Feb 21, 2018 · 21m · top-founders

942 0-50m Users Now Launching Paid SaaS Model at $120/yr To Gamify Learning

Eric Harrell · 12m spoken Nathan Latka · 6m spoken
0:00 / 0:00

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In this episode of The Top Entrepreneurs, host Nathan Latka interviews Kahoot CEO Erik Harrell about scaling the game-based learning platform to over 50 million users and executing its commercial transition into enterprise SaaS with the launch of Kahoot Plus.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 34.6% of the talking time here. How this is scored →

Nathan as informed peer 3.6 Guest teaching 2.9 Guest disagreement 2.1 Nathan pushing back 4.1
05100:0010:0020:000:49–4:50 · Nathan as informed peer 3/10 Introducing Erik Harrell and Guest Background Latka introduces Harrell's pedigree and probes how Kahoot monetizes its 50 million active users. He catches Harrell's phrasing about 'planning to make money' to clarify whether the company is currently generating revenue from its new Kahoot Plus tier.4:50–6:56 · Nathan as informed peer 2/10 Classroom Gameplay Mechanics and Venture Funding History Latka walks through user mechanics in classroom settings and jokes about students disliking homework features. Harrell explains their live classroom mode and recaps their $26.5M funding history.6:56–9:13 · Nathan as informed peer 3/10 Scaling Rapid User Growth and Raising Growth Capital Latka bluntly asks how Kahoot raised $26M prior to launching monetization while most founders struggle for seed funding. Harrell explains their hyper-growth from zero to 50 million users and the $20M raised across his first 12 months as CEO.9:15–11:56 · Nathan as informed peer 3/10 Measuring User Engagement and Demonstrating Enterprise ROI Harrell details user engagement metrics, comparing Kahoot's active 10-minute session format to passive video consumption. He connects enterprise training use cases directly to quantifiable ROI in sales and support departments.11:58–14:34 · Nathan as informed peer 4/10 Kahoot Plus SaaS Pricing and Enterprise Account Reach Latka explores SaaS packaging at $120/year and asks how many paid seats have closed during the first 40 to 50 days. Harrell remains coy on exact customer conversions, choosing instead to highlight their 500,000 corporate account domain footprint.14:34–16:49 · Nathan as informed peer 5/10 Soft Launch Strategy and Inbound Testing Rationale Latka challenges Harrell's go-to-market strategy, questioning why Kahoot is testing pricing exclusively on new inbound leads rather than selling directly to engaged enterprise users. Harrell defends the decision as a controlled test before rolling out to their primary user base.16:50–20:53 · Nathan as informed peer 5/10 Paid Subscription Milestones and Year-End Targets Latka repeatedly presses Harrell for a hard range on paid subscribers, citing Harrell's finance background when he offers vague reassurances. Harrell eventually commits to crossing 1,000 paid trainers before year-end before moving through the Famous Five.0:49–4:50 · Guest teaching 3/10 Introducing Erik Harrell and Guest Background Latka introduces Harrell's pedigree and probes how Kahoot monetizes its 50 million active users. He catches Harrell's phrasing about 'planning to make money' to clarify whether the company is currently generating revenue from its new Kahoot Plus tier.4:50–6:56 · Guest teaching 2/10 Classroom Gameplay Mechanics and Venture Funding History Latka walks through user mechanics in classroom settings and jokes about students disliking homework features. Harrell explains their live classroom mode and recaps their $26.5M funding history.6:56–9:13 · Guest teaching 4/10 Scaling Rapid User Growth and Raising Growth Capital Latka bluntly asks how Kahoot raised $26M prior to launching monetization while most founders struggle for seed funding. Harrell explains their hyper-growth from zero to 50 million users and the $20M raised across his first 12 months as CEO.9:15–11:56 · Guest teaching 3/10 Measuring User Engagement and Demonstrating Enterprise ROI Harrell details user engagement metrics, comparing Kahoot's active 10-minute session format to passive video consumption. He connects enterprise training use cases directly to quantifiable ROI in sales and support departments.11:58–14:34 · Guest teaching 3/10 Kahoot Plus SaaS Pricing and Enterprise Account Reach Latka explores SaaS packaging at $120/year and asks how many paid seats have closed during the first 40 to 50 days. Harrell remains coy on exact customer conversions, choosing instead to highlight their 500,000 corporate account domain footprint.14:34–16:49 · Guest teaching 3/10 Soft Launch Strategy and Inbound Testing Rationale Latka challenges Harrell's go-to-market strategy, questioning why Kahoot is testing pricing exclusively on new inbound leads rather than selling directly to engaged enterprise users. Harrell defends the decision as a controlled test before rolling out to their primary user base.16:50–20:53 · Guest teaching 2/10 Paid Subscription Milestones and Year-End Targets Latka repeatedly presses Harrell for a hard range on paid subscribers, citing Harrell's finance background when he offers vague reassurances. Harrell eventually commits to crossing 1,000 paid trainers before year-end before moving through the Famous Five.0:49–4:50 · Guest disagreement 1/10 Introducing Erik Harrell and Guest Background Latka introduces Harrell's pedigree and probes how Kahoot monetizes its 50 million active users. He catches Harrell's phrasing about 'planning to make money' to clarify whether the company is currently generating revenue from its new Kahoot Plus tier.4:50–6:56 · Guest disagreement 1/10 Classroom Gameplay Mechanics and Venture Funding History Latka walks through user mechanics in classroom settings and jokes about students disliking homework features. Harrell explains their live classroom mode and recaps their $26.5M funding history.6:56–9:13 · Guest disagreement 2/10 Scaling Rapid User Growth and Raising Growth Capital Latka bluntly asks how Kahoot raised $26M prior to launching monetization while most founders struggle for seed funding. Harrell explains their hyper-growth from zero to 50 million users and the $20M raised across his first 12 months as CEO.9:15–11:56 · Guest disagreement 1/10 Measuring User Engagement and Demonstrating Enterprise ROI Harrell details user engagement metrics, comparing Kahoot's active 10-minute session format to passive video consumption. He connects enterprise training use cases directly to quantifiable ROI in sales and support departments.11:58–14:34 · Guest disagreement 3/10 Kahoot Plus SaaS Pricing and Enterprise Account Reach Latka explores SaaS packaging at $120/year and asks how many paid seats have closed during the first 40 to 50 days. Harrell remains coy on exact customer conversions, choosing instead to highlight their 500,000 corporate account domain footprint.14:34–16:49 · Guest disagreement 3/10 Soft Launch Strategy and Inbound Testing Rationale Latka challenges Harrell's go-to-market strategy, questioning why Kahoot is testing pricing exclusively on new inbound leads rather than selling directly to engaged enterprise users. Harrell defends the decision as a controlled test before rolling out to their primary user base.16:50–20:53 · Guest disagreement 4/10 Paid Subscription Milestones and Year-End Targets Latka repeatedly presses Harrell for a hard range on paid subscribers, citing Harrell's finance background when he offers vague reassurances. Harrell eventually commits to crossing 1,000 paid trainers before year-end before moving through the Famous Five.0:49–4:50 · Nathan pushing back 3/10 Introducing Erik Harrell and Guest Background Latka introduces Harrell's pedigree and probes how Kahoot monetizes its 50 million active users. He catches Harrell's phrasing about 'planning to make money' to clarify whether the company is currently generating revenue from its new Kahoot Plus tier.4:50–6:56 · Nathan pushing back 2/10 Classroom Gameplay Mechanics and Venture Funding History Latka walks through user mechanics in classroom settings and jokes about students disliking homework features. Harrell explains their live classroom mode and recaps their $26.5M funding history.6:56–9:13 · Nathan pushing back 4/10 Scaling Rapid User Growth and Raising Growth Capital Latka bluntly asks how Kahoot raised $26M prior to launching monetization while most founders struggle for seed funding. Harrell explains their hyper-growth from zero to 50 million users and the $20M raised across his first 12 months as CEO.9:15–11:56 · Nathan pushing back 2/10 Measuring User Engagement and Demonstrating Enterprise ROI Harrell details user engagement metrics, comparing Kahoot's active 10-minute session format to passive video consumption. He connects enterprise training use cases directly to quantifiable ROI in sales and support departments.11:58–14:34 · Nathan pushing back 5/10 Kahoot Plus SaaS Pricing and Enterprise Account Reach Latka explores SaaS packaging at $120/year and asks how many paid seats have closed during the first 40 to 50 days. Harrell remains coy on exact customer conversions, choosing instead to highlight their 500,000 corporate account domain footprint.14:34–16:49 · Nathan pushing back 6/10 Soft Launch Strategy and Inbound Testing Rationale Latka challenges Harrell's go-to-market strategy, questioning why Kahoot is testing pricing exclusively on new inbound leads rather than selling directly to engaged enterprise users. Harrell defends the decision as a controlled test before rolling out to their primary user base.16:50–20:53 · Nathan pushing back 7/10 Paid Subscription Milestones and Year-End Targets Latka repeatedly presses Harrell for a hard range on paid subscribers, citing Harrell's finance background when he offers vague reassurances. Harrell eventually commits to crossing 1,000 paid trainers before year-end before moving through the Famous Five.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 50.5% · guest 49.5%0:00 · Nathan 50.5% · guest 49.5%3:00 · Nathan 23.8% · guest 76.2%3:00 · Nathan 23.8% · guest 76.2%6:00 · Nathan 16.6% · guest 83.4%6:00 · Nathan 16.6% · guest 83.4%9:00 · Nathan 39.6% · guest 60.4%9:00 · Nathan 39.6% · guest 60.4%12:00 · Nathan 37.9% · guest 62.1%12:00 · Nathan 37.9% · guest 62.1%15:00 · Nathan 35.1% · guest 64.9%15:00 · Nathan 35.1% · guest 64.9%18:00 · Nathan 26.9% · guest 73.1%18:00 · Nathan 26.9% · guest 73.1%21:00 · Nathan 98.5% · guest 1.5%21:00 · Nathan 98.5% · guest 1.5%
Sharpest disagreement ▶ 16:59 Harrell resists disclosing early conversion metrics

Harrell repeatedly stonewalls Latka's direct questions regarding paid trainer numbers, refusing to give specific numbers until cornered.

Hardest push from Nathan ▶ 17:14 Latka demands a numerical range for paid users

Latka rejects Harrell's vague claim of being 'off to a good start' by invoking Harrell's Wall Street pedigree and forcing him to provide concrete bounds.

Biggest teaching moment ▶ 7:17 Harrell explains viral growth velocity and capital strategy

Harrell outlines how Kahoot grew from zero to 50M users faster than Twitter, explaining how massive user acquisition justified raising $20M in 12 months.

Nathan holds their own ▶ 15:26 Latka challenges soft launch customer targeting logic

Latka leverages SaaS conversion logic to question why Kahoot is testing monetization on cold inbound traffic instead of monetizing existing highly active accounts.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Erik Harrell and Guest Background 3313 Latka introduces Harrell's pedigree and probes how Kahoot monetizes its 50 million active users. He catches Harrell's phrasing about 'planning to make money' to clarify whether the company is currently generating revenue from its new Kahoot Plus tier.
Classroom Gameplay Mechanics and Venture Funding History 2212 Latka walks through user mechanics in classroom settings and jokes about students disliking homework features. Harrell explains their live classroom mode and recaps their $26.5M funding history.
Scaling Rapid User Growth and Raising Growth Capital 3424 Latka bluntly asks how Kahoot raised $26M prior to launching monetization while most founders struggle for seed funding. Harrell explains their hyper-growth from zero to 50 million users and the $20M raised across his first 12 months as CEO.
Measuring User Engagement and Demonstrating Enterprise ROI 3312 Harrell details user engagement metrics, comparing Kahoot's active 10-minute session format to passive video consumption. He connects enterprise training use cases directly to quantifiable ROI in sales and support departments.
Kahoot Plus SaaS Pricing and Enterprise Account Reach 4335 Latka explores SaaS packaging at $120/year and asks how many paid seats have closed during the first 40 to 50 days. Harrell remains coy on exact customer conversions, choosing instead to highlight their 500,000 corporate account domain footprint.
Soft Launch Strategy and Inbound Testing Rationale 5336 Latka challenges Harrell's go-to-market strategy, questioning why Kahoot is testing pricing exclusively on new inbound leads rather than selling directly to engaged enterprise users. Harrell defends the decision as a controlled test before rolling out to their primary user base.
Paid Subscription Milestones and Year-End Targets 5247 Latka repeatedly presses Harrell for a hard range on paid subscribers, citing Harrell's finance background when he offers vague reassurances. Harrell eventually commits to crossing 1,000 paid trainers before year-end before moving through the Famous Five.

Statements from this episode (9)

Assertion Not checkable as stated
Harrell: Kahoot has over 50M MAUs, including 40M in K-12
“You know, of the fifty million, more than fifty million monthly active users we have, around forty million of those are in, in K to 12 school environments, so teachers are using the platform to teach math and science and those types of subjects, but we also ha…”
Eric Harrell Feb 21, 2018 ▶ 1:56
Assertion Not checkable as stated
Harrell: 25% of Fortune 500 companies use Kahoot for employee training
“So, you know, basically, 25% of the 14 500 companies are using Kahoot to, in, in, in a classroom setting to train their employees.”
Eric Harrell Feb 21, 2018 ▶ 2:16
Assertion Supported
Harrell: Kahoot Has Raised $26.5M From Microsoft Ventures and Disney
“We've raised 26 and a half million dollars to date. And those investors include Microsoft Ventures. Disney's put in a lot of some money. We also have the two leading Nordic firms that have put money into the company.”
Eric Harrell Feb 21, 2018 ▶ 6:40
Assertion Not checkable as stated
Harrell: Kahoot reached 50M users faster than Twitter
“We've gone from zero to fifty million users almost as fast as Facebook, faster than Twitter.”
Eric Harrell Feb 21, 2018 ▶ 8:02
Assertion Not checkable as stated
Harrell: Average Kahoot session duration is 10 minutes
“The average session time of a of a Kahoot is, is, is 10 minutes.”
Eric Harrell Feb 21, 2018 ▶ 9:32
Assertion Supported
Harrell: Kahoot business pricing is $120 annually or $14.95 monthly per trainer
“If you sign up for a annual plan you pay 10 dollars a month per trainer. So for, you know, so a 120 dollars a year, and then if you can also sign up monthly, which is 1495 a month.”
Eric Harrell Feb 21, 2018 ▶ 12:16
Assertion Not checkable as stated
Harrell: Kahoot has 500,000 separate corporate accounts
“We have basically we have as I said, 500,000 separate corporate accounts, which gives us a lot of confidence, because that's of course the challenge, as we all know, with ramping up a business, is where do you get the leads from.”
Eric Harrell Feb 21, 2018 ▶ 13:34
Disclosure
Harrell: Kahoot soft-launched paid tier only to new incoming leads
“So the way we've done a soft launch, which is why I'm a little bit coy about numbers is we've only focused on new leads coming in. We haven't done anything with these 500,000 corporate accounts.”
Eric Harrell Feb 21, 2018 ▶ 14:54
Prediction Held up
Harrell: Kahoot will definitely surpass 1,000 paid subscribers this year
“I'll I mean, we will definitely be in the thousands this year. I mean, it's, it was, so it'll be, you know, it'll be over a thousand for sure this year.”
Eric Harrell Feb 21, 2018 ▶ 17:48
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