Knowledge Universe launches K12, an online school for kindergarten through high school

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

Knowledge Universe Learning Group (KULO, Menlo Park, CA, www.knowledgeu.com) has introduced plans for K12 (McLean, VA, www.k12.com) an Internet-based school for kindergarten through twelfth grade. William Bennett, former secretary of education, is heavily involved with the new venture. He holds the title of K12 Chairman, helps to guide product development and serves as a spokesperson. Ron Packard, ceo of K12 and vp of Knowledge Universe, says that Bennett spends about half of his time with the company. Rod Paige, a K12 director, was recently nominated as the new Secretary of Education.

Prior to having curriculum, the company is staking its reputation on its people. Walter Koetke, vp of instructional design, came to the new venture from one of its closest competitors, Child U, (Weston, FL, www.childu.com)--previously The Learning Odyssey. David M. Niemi, vp of testing and assessment, was assistant director of UCLA's Center for Research on Evaluation, Standards, and Student Testing and the Center for the Study of Evaluation. John Holdren, senior vp of content and curriculum, was previously vp and director of research and publications for the Core Knowledge Foundation. David Gelernter, a professor of computer science at Yale University, is chief technology advisor. Lowell Milken, who co-founded Knowledge Universe with his brother Michael Milken and Lawrence Ellison, is a director. Michael Milken and Ellison are not directly involved with the company.

Courses for kindergarten through first grade will first be available this fall. Packard anticipates adding three or four grades a year. K12 will offer a complete range of courses, including art, music and physical education in addition to academic subjects. Packard has, in fact, been surprised by especially strong interest in arts and music. This parental demand for supplemental education has likely been created by schools dropping these programs.

Revenues will come from tuition. Pricing has not yet been announced.

A Range of Markets

K12's marketing efforts will focus heavily on the estimated 1.6 to 1.8 million people in the home schooling market. Packard believes the company has an opportunity to build that number by attracting new home schoolers who would otherwise not be secure in their abilities to shape a curriculum for their children. Packard emphasizes that the company does not take a position on whether people should home school or not; but for those who wish to home school, he believes that K12 can elevate the quality of education.

Packard anticipates an even larger volume of parental buyers seeking supplementary education, perhaps a course in an academic area with which a child is having difficulty or the previously mentioned interest in arts and music. These buyers, of course, will purchase fewer products than home schoolers. Packard also points to the 250,000 Americans abroad as a potential customer base. While these people often want their children to experience the local schools, they often need supplemental education to ensure the child is on track with their US peers.

Schools, particularly private and charter schools, represent another market. Indeed, KULG already has potential clients under their umbrella. KULG is a minority investor in EdSolutions, Inc. (ESI, Nashville, TN, www.edsolutionsinc.com), which, in cooperation with local school districts, manages academically focused after-school programs, and this organization will pilot K12 materials.

KULG owns Knowledge Learning Corp. (San Rafael, CA, www.knowledgelearning.com), which provides early childhood education in more than 300 community-based and corporate sponsored centers in the U.S. KLC operates under various brand names, including Children's Discovery Centers and Knowledge Beginnings. Packard says these centers are likely to also pilot K12 curriculum, but that has not yet been defined.

KULG is a minority investor in Nobel Learning Communities (Media, PA, www.nobellearning.com), which operates a nationwide network of private preschools and elementary and middle schools. K12 has no special agreements with this organization, but Packard identifies this type of organization as a likely customer.

Partnership Opportunities

While the design of pedagogy is closed to outside companies, K12 is actively seeking strategic partners for the rest of their offerings. The company is, for example, interested in learning more about companies with student information systems, online assessment capabilities and distribution channels.

KULG supplied initial funding for K12. A new round of investment is likely to close in the coming months.