kano computing (“Kano”), the venture capital-backed company best known for its DIY computer kits and software for teaching coding and STEM skills to kids, is launching its creative software suite and online community platform as a stand-alone business.
The move comes as the UK company has been shifting its focus away from its roots of building your own PC in search of profitability and long-term sustainability.
Founded in London in 2013, Kano has brought several products to the market over the years designed to teach children the basics of computing. This includes their flagship Raspberry Pi-based modular PCs, as well as accessories like the Harry Potter Coding Kit packed with a physical magic wand that works on most platforms.
Kano’s Harry Potter Wand image credits: Kano Computing
Kano has raised about $45 million in funding over the years, from notable backers including Microsoft which worked with Kano to develop a Windows-based PC in 2019, which represents a remarkable departure from its Raspberry Pi roots. However, the company has apparently been struggling in recent years, shelving plans to bring Disney-branded products to market and announcing a round of layoffs as part of a “restructuring effort.”
At the end of his most recent fiscal year, Kano reported a pre-tax loss of £10.1 million ($12 million), an improvement on the previous year’s £16.8 million loss, but a loss nonetheless. And although it is still possible to buy some of its old products of yore via Amazonit’s clear that Kano has moved away from the products he became known for, toward a set of “Stem”-branded consumer devices that span audio and video.
STEM sells
A A little over a year ago, Kano teamed up with Kanye West to launch the Stem Player, a music device that allows users to isolate and mix individual elements of songs.
But with West displaying his anti-Semitic colors on more than one occasion, Kano revealed in november that he was cutting ties with the rapper, though he continues sell the stem player sans West’s involvement. And earlier this week, Kano introduced the Stem video projectorwhile mocking plans for all sorts of new products ranging from food to clothing.
With Kano heading in a new direction, this has left a core part of his business in limbo. kano world has been an integral part of the Kano offering since its inception: through an online account, users can create games, animations, and art, share them with the Kano community, remix other users’ work, participate in challenges, and more.
The deck was designed to bring a bit of fun and utility to his build-your-own computer kits, although it could be used independently of Kano’s hardware.
Code challenge in Kano World image credits: Kano world
going alone
Going forward, Kano World will go solo as an independent business entity led by the CEO Ollie Dotschwho was previously head of sales and education at Kano Computing.
Dotsch began her new role in August, as did Kano World. formally incorporated. According to a UK Chamber of Companies presentationKano World has three main shareholders, including Kano’s co-founder and CEO Alex Klein who owns a plurality of shares, Dotsch himself and Kano Computing.
In a Q&A with TechCrunch, Dotsch explained that after leading sales of Kano’s Windows-based PCs until their eventual depletion in early 2022, he raised the idea of expanding Kano World with CEO Klein and the board of directors. of the company, aware of the fact that Kano was changing his approach.
“Kano Computing is now working to grow the Stem business,” Dotsch said. “The Stem approach would have left Kano World with little to no budget, resources, or attention to turn it into the product and business that we believe it can and will be. Now, on our own, we can raise funds, build a team, and dedicate ourselves to the success of our vision of empowering the creative genius of all young people to create, not just consume.”
Kano World CEO Ollie Dotsch image credits: Kano World
For now, Kano World constitutes a team of just three and is fully funded by its three main shareholders, with plans underway to seek new funding “in the coming months.” And in addition to its equity stake, Kano Computing will also serve as a short-term incubator of sorts, offering office space at its East London headquarters.
“Removing Kano World from Kano Computing is complex and will take time, but we have already started incrementally and, upon completion, we leave both companies stronger than before,” Dotsch said.
If nothing else, Kano World strives to retain at least some of Kano’s original “builder and creator” ethos, albeit with a focus purely on the software side of things. Additionally, it can be seen as a positive move that Kano has chosen to give Kano World a chance to thrive on its own, when it might have been easier to let it slowly die inside Kano, or shut it down entirely.
“In this environment, it made more sense for Kano World to grow out of Kano Computing, rather than into[side]Kano Computing co-founder and CEO Alex Klein said in a statement. “Kano World has had many exciting iterations over the years, even attracting the attention of Mark Zuckerberg, who shared a post using the platform with their children. This spin-off is the next logical step to bring new creative and joyful experiences to young people around the world.”
As before, Kano World offers two of its three creative tools: Kano Code Y Make art — free, including access to some of the beginners challenges. Those who sign up for a premium subscription, which costs $10 per month or $100 per year, can access pixel movement and a broader range of challenges.
Without giving too much away, Dotsch said they are actively working on building out the social community side of the platform and its suite of creative software, with premium users getting access to new products first.
The new company Kano World intends to double its workforce to about six people by the end of February, according to Dotsch, with subsequent hires planned in creative and software development.
