What was Sarah Chou's professional background before starting Informed K12?

Before founding Informed K12, Sarah Chou worked in the nonprofit sector and for Providence Public Schools in Rhode Island, managing professional development. She sought ways to scale impact and solve systemic problems she observed.

Why did Informed K12 pivot from a QA/knowledge-sharing platform to a paperwork solution?

Their initial idea for a Q&A platform for teachers, likened to 'Quora for schools,' failed during a user study where teachers indicated they wouldn't use it due to practical constraints in their busy classroom schedules.

How did Informed K12 find its product-market fit in the education industry?

It took significant effort, including selling PowerPoint prototypes and targeting specific roles like Chief Business Officials. They learned that districts often sign many forms themselves, indicating a need for a solution they would directly procure.

What does 'doing things that don't scale' mean for a startup like Informed K12?

It means prioritizing customer relationships and direct support, even if it's not immediately scalable. Examples include personally calling customers when the site is down or spending extra time on onsite visits to understand unique district contexts.

How did Informed K12 secure its first major investor?

After an initial unsuccessful fundraising period, they focused on product development and pilot districts. Over a year later, an investor they had previously consulted reached out unexpectedly, leading to lunch and an immediate 'I'm in' decision.

What are the key challenges and trends Sarah Chou sees in school district administration today?

Districts are increasingly preparing for budget cuts and facing challenges in hiring and attracting Millennials. There's a strong eagerness to improve long-standing processes, particularly in the back office, making efficiency-focused solutions highly relevant.

Key Moments

Sarah Chou on Finding Product-Market Fit in the Education Industry - at YC Edtech Night

Y Combinator

Science & Technology4 min read26 min video

Nov 21, 2017|8,557 views|122|4

YC Y Combinator Edtech Sarah Chou Karen Lien Informed K12 Imagine K12 Education Tech Startup Talk Interview

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Key Moments

TL;DR

Sarah Chou (Informed K12) on pivoting to find product-market fit in K-12.

Key Insights

Initial product idea (a Q&A system for teachers) failed due to a lack of user adoption and understanding of teacher context.

Product-market fit in EdTech, particularly for K-12 districts, requires understanding internal workflows and decision-maker roles.

Early-stage EdTech startups should prioritize deeply understanding user needs and context through on-the-ground immersion.

Selling to K-12 districts involves building strong relationships and understanding their unique local contexts and bureaucratic processes.

Fundraising requires a clear, concise narrative and preparedness; sometimes, it takes longer than expected.

Efficiency and back-office automation are critical, often overlooked areas ripe for innovation in K-12 administration.

FROM NON-PROFIT TO EDTECH INNOVATION

Sarah Chou's career began in the non-profit sector, driven by a desire for impactful work that could also scale. Experiencing limitations in scaling impact, she transitioned to working within the Providence Public School system. There, she managed professional development for all staff, encountering significant inefficiencies in paper-based processes, such as sign-in sheets. This hands-on experience highlighted the challenges of tracking program effectiveness and teacher engagement, sparking her interest in technology as a means to scale impact and solve these systemic issues.

THE PIVOT: LEARNING FROM FAILURE

Chou and her co-founder Chen initially developed a Q&A platform akin to 'Quora for schools,' aiming to foster best practice sharing among teachers. Despite a year of development and belief in the idea, user studies revealed a critical flaw: teachers, often on their feet, lacked the time and inclination to actively participate in such a system. A particularly honest user group's direct feedback, captured on video, was a turning point, making it clear the initial concept wouldn't work in practice given the realities of the K-12 environment.

REDEFINING THE PROBLEM: FOCUS ON PAPERWORK

Following the honest, albeit painful, feedback that their first product was unusable, Chou and Chen had to pivot rapidly with only weeks left in their program. They immersed themselves by offering direct assistance to teachers and conducting extensive interviews to identify genuine pain points. This intense period of discovery led them to focus on the overwhelming amount of paperwork within school districts. This shift was strategic, moving from a teacher-facing platform to addressing the systemic, administrative back-office needs that were less visible but equally, if not more, critical.

ACQUIRING EARLY CUSTOMERS AND SALES

Securing early customers for Informed K12 (formerly Chalk Schools) was a protracted process. The initial attempt to offer a permission slip solution for free did not gain significant traction, as teachers were hesitant to adopt a new app. Chou found success by selling pilot programs using a PowerPoint prototype, demonstrating the potential of their solution before it was fully built. A key challenge was identifying the correct buyer within the district; after demoing to many roles, they discovered that Chief Business Officials and Assistant Superintendents were the effective decision-makers, as they themselves signed numerous forms.

ACHIEVING PRODUCT-MARKET FIT AND REPEATABLE SALES

Product-market fit was not a single eureka moment but a gradual realization. Chou knew they had found it around late 2014 or early 2015 when their sales process became consistent and repeatable. This consistency meant they could approach specific individuals with a defined message and reliably land contracts. While they had raised some funds prior to this validation, the repeatable sales process solidified their market position, confirming that they had identified a significant need and a viable solution for K-12 administrative back-office operations.

BUILDING TRUST AND RELATIONSHIPS IN K-12

Informed K12 prioritizes building strong, relational trust with school leaders, recognizing the unique, long-term customer relationships in education. This involves deep dives into each district's specific context, as administrators often feel their challenges are unique. Chou emphasizes understanding local nuances and maintaining commitment, even if it means personal intervention, such as direct calls when systems encounter issues. For parents, trust is built on addressing privacy and security concerns transparently and early, acknowledging their detailed scrutiny of such policies.

THE FUNDRAISING JOURNEY AND STORYTELLING

Raising funds for Informed K12 was a lengthy process that required significant iteration. Initially unsuccessful in pitching, Chou and Chen realized their story became diluted as they tried to accommodate every investor's suggestion, expanding their deck significantly. They paused fundraising to focus on product development and pilot programs. Over a year later, an investor they had previously consulted reached out, leading to a successful lunch meeting where they presented a concise, well-rehearsed ten-point narrative of their company. This success was attributed to preparedness, networking, and fortunate timing.

FUTURE OF EDTECH: EFFICIENCY AND BACK-OFFICE NEEDS

Chou remains focused on the efficiency and automation of back-office operations within K-12 systems. She observes that many districts are bracing for budget cuts and are eager to improve processes. Attracting and retaining talent, particularly Millennials, is another significant HR-related challenge. The industry is ripe for innovation in areas that have long operated with outdated methods. Chou anticipates continued growth and development in EdTech solutions that enhance administrative efficiency, driven by the ongoing need to do more with less.

Mentioned in This Episode

●Software & Apps

●Organizations

●Concepts

●People Referenced

Common Questions

Informed K12 is a company that helps school systems, primarily district offices, move their paperwork processes online. They started with things like permission slips and now handle internal district forms for reimbursements, travel, and more.