The business of language learning with Babbel co-founder Markus Witte | Found Podcast

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Company Overview

Babbel is a language learning platform that offers lessons, online classes, games, and podcasts to teach users new languages.
It was founded in 2007 by four co-founders who met while working in the music software industry.
The company initially focused on creating a usable and functional vocabulary trainer.
In 2009, Babbel adapted its product to work on mobile devices and introduced a subscription-based business model.

Fundraising was challenging for Babbel in the early days due to its location in Berlin and investors' unfamiliarity with the subscription model.
Babbel achieved cash flow positivity by 2011 with a small amount of funding and has remained lean by design, relying on revenue from users rather than investor capital.
Babbel's success began with coverage in TechCrunch in 2008, which led to a surge in users.

Babbel evolved from a vocabulary trainer to a comprehensive language learning platform by incorporating lesson plans, user feedback, and a multi-modal approach to learning.
The company recognized the importance of providing a safe environment for learners to practice speaking and gradually progress from app-based learning to real-world conversations.
AI has revolutionized Babbel by assisting teachers in lesson creation, understanding user needs, and enhancing speech recognition.

Marcus Dom, co-founder of Babbel, stepped down as CEO in late 2018 due to personal reasons and a desire for self-discovery.
The successor, who was initially hired as CMO, showed great potential and interest in the company's mission, making him the ideal choice to take over as CEO.
All four co-founders remain involved in the company as meaningful shareholders, demonstrating their continued alignment and trust in each other.

The decision to postpone the IPO in 2021 was made due to deteriorating market conditions, and the company is likely to remain private for the foreseeable future.
The company's success will be measured by the amount of learning success delivered to users through product evolution using AI and other innovations.
Maintaining and evolving the inclusive and diverse culture within the company is also a key priority.