Ivan Crewkov, an entrepreneur from Siberia, faced setbacks in the smart speaker market but unexpectedly discovered the immense potential of AI education through his daughter's experience learning English. His child-focused English education AI company, Buddy.ai, recently secured $11 million in seed funding led by BITKRAFT Ventures. The company's AI technology and business model, aimed at addressing pain points in children's English learning, have been recognized by investors.
Crewkov's entrepreneurial journey is quite dramatic. In 2014, he moved with his family to the United States to launch a crowdfunding campaign for his smart speaker project, Cubic.AI. However, a week before the Kickstarter launch, Amazon's Echo smart speaker dealt a devastating blow, forcing the project to be aborted. Yet, his daughter's interactions with an online tutor sparked an idea: to develop an AI conversational assistant to help children learn English. This led to the creation of Buddy.ai.
Image Source: Buddy.ai
Despite the team's background in voice AI technology, the development of Buddy.ai was not without challenges. The product's target audience of children required strict adherence to regulations like COPPA, extending the development cycle beyond the anticipated six months. Additionally, the AI system needed to understand English pronunciations from children with diverse linguistic backgrounds, posing higher technical demands.
Over seven years, Buddy.ai has achieved significant milestones, with nearly 55 million downloads and serving over 22 million students annually. The fundraising process involved negotiations with 186 investors, eventually partnering with BITKRAFT Ventures, known for its focus on the gaming industry, aligning with children's habit of treating Buddy as a game.
The company plans to invest all the funds in product development, including hiring a game design director and a user experience design director, expanding language options, and deepening collaborations with schools. Buddy.ai's focus on children's English education gives it a unique competitive edge against companies like Univerbal and Loora in the AI language education sector.
Crewkov is convinced that future education will be hybrid, with AI tutors providing strong support to teachers, especially in daily practice sessions. AI can compensate for the shortage of human teachers and offer more practical language learning opportunities. Buddy.ai's success not only showcases an entrepreneur's resilience in adversity but also highlights the significant potential of AI education in solving real-world problems.
