldn’t disagree with that viewpoint more.”

“Why aren’t teachers just buying textbooks?” he adds. “It takes 24 months to publish a textbook. So how are you supposed to teach computer science with those technology-based skills with something that’s by design two years out of date?”

Last summer pi-top took in $16M in Series B funding, led by existing founders Hambro Perks and Committed Capital. It’s been using the financing to bring pi-top 4 to market while also investing heavily in its team over the past 18 months — expanding in-house expertise in designing learning products and selling in to the education sector via a number of hires. Including the former director of learning at Apple, Dr William Rankin.

The founders’ philosophy is to combine academic expertise in education with “excellence in engineering”. “We want the learning experience to be something we’re 100% confident in,” says Lozano. “You can go into pi-top and immediately start learning with our lesson plans and the kind of framework that we provide.”

“[W]e’ve unabashedly focused on… education. It is the pedagogy,” he adds. “It is the learning outcome that you’re going to get when you use the pi-top. So one of the big changes over the last 18 months is we’ve hired a world class education team. We have over 100 years of pedagogical experience on the team now producing an enormous amount of — we call them learning experience designers.”

He reckons that focus will stand pi-top in good stead as more educators turn their attention to how to arm their pupils with the techie skills of the future.

“There’s loads of competition but now the schools are looking they’re [asking] who’s the team behind the education outcome that you’re selling me?” he suggests. “And you know what if you don’t have a really strong education team then you’re seeing schools and districts become a lot more picky — because there is so much choice. And again that’s something I’m really excited about. Everybody’s always trying to do a commercial brand partnership deal. That’s just not something that we’ve focused on and I do really think that was a smart choice on our end.”

Lozano is also excited about a video the team has produced to promote the new product — which strikes a hip, urban note as pi-top seeks to inspire the next generation of makers.

“We really enjoy working in the education sector and I really, really enjoy helping teachers and schools deliver inspirational content and learning outcomes to their students,” he adds. “It’s genuinely a great reason to wake up in the morning.”

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Kano’s latest computer kit for kids doubles down on touch

Learn-to-code startup Kano, whose products aim to turn kids into digital makers, has taken the wraps off the latest incarnation of its build-it-yourself computer kit.

With the new flagship Kano is doubling down on touch interactions — urging kids to “make your own tablet”. The Computer Kit Touch packs a 10.1″ HD touchscreen, along with Kano’s now familiar bright orange wireless keyboard which comes with a built in trackpad.

While touch is becoming increasingly central to its products, Kano says the keyboard remains an important component of the product — supporting text-based coding apps which its platform also provides access to, as well as the more approachable drag-and-drop block-based coding systems that do really benefit from having a touchscreen to hand.

The kit, which Kano says is generally (but not exclusively) aimed at the 6-13 age range, is on sale from today, priced at $279.99 — via its website (Kano.me), as well as from selected retailers and e-tailers.

The Raspberry Pi powered computer is also getting increased storage capacity in this upgrade — of 16GB. But the main refresh is around updating Kano OS, Kano’s kid-friendly Pi topper, with expanded support for touch controls, according to founder Alex Klein .

Last year Kano combined touch and keyboard based interaction into a single product, the Computer Kit Complete — calling that a DIY laptop.

The 2018 refreshed version looks much the same, with enhancements generally behind the scenes and/or under the hood.

“The big moves this year are advancing the software and content ecosystem,” says Klein. “How it’s all integrated together.”

He points to another coding kit the team has up for pre-order, slated to ship next month — a co-branded Harry Potter gizmo in which kids get to build a motion-sensitive “coding wand” and use it to cook up their own digital spells, helped along by Kano’s software — adding: “With the Potter kit we’re bringing Kano code — to create a system, the ability to blend and change physics engines and sounds and particle systems — to tablets. So we’ve now got a touch-based interaction model for that e-product, as well as mouse and keyboard, and so we’ve brought that software system now to the Computer Kit Touch.

“You can code by dragging and dropping blocks with your fingers, you can paint and draw. You can change the pitch of a loop or a melody by running your fingers up and down and then using a change of a parameter mess with how quickly that melody changes, mess with the number of layers, you can make a beat or a loop using a touch-based digital audio workstation style X-Y plane. You can go into any one of our creative coding apps and pull in touch-based interactions, so instead of just using a mouse, a click and point, you can make an app that responds to swipes and taps, and different speeds, and in different locations.”

“On the touch kit itself there’s also a set of new content that demystifies how touchscreens work and peels back the layer of the screen and shows you what’s behind, and you’re kind of touching the intersection of the different copper wires and seeing what’s happening beneath,” he adds.

“There’s obviously a big hardware upgrade with the new ability to touch it, to take it with you. We’ve refined a lot of the components, we’ve improved the speed, the battery life. But really the core of it is this upgraded software that integrates with all the other kit.”

Talking of other kit, the learn-to-code space is now awash with quasi-educational gizmos, leaving parents in Western markets spoiled for choice of what to buy a budding coder.

Many more of these gizmos will be unboxed as we head into the holiday season. And while Kano was something of a startup pioneer here — a category creator, as Klein tells it — there’s now no shortage of tech for kids promising some kind of STEM-based educational benefit. So it’s facing an ever-growing gaggle of competition.

Kano’s strategy to stand out in an increasingly contested space is to fix on familiar elements, says Stein — flagging for example the popular game Minecraft — which runs on the Kano kit, and for which there’s a whole subsection of the Kano World community given over to hacking Minecraft.

And, well, aside from block-headed Minecraft characters it’s hard to find a character more familiar to children than the fictional wizard Harry Potter. So you can certainly see where Kano’s trying to get with the coding wand.

“We broke our first month pre-order target in one day,” he says of that forthcoming e-product (RRP ~$130). “There was massive coverage, massive traffic on our site, it was picked up all over the place and we’re very happy with the pre-orders so far. As are our retail partners.”

The Potter co-branding play is certainly Kano trying to make its products cast a wider spell by expanding the appeal of coding from nerdy makers to more mainstream child consumers. But how successful that will be remains to be seen. Not least because we’ve seen this sort of tactic elsewhere in this space.

Sphero, for example, is now rolling back the other way — shifting away from Star Wars co-branded bots to a serious education push focused on bringing STEM robotics to schools. (Although Kano would doubtless say a programmable bot that rolls is not the same as a fully fledged kit computer that can run all manner of apps, including familiar and fashionable stuff like Minecraft and YouTube.)

“We’re very pleased to see that this category that we created, with that Kickstarter campaign in 2013 — it’s become more than what some people initially feared it would be which was niche, maker ‘arcanery’; and it’s becoming a major consumer phenomenon,” he says. “This notion that people want to make their own technology, learn how to code and play in that way. And not just kids — people of all ages.”

On the hard sales front, Klein isn’t breaking out numbers for Potter kit pre-sales at this stage. But says the various incarnations of its main computer kit have shipped ~360,000 units since September 2014. So it’s not Lego (which has also moved into programmable kits) — but it’s not bad either.

In recent years Kano has also branched out into offering Internet of Things kits, previewing three code-your-own connected devices in 2016 — and launching Kickstarter campaigns to get the products to market.

It’s since shipped one (the Pixel kit) but the other two (a build-it-yourself camera kit and a DIY speaker) remain delayed — leaving crowdfunder backers waiting for their hardware.

Why the delay? Have Kano’s priorities shifted — perhaps because it’s focusing efforts on cobranded products (like the Potter wand) vs creating more of its own standalone devices?

“We are still committed to shipping the speaker kit, the camera kit,” Klein tells TechCrunch. “A big reason for [the delay] is not only the fact that the company is in a position now where we have mass distribution, we have great partners — perennially testing new product ideas — and we want to make sure that products are going to resonate with, not just a small group of people but many, many people, of many different age groups and interests before we release them.”

He also points out that any backers of the two devices who want refunds can get them in full.

Though he also says some are choosing to wait — adding that Kano remains committed to shipping the devices, and saying for those that do wait there will be a few extra bells and whistles than originally specced out in the crowdfunder campaign.

The delay itself looks like the market (and consumer tastes) moving quicker than Kano predicted — and so it finds itself wishing its products could deliver more than it originally planned (but without a wand to wave to instantly achieve that).

This is also a pitfall with previewing anything months or years ahead of time, of course. But the expense and complexity of building hardware makes crowdfunding platforms attractive — even for a relatively established brand like Kano.

“The delay is really unfortunate,” he adds. “We did say they would ship earlier but what we have done is we’ve offered any backer a full refund on the camera and the speaker if they don’t want to wait. But if they do wait they will receive incredible camera, incredible speaker. Both of them are going to benefit from the advancements made in low cost computing in the last year.

“The speaker as well is going to have elements that weren’t even part of the original campaign. On our side it’s critical that we get those products absolutely right and that they feel mass, and that they demystify not only coding and the Internet of Things, which was part of the original purpose, but in the case of the camera and the speaker there are elements that have come to the fore in more recent months like voice interaction and image recognition that we feel if our mandate is to demystify technology and we’re shipping a camera and a speaker… that’s kind of part of it. Make it perfect, make it of the moment. And for any backer who doesn’t want to wait for that, no problem at all — we’ll refund you 100%.”

Beyond reworking its approach with those perhaps overly ambitious connected devices, Kano has additional release plans in its pipeline — with Klein mentioning that additional co-branded products will be coming next year.

He says Kano is also eyeing expanding into more markets. “There’s a significant market for Kano even beyond our traditional leading position amongst 6-13 year olds in the US and the UK. There’s a really strong market for people who are beyond the US and the UK and we’re now at a scale where we can start really investing in these distribution and localization relationships that have come our way since year one,” he says.

And he at least entertains the idea of a future Kano device that does away with a keyboard entirely — and goes all in on touch — when we suggest it.

“Would we move to a place where we have no keyboard in a Kano computer? I think it’s very possible,” he says. “It might be a different form factor, it might be smaller, it might fit in your pocket, it might have connectivity — that kind of stuff.”

Which sort of sounds like Kano’s thinking about making a DIY smartphone. If so, you heard it here first.

The five and a half year old London-based startup is not yet profitable but Klein flags growth he dubs “fast enough” (noting it doubled sales year-over-year last year, a “trend” he says continued in the first half of this year), before adding: “It’s not impossible for us to get to profitability. We have a lot of optionality. But at the moment we are making investments — in software, in team — we have partner products coming out like Harry, we’ll have more coming out next year. So in terms of absolute positive EBITDA not yet but we are profitable on a units basis.”

Kano closed a $28M Series B last year — and has raised some $44.5M in all at this stage, according to Crunchbase. Is it raising more funding now? “I think any entrepreneur who is looking to do something big is always in some sense keeping an eye out for sources of capital,” replies Klein. “As well as sources of talent.”

He points by way of a connected aside to this study of C-suite execs, carried out by Stripe and Harris poll, which found that access to software developers is a bigger constraint than access to capital, saying: “I read that and I thought that that gap — between the 1% of 1% who can develop software or hardware and the rest of us — is exactly the challenge that Kano set out to solve from a consumer and education perspective.”

“In terms of fundraising we do get a lot of inbound, we have great investors at the moment,” he adds. “We do know that the scale of this particular challenge — which is demystify technology, become synonymous with learning to code and making your own computers — that requires significant support and we’ll be continuing to keep our eyes out as we grow.”

 

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