Growth Spurt: Beansprout Networks' web site to offer off-computer curriculum for young children

Internet Strategies for Education Markets: The Heller Report, May, 2001

Beansprout Networks, a competitor of QualKids which ISEM first profiled in December, 1999, also offers resources and web sites to pediatricians, child care centers and parents. James Chung, ceo, says the company is further ahead in penetrating the market for pediatricians than for child care. Currently Beansprout lays claim to 20% of the nation's pediatricians and 3000 child care centers.

Chung says the company is expanding marketing activity and content for child care facilities. The company is testing a curriculum program for three, four and five year olds that, while delivered via Beansprout.net, is not a pure online program. It will, instead, provide on- and off-computer activities that can simultaneously involve the child, the child care center and the family. For example, teachers might post photos taken by children for the parents. They are not puffing the child in control of the keyboard.

Beansprout has moved away from e-commerce as a central revenue model to a more diversified revenue base. Sponsorships underwrite many of the site's resources, and the curriculum programs may be sponsored. The company is also pleased with revenue from their career job board. Chung says that hiring qualified employees is the number one challenge for child care centers. The site will be relaunching their e-commerce site with a new a partner which can not yet be announced.

Beansprout raised $21.25 million last summer, and had previously raised $6.75 million. Asked how the company has weathered the market and industry downturn, Chung says that a good amount of that cash remains in the bank and the company has tightened spending and scrutinized expenses. While Beansprout is not yet profitable, they do now have revenue. Chung says the company has also become smarter about partnering with other organizations and focusing on their key proficiencies. The company licenses their child care search and pediatric, search tools to other web sites, often branded to the other site. They will also seek licensing deals for their curriculum products.