Recently, VIPKID's large class business was officially upgraded to \"rice online school,\" and received $80 million in round A financing from Tencent, Sequoia China, Black Horse and other institutions, becoming the first financing case in K12 education in 2020. It is reported that rice online school is a special focus on Chinese primary school students live online classes, its English and math classes are also officially enrolled during the winter vacation.
In addition to the price of the people, rice school's latest cold spring class launched the \"normandy plan \": how much to pay, parents say, that is, every child completed a class, parents can determine the amount of the course according to the results of their children.
This is the same as the vipkid strategy of the year. In the early days, on the 1-to-1 track, VIPKID introduced a similar disruptive initiative - a free trial term policy of 12 classes in the first month - and a full refund for parents who were not satisfied. The free trial term hit the education market for a long time. Now, the one-time spoiler has come to the one-to-many big class circuit, or familiar taste.
This year's online education has a very important change: double teachers live broadcast big class into the mainstream mode. the speed of consumer acceptance is accelerated. In the summer of 2019, the promotion war further increased the penetration of the live broadcast mode, the rapid growth of different learning sections and different subjects, and the large class market has become the most mainstream online education model of K12. As of 2018, the number of students in the K12 stage in the country exceeded 100 million, with primary and junior high school students reaching 47 million, according to the National Bureau of Statistics. The online K12 penetration rate is expected to reach 23% by 2020, and the market size will exceed 100 billion.
From a one-to-one model to a one-to-many large class, is the VIPKID six years of accumulated experience and ability in the new field of one release. Rice online school is also the second growth curve of VIPKID. This curve can help VIPKID find greater revenue space in larger, faster-growing segments.
Zhai Jia, managing director of Sequoia Capital China Fund, believes that online education enters the second half, its core is demand-side and competitive-side dual-wheel drive. VIPKID has two advantages:
1.VIPKID deep ploughing for 6 years, the field of online education has a profound understanding and precipitation, more understanding of online behavior of users, relying on their own advantages to quickly gain user trust and support;
There is a strong and professional management team, I believe that under the leadership of the management team, the rice network school can take the user as the center, solve the user's pain point, create a learning closed loop combining quality and examination-oriented education, and lead the development of K12 online school.
In the rice online school launch site, Miwenjuan announced that the future will not consider large-scale advertising, will not participate in the K12 crazy \"arms race \". \"We'll save our users every penny and really let parents spend their money on learning.
Do not participate in the flow war, do not engage in arms race, rice school into the big class class track where the courage? After all, the smoke from the 2019 summer promotion war has not completely dissipated. According to media reports, learning and thinking of online schools, ape tutoring, homework help three institutions in this summer ads spent about ten million yuan a day.
Rice online school predecessor is VIPKID internal incubation of the large class \"bee school\" and small class SayABC products. After 600 days of polishing and three product iterations, the user recommendation rate has continued to rise from 55% in the early days of the line to 80%, reaching the industry's leading level.
In the teaching effect, the rice network school focuses on the primary school students group, and aims at the children's learning law targeted research and development. Take English class as an example, aiming at the status quo of the majority of Chinese \"dumb English \", the rice network school first launched the teaching mode of\" small class of foreign teachers in large classes in middle schools \". While ensuring the improvement of children's reading and writing ability, taking advantage of the scale advantage of VIPKID excellent foreign teachers, we can provide children with a small class of 1 to 6 classes every week to strengthen the children's listening and speaking training, and realize the improvement of children's ability of listening, speaking, reading and writing full closed loop.
The rice school also set up an academic committee led by the first Chinese chairman of TESOL and the chief academic officer of VIPKID, Liu Jun, to strictly guide and review the whole process of teaching and research and teaching in English courses, to ensure the teaching quality of each courseware, each class, so that the children can learn happily and learn efficiently.
In addition, the online rice school has teamed up with the Oxford University Press to obtain the Oxford University Press content authorization to use the Oxford Everybody Up classic in the English course of the online rice school. \"Everybody Up\" is a series of award-winning children's English textbooks from Oxford University Press, perfect for Chinese children's English learning skills and progress, through the further optimization and research and development of the rice online school teaching and research team, so that the curriculum in the words, grammar, topic and other dimensions of the comprehensive coverage of the new curriculum, comprehensive improvement of listening, speaking, reading and writing skills, so that children can live to learn, easy to play the test.
In the product experience, rice online school mathematics class is immersive teaching mode, using a better interactive, can let the teacher more effective transmission of information on the half-screen live broadcast, so called \"the closest offline real teaching scene\" online large class, so as to maximize the protection of children's learning results.
In terms of teachers, strict selection of teachers led by the top teachers graduated from the north of the Qing Dynasty, all teachers graduated from famous schools, teaching experience, an average of more than 8 years of teaching age, the average number of teaching students more than 10,000; rice school has also established a strict teacher training and lesson preparation mechanism, each teacher is more than 10 hours of class preparation.
\"We hope that through the rice online school math class, while improving children's academic performance, the system enhances the children's ability to calculate, symbol consciousness, spatial concept, geometric intuition and other nine major mathematical thinking ability, through the teacher vivid image explanation and inspiration, guide the children to actively think and explore, so that mathematics learning is beautiful and effective,\" said Xu Dezhi, head of mathematics products at the rice online school.
Since the summer of 2019, the k12 school's battle for students has become increasingly intense, with institutions advertising at the expense of users, and the cost of online education for customers. More than 10 online education companies in 2019 are expected to put in about $3-4 billion, reaching more than 600 million K12 students, and the cost of getting customers in positive classes is between $1,000-$3,500, according to 36 krypton and multi-whale research. Plus teachers and teaching materials and other costs, the total cost is about 5000-8000 yuan.
In the current various preferential policies, ape tutor introduced 49 yuan 14 classes, including the number of languages, and sent a full set of books; homework help launched 50 yuan 8 low price classes; palm selection launched 50 yuan 10 classes; zebra english launched 89 yuan 20 classes, including the full set of teaching materials. The launch of the \"Normandy Plan\" by the rice school for cold spring classes is particularly innovative. It is obvious that the rice network school to the flow of treasure, part of the pressure on its own flow pool.
At present, rice online school students 80% from the VIPKID existing students. In the past six months, VIPKID has acquired a large number of users for rice online schools by giving large class products to paying students. The data showed that customer satisfaction also rose to about 80 per cent from less than 60 per cent six months ago.
How big is the VIPKID's own student flow pool? It is understood that after six years of development, VIPKID has now accumulated more than 700000 paid students, in one-on-one field in the absolute leading position. Miwen Juan in the rice online school press conference mentioned that after entering the primary school stage, VIPKID students began to have multi-dimensional needs, including primary school English, mathematics and other fields of quality and examination-oriented ability of the overall improvement requirements.
VIPKID's own student flow pool, so that rice online school has a natural advantage. These stock users not only need to be urgent, but also have completed the habit cultivation of online learning, more trust in the VIPKID brand. Compared with other organizations must obtain customers through heavy money marketing means, rice online school through VIPKID direct drainage, shorten the marketing transformation path, customer cost advantage is obvious.
More than ten years ago, miwenjuan and uncle start a business together, do traditional english training for children. Years of first-line classroom experience gave Miwenjuan a deeper understanding of education, but also showed her the limitations of offline education and the possibility of \"Internet education \". Thus, in 2013, miwen juan chose to start again, in a small corner of the innovation workshop to create a vipkid,4-12 years old online children english education. From the first few students to several teachers, to the present more than 700000 paid students, tens of thousands of North American foreign teachers. According to the \"2018 online youth english education white paper \"released by the chinese academy of sciences data, in the 1-to-1 market, vipkid share reached%, occupying an absolute leading position.
In the process,\" help children insert the wings of language, let every child walk freely on the planet \", is the vision of Miwenjuan and the team has been unchanged. Miwenjuan believes that changing the way children around the world learn, the development of technology to provide us with more possibilities, and fundamentally, cannot be lost is to do the initial education. So far, miwenjuan and her team have been doing things around the beginning.
At the start-up, VIPKID crossed the entire hemisphere to recruit qualified teachers, the biggest challenge they faced at the time. Miwenjuan had to travel to the united states in person, to find teachers in cities such as portland and los angeles, to persuade them to join, and to post recruitment messages via facebook and twitter. And even in its infancy, VIPKID's screening of teachers is extremely demanding. VIPKID also provides teachers with a lot of support to help them understand the online teaching system, ideas and methods, how to interact with non-English-speaking children. Ensure that under the premise of completing the classroom teaching content, the teacher can play freely. For example, some teachers wear swimming goggles to teach the word swimming, and others wear masks to attend classes on Halloween.
After making the Beta product, VIPKID launched an experimental class plan to recruit 10 seed students a month, together with several teachers, to provide a three-month study course, the end of the study and the return of tuition fees. Most of the first students came from investors'children. VIPKID found two meeting rooms, children and teachers to stay in a separate room, observe their various reactions in class, constantly based on student feedback to adjust the product. By the end of 2014, VIPKID insisted on updating the three edition teaching content, two edition video platform, with 100 children and 10 professional teachers involved. For the first year and a half of doing VIPKID, VIPKID barely considered large-scale expansion, and everyone's energy was focused on polishing the product.
This dedication to education and products has made the VIPKID all the way to development, from 100 children to tens of thousands and hundreds of thousands of users, the number of foreign teachers has also climbed all the way to the top of the 1 to 1 English learning track. Today's VIPKID team maintains its commitment to education and to the product, and pours it into the research and development and iteration of the \"rice online school\" product, which is finally launched after 600 days of grinding.
As Miwenjuan said, whether it is the education of the century-old people, or the industry Internet technology to the good, need someone to sit on the bench, and VIPKID willing to be that person on the bench.
On the day of the launch, VIPKID announced that Tencent, Sequoia Capital China Fund, Black Horse and other organizations had joined forces to invest $80 million in round A.
From the financing situation, rice online school this harvest star investors: tencent and sequoia capital china fund, black horse vertical and horizontal. On the horizontal side, in the K12 online school track, rice online school set the industry's highest amount of A round of financing, the same round of A round, ape tutoring financing of 10 million yuan, job help for $25 million.
Vertically, both Tencent and Sequoia Capital China funds are senior shareholders in VIPKID, having previously been involved in multiple rounds of VIPKID financing. Tencent in particular, in October last year, just after adding a VIPKIDE round of $100 million, again heavy gold to its online school project. And throughout 2019, the online education industry has entered a capital winter, with every sum of money on the part of the capital. In addition to listed institutions, the number of large class track financing is limited, and mainly concentrated in the D or E round of mature enterprises. Industry analysts believe that taking the big money from star management at this node reflects investors'confidence in vipkid's accumulated vertical track development capabilities, while benefiting from its past one-on-one focus and refined operational capabilities.
However, VIPKID, the biggest courage of the rice online school hidden in the initial heart -\" help children insert the wings of language, let each child walk freely on the planet.\" The initial heart and values are the root of an enterprise's competitiveness, and also the growth code of VIPKID's development in six years.
On the 6th anniversary of VIPKID, Miwenjuan sent an internal letter. She wrote that VIPKID is still on the road to entrepreneurship and creation, and is far from stopping, relaxing and complacent. \"VIPKID has a team that truly'loves children and knows how to educate', we insist on doing the right thing, doing things the right way, we insist on the mission must be achieved, this is the next challenge we can start in the name of dreams,\" he said.