STEMscopes Summary Analysis is as follows:
THE POSITIVES
1) Defensible IP strategy -- It appears STEMscopes has investigated emerging market segments in the Ed Tech space as the IP strategy is tightly focussed, and started with Texas curriculum, but is now adapted to other states. This informs product features. With its recent closure of $10 million in series A funding by Owl Ventures in May 2016, and significant market/customer development, STEMscopes has achieved a significant product validation milestone.
2) Well differentiated product compared to two incumbents regarding feature set, pricing model, language localization, STEM focus, and NGSS readiness.
3) Customer acquisition experience -- leadership team has deep domain expertise in education/curricula and deep knowledge in school/district purchase process and distribution.
4) The leadership team has a solid track record in taking start-ups from bootstrap mode to highly profitable entities, and exit strategy.
5) STEMscopes has remained relatively lean, which gives it a distinct advantage in market responsiveness in that it can pivot course and adapt readily.
6) Currently, equity base appears to not be over-diluted, which presents ideal condition for investment, and maximizing return on investment.
Areas of Focus:
1) STEMscopes will need an aggressive market access strategy to displace the current market share of its peers. These distribution channels are difficult to disrupt, but with dedicated and aggressive market development plans, which typically require significant capital, a disruption is possible.
Recommendation:
STEMscopes represents a promising venture to invest in. With appropriate capital to fund growth, it is reasonable to expect significant revenue growth and disruption of current supply chain.
THE POSITIVES
1) Defensible IP strategy -- It appears STEMscopes has investigated emerging market segments in the Ed Tech space as the IP strategy is tightly focussed, and started with Texas curriculum, but is now adapted to other states. This informs product features. With its recent closure of $10 million in series A funding by Owl Ventures in May 2016, and significant market/customer development, STEMscopes has achieved a significant product validation milestone.
2) Well differentiated product compared to two incumbents regarding feature set, pricing model, language localization, STEM focus, and NGSS readiness.
3) Customer acquisition experience -- leadership team has deep domain expertise in education/curricula and deep knowledge in school/district purchase process and distribution.
4) The leadership team has a solid track record in taking start-ups from bootstrap mode to highly profitable entities, and exit strategy.
5) STEMscopes has remained relatively lean, which gives it a distinct advantage in market responsiveness in that it can pivot course and adapt readily.
6) Currently, equity base appears to not be over-diluted, which presents ideal condition for investment, and maximizing return on investment.
Areas of Focus:
1) STEMscopes will need an aggressive market access strategy to displace the current market share of its peers. These distribution channels are difficult to disrupt, but with dedicated and aggressive market development plans, which typically require significant capital, a disruption is possible.
Recommendation:
STEMscopes represents a promising venture to invest in. With appropriate capital to fund growth, it is reasonable to expect significant revenue growth and disruption of current supply chain.
REFLECTIONS:
Interestingly, I approached this project with no preset opinion as to which company I would recommend, as an analyst, as an investment option. I'm quite familiar with the space, but through my own due diligence and reflections, the positives and negatives unfolded. Initially, I was going to focus on BrainPOP, but then after researching each of the companies (to the extent that various pieces of information are available in the public domain), I was surprised when my objectivity pointed to STEMscopes. So, I went back through the website, and revised accordingly such that STEMscopes was the subject of this analysis versus what I had initially planned to be BrainPOP.
Also, it became very apparent that the newer company (STEMscopes) has likely deliberately positioned itself against the known deficiencies of others. Whereas, the incumbents are what they are -- so, as a result, are not necessarily cognizant of differentiating themselves from other players, such as STEMscopes.
Overall, a very useful and insightful Assignment. Forced me to tap into my own powers of objectivity!
Interestingly, I approached this project with no preset opinion as to which company I would recommend, as an analyst, as an investment option. I'm quite familiar with the space, but through my own due diligence and reflections, the positives and negatives unfolded. Initially, I was going to focus on BrainPOP, but then after researching each of the companies (to the extent that various pieces of information are available in the public domain), I was surprised when my objectivity pointed to STEMscopes. So, I went back through the website, and revised accordingly such that STEMscopes was the subject of this analysis versus what I had initially planned to be BrainPOP.
Also, it became very apparent that the newer company (STEMscopes) has likely deliberately positioned itself against the known deficiencies of others. Whereas, the incumbents are what they are -- so, as a result, are not necessarily cognizant of differentiating themselves from other players, such as STEMscopes.
Overall, a very useful and insightful Assignment. Forced me to tap into my own powers of objectivity!