[MUSIC] It gives me incredible pleasure to invite to our venue today John Smith. John is the co-founder and CEO of a wonderful little company called Pobble. And Pobble is addressing a couple of really interesting problems, I think it's fair to say. And I'm going to ask John to tell us about those. So John, first welcome. Fantastic to have you here. >> Thank you. >> So what are these problems you're addressing? >> So Pobble is really addressing a real major societal issue. Functional illiteracy. So did you know that 20% of the UK population is actually functionally illiterate? And this costs UK tax payers about 81 billion pounds annually, and direct costs for things like benefits, but also loss in income, income tax, and things like that. And so it's a major issue that is encountered by many countries around the world. But at a more kind of micro level teachers are the ones that are really tasked to solve this problem. But they're under resourced, they don't have quite the same sort of understanding of technology to be able to use technology to help to perhaps input into solving the issue. There's also things like the connection with parents is less strong than it used to be. And so really, Pobble is trying to address some of the key pain points in the classroom for the literacy teaching cycle, with the goal to be able to provide teachers with the ability to create more engaging and inspiring lessons for children. The goal is that if we can do that we'll get children excited about writing, and hopefully improve literacy attainment outcome. >> So clearly there's a problem here, both in the schools and in the society at large. Why are you the right person to be addressing this problem? >> The Pobble was actually founded by three teachers and myself. One of those teachers is my brother, hence the reason that I got involved. But really, two of the teachers, one a experienced deputy head teacher, who'd done a lot of technology implementation in the classroom, particularly in stem subjects, and also Henry, my brother, who was a literacy expert. He'd been a primary teacher for 15 years, literacy coordinator, and incredibly passionate about children's writing. Particularly hand-written work. And they got their heads together one day and Simon was saying how much of an impact some of the stem, subject based tools had had in his classroom, and Henry was saying, on the other hand, well why is there nothing that's really helping writing on the technology side? And he was saying, well, one particular issue is he had is that when they have to give an example for children in their class for what to write, he actually has to use a textbook with author written examples of model text. So these are written by- >> This is an author writing like a kid would write. >> Absolutely. So written by a 14 year old author in the style of an 8 year old. >> [LAUGH] >> I know, crazy. So you put it up on the visualizer, it goes up to the class, and he could just visibly see all of his class kind of lose interest. And so his idea was look, if we could get a database online of examples of children's writing, now Hammerton work from anywhere around the world, that they could just use free as teachers, this would be a super good resource. And so they started it. That was it. They created a WordPress blog. They took some photos of children's writing that kind of categorized them in a smart way, as a teacher would, and shared it with their network of local teachers, and they loved it. They were like well this is really helpful. I'm doing a lesson on Romans in the next few weeks, can I use these examples? And so that was really how it started so- >> So how did you get this thing started with no money? >> Well teachers are great at sharing things. They find a nice piece of best practice, and they'll just share for free, and they'll get it out to the community. So this was really the logic by which we started. We obviously assumed that this tool would be free, and that we would make it available for teachers. And because of that it grew very quickly. People shared it on Twitter, they shared it with their friends, with their other school colleagues, etc. And so it sort of grew as an online community very, very quickly. We've realized after a while that we were going to have to somehow generate some kind of business model around it. Since we didn't really feel confident yet to kind of address the Facebook, LinkedIn star things, where you build a huge user base first, and then figure out how to monetize. And because, bare in mind, these three teachers that started were all in their full time jobs. I was also working full time. And so we had no way of kind of making that leap into actually being in the business full time. So we did something that we knew would be very straightforward to sell to schools, we created a creative writing workshop, that we knew the head teachers would buy, because they already engage external sort of practitioners to come in and do these things. And we use that as the kind of conduit for getting Pobble into schools. So, one of our three teachers, who are all able to do this to a high level, went to a school. They basically delivered this creative writing workshop during the day, and over the course of that day they used tools from Pobble to kind of engage the children, to train the teachers, to show them how Pobble could be used in the classroom to help their writing lesson. And did the schools pay for these workshops that they delivered? >> As a school you might use a substitute teacher for sort of 200 pounds a day. And so all we were saying is hey rather than get a substitute teacher, bring Pobble in for the day, and we'll actually give you something even more value added. So we began very cheaply, pretty much pricing them at the price of substitute teachers. We very quickly realized when we were over run with bookings that we were able to price it a little bit higher so slowly the pricing came up. So again, there was no real science around the pricing to begin with, but we responded to customer demand, and that was how we were able to set appropriate pricing for those days. >> So how long did you get to go, and how far did it take you building the business on these customer funds? >> So I think we were running about six months, from when we first did our first launch day, before we figured out how we could create a online subscription, which was basically what we were hoping to get to eventually. But we needed to have that interaction with schools to understand what it was we needed to build, and how we would make them pay for it. Up to that point it was just a free tool that teachers could access to find people's writing. So really this whole process of getting out there and pretty much trumping the grounds, find a way into schools, lasted for really six months before we realize, now I think we know what we need to build on the platform site. In order that schools would pay for something that would, could then be as subscription and have a longer lasting revenue cycle for us. And that was the point when we started thinking at least about how we would build that, and how we would fund building that. >> Mm-hm. And at that point did you have to raise a little bit of capital in order to bring in development talent? [MUSIC]