Speak Grows into a Unicorn, Used by 1 in 10 Koreans

The Silicon Valley-based edtech startup Speak has grown into a unicorn company with a valuation of $1 billion (approximately 1.4 trillion won) by targeting the Korean market as its first target. According to an EO Korea video, Speak's co-founder CEO Connor Zwick and CTO Andrew Hsu revealed the process of creating an app used by 1 in 10 Koreans and the strategic background for choosing the Korean market.

Strategy of Escaping the Silicon Valley 'Bubble' to Choose Korea as the First Market

The co-founders of Speak explained that although they are based in San Francisco, choosing Korea as their first market was very unusual. CEO Connor Zwick emphasized that one must distinguish between where the team is located (Ecosystem) and where to decide the first market (First Market). He stated, "San Francisco is a kind of 'Bubble'," adding, "In order to obtain real information from the actual world, it is very important to escape this bubble and receive external feedback." He also mentioned that many companies from Y Combinator stay in San Francisco while choosing a first market far away from San Francisco, adding that this distinction is important.

The reason Speak chose Korea as its first market lay in the specificity of the Korean market and the high motivation of learners. According to the participants, Korea was a very competitive market and possessed conditions that made it difficult to enter, such as being a market where growth might be stagnant. However, Speak stated, "We judged that while it might be harder in the short term, it is a market with a higher possibility of long-term success." In particular, they explained that the strong will of Korean learners regarding English study and their desire to find 'what actually works' provided the optimal environment to verify Speak's AI technology. Speak reported that through the Korean market, they learned the fundamental truth of who the learners are and the best way to support them.

Korean Learners' 'Fear of Making Mistakes' and Hyper-personalized Learning through AI

Through the Korean market, Speak was able to deeply understand the fundamental problems of language learning and the psychological characteristics of learners. The participant analyzed that due to the influence of the Korean education system, learners have a 'learned fear' of making mistakes. This psychological barrier becomes a 'trap' that prevents learners from growing when they aim for fluent English speaking. The participant explained that this phenomenon was a pattern that appeared much more widely than expected when expanding to other markets such as Japan later on.

To solve this problem, Speak provides a 'hyper-personalized learning experience' using AI. In the early stages, they focused on developing technology to accurately understand the strong accents of non-native speakers, through which they were able to complete the first version of the app. The participant mentioned, "The core solution for language learning is universal regardless of culture," and noted, "No matter which culture humans come from, the solution seems almost identical." In fact, the learning data and experience gained in Korea served as an important foundation for expanding into other markets such as Japan, Europe, and the United States, and became the basis for the core product working well in various markets.

The Direction of AI Technology to Solve 'Bloom's 2 Sigma Problem'

Speak's vision is expected to expand beyond language learning to support all forms of learning. This is connected to the attempt to solve the 'Bloom's 2 Sigma Problem' presented by Benjamin Bloom in the 1980s. According to Bloom's research, students who received 1:1 individual instruction showed achievement levels more than 2 standard deviations higher than students in a typical classroom of 30 people. This shows that 1:1 education can dramatically increase learning outcomes.

However, due to economic reasons, it is nearly impossible to assign a 1:1 teacher to every learner. Speak is looking for the role of AI at this very point. CEO Connor Zwick cited his own childhood experience as an example, mentioning how in the 5th grade, rather than making him follow rules, his teacher supported him by giving him textbooks to learn on his own and giving him extra points if he answered questions. He said such individualized education shows the power to change a student's life. Based on his own experience of entering university at age 12 and starting a doctoral program at age 16, he shared the philosophy that "everyone has the ability to learn 10 times faster than they think."

Speak believes that it is possible to provide an experience similar to this 1:1 education to everyone in the world through frontier AI models. The participant stated, "The goal is to use the power of AI to draw out human potential and make humans stronger." Speak conveyed its vision to create a world where anyone can receive the best 1:1 education through such technological approaches.