Encantos' Learning App Will Be Powered by a Network of Creative Educator-Authors

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Encantos' Learning App Will Be Powered by a Network of Creative Educator-Authors

Companies that directly connect creators to users are decidedly in vogue, even in the colorful cuddly world of kids' content.

Encantos, the L.A.-based children's book publisher-turned-edtech startup, plans to include a creator platform on its new app that it will roll out this fall, chief executive Steven Wolfe Pereira told dot.LA.


"Where Roblox as a creator platform connects gamers and developers, we're going to be connecting creators and kids," Wolfe Pereira said.

The startup is taking a page from creator marketplaces set up by Roblox, Substack and Patreon — along with YouTube and virtually every social media platform trying to lure influencers to their apps.

In 2020, Encantos launched a subscription service that packages its games, puzzles and books tied to its growing roster of what it calls its "storyworlds." These include "Canticos," which features three baby chickens who help kids prepare for kindergarten and learn English and Spanish, "Tiny Travelers," which is focused on geography and culture and "Skeletitos," which features dancing skeletons who teach critical life skills like telling time.

The company's subscription revenue has since grown to surpass income from its retail products, and as Encantos' digital footprint grows, the company aims to pull in 95% of its sales from subscriptions, Wolfe Pereira said.

Encantos' Canticos app is part of that digital growth goal. It launched last fall as an early step toward creating a direct-to-consumer personalized learning platform that it plans to release this September. The company wants its Encantos app to become the "home for learning 21st century skills," Wolfe Pereira said.

In addition to Encantos' own storyworlds, the app will incorporate educational storytelling content from external creators, who will be paid based on how much user engagement their content produces. Exactly what that compensation will be based on hasn't been finalized, but it will likely depend on how much the users are learning and showing signs of having fun, Wolfe Pereira said.

Encantos said it's creating an approval process for creator submissions , which will entail a combination of human review and machine learning. No formal teacher certification will be required.

"You don't need to be a teacher to teach," Wolfe Pereira said.

And just as Netflix recommends what its users should watch next, so too will Encantos recommend what its users should learn next, based on data that informs the personalized learning experiences.

Encantos launched in 2015 after Wolfe Pereira, his wife and another couple grew frustrated by the publishing industry's lack of interest in bilingual books targeted at Latino children. The company's first storyworld was "Canticos," which went on to become a popular series for Nick Jr. after Encantos struck a deal in 2017 to license it to Nickelodeon.

Encantos has raised $8.5 million and last year brought on global tech executive Sol Trujillo as its board chairman. dot.LA Chairman Spencer Rascoff is an investor in the startup.

It is not yet clear how many creators will ultimately feed into the Encantos platform. Wolfe Pereira said he has begun lining up some celebrities and subject matter experts. But he is also looking forward to watching unexpected creators break through.

"We're gonna have story teachers from around the world put stuff onto this platform and we have no idea what is going to go viral," he said. "I know there's going to be this pent-up demand where you'll have all these people wanting to share and help kids learn something."

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How the 'Thrift Haul' Trend Boosted Secondhand Ecommerce Platforms

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
How the 'Thrift Haul' Trend Boosted Secondhand Ecommerce Platforms
Evan Xie

If you can believe it, it’s been more than a decade since rapper Macklemore extolled the virtues of thrift shopping in a viral music video. But while scouring the ranks of vintage clothing stores looking for the ultimate come-up may have waned in popularity since 2012, the online version of this activity is apparently thriving.

According to a new trend story from CNBC, interest in “reselling” platforms like Etsy-owned Depop and Poshmark has exploded in the years since the start of the COVID-19 pandemic and lockdown. In an article that spends a frankly surprising amount of time focused on sellers receiving death threats before concluding that they’re “not the norm,” the network cites the usual belt-tightening ecommerce suspects – housebound individuals doing more of their shopping online coupled with inflation woes and recession fears – as the causes behind the uptick.

As for data, there’s a survey from Depop themselves, finding that 53% of respondents in the UK are more inclined to shop secondhand as living costs continue to rise. Additional research from Advance Market Analytics confirms the trend, citing not just increased demand for cheap clothes but the pressing need for a sustainable alternative to recycling clothing materials at its core.

The major popularity of “thrift haul” videos across social media platforms like YouTube and TikTok has also boosted the visibility of vintage clothes shopping and hunting for buried treasures. Teenage TikToker Jacklyn Wells scores millions of views on her thrift haul videos, only to get routinely mass-accused of greed for ratching up the Depop resell prices for her coolest finds and discoveries. Nonetheless, viral clips like Wells’ have helped to embed secondhand shopping apps more generally within online fashion culture. Fashion and beauty magazine Hunger now features a regular list of the hottest items on the re-sale market, with a focus on how to use them to recreate hot runway looks.

As with a lot of consumer and technology trends, the sudden surge of interest in second-hand clothing retailers was only partly organic. According to The Drum, ecommerce apps Vinted, eBay, and Depop have collectively spent around $120 million on advertising throughout the last few years, promoting the recent vintage shopping boom and helping to normalize second-hand shopping. This includes conventional advertising, of course, but also deals with online influencers to post content like “thrift haul” videos, along with shoutouts for where to track down the best finds.

Reselling platforms have naturally responded to the increase in visibility with new features (as well as a predictable hike in transaction fees). Poshmark recently introduced livestreamed “Posh Shows” during which sellers can host auctions or provide deeper insight into their inventory. Depop, meanwhile, has introduced a “Make Offer” option to fully integrate the bartering and negotiation process into the app, rather than forcing buyers and sellers to text or Direct Message one another elsewhere. (The platform formerly had a comments section on product pages, but shut this option down after finding that it led to arguments, and wasn’t particularly helpful in making purchase decisions.)

Now that it’s clear there’s money to be made in online thrift stores, larger and more established brands and retailers are also pushing their way into the space. H&M and Target have both partnered with online thrift store ThredUp on featured collections of previously-worn clothing. A new “curated” resale collection from Tommy Hilfiger – featuring minorly damaged items that were returned to its retail stores – was developed and promoted through a partnership with Depop, which has also teamed with Kellogg’s on a line of Pop-Tarts-inspired wear. J.Crew is even bringing back its classic ‘80s Rollneck Sweater in a nod to the renewed interest in all things vintage.

Still, with any surge of popularity and visibility, there must also come an accompanying backlash. In a sharp editorial this week for Arizona University’s Daily Wildcat, thrift shopping enthusiast Luke Lawson makes the case that sites like Depop are “gentrifying fashion,” stripping communities of local thrift stores that provide a valuable public service, particularly for members of low-income communities. As well, UK tabloids are routinely filled with secondhand shopping horror stories these days, another evidence point as to their increased visibility among British consumers specifically, not to mention the general dangers of buying personal items from strangers you met over the internet.

How to Startup: Mission Acquisition

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

How to Startup: Mission Acquisition

Numbers don’t lie, but often they don’t tell the whole story. If you look at the facts and figures alone, launching a startup seems like a daunting enterprise. It seems like a miracle anyone makes it out the other side.

  • 90% of startups around the world fail.
  • On average, it takes startups 2-3 years to turn a profit. (Venture funded startups take far longer.)
  • Post-seed round, fewer than 10% of startups go on to successfully raise a Series A investment.
  • Less than 1% of startups go public.
  • A startup only has a .00006% chance of becoming a unicorn.

Ouch.

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From The Vault: VC Legend Bill Gurley On Startups, Venture Capital and Scaling

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

Bill Gurley in a blue suit
Bill Gurley

This interview was originally published on December of 2020, and was recorded at the inaugural dot.LA Summit held October 27th & 28th.

One of my longtime favorite episodes of Office Hours was a few years ago when famed venture capitalist Bill Gurley and I talked about marketplace-based companies, how work-from-home will continue to accelerate business opportunities and his thoughts on big tech and antitrust.

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