Our Ideas
We have decided to go with two potential directions to reach our goal of securing Series B funding and 3x growth ($5M ARR within 12 months).
- Continue targeting American universities for more partnerships
- Expand to acquiring contracts with corporations using the same business model we have for universities
TAM
The global language learning market was estimated to be $60 billion annually in 2023 (Global Market Insights). This figure is expected to grow to approximately $90 billion by 2030, with a Compound Annual Growth Rate (CAGR) of 18.5% (Yahoo Finance).
SAM
LinguaLeap’s slice of the market is primarily composed of universities located in the U.S. In the 2023–24 academic year, the National Center for Education Statistics (NCES) reported 5,819 institutions, including 2,691 four-year and 1,496 two-year colleges. Therefore there are an estimated 4000 degree-granting post-secondary institutions in the U.S.
According to the following statistics provided to us by our case sheet,
- CLV: $25k per university (2-3 year initial contracts) (according to the case sheet)
- ARR: $1.8M (65% university partnerships, 25% individual subscriptions, 10% pilot corporate programs)
If we exclusively focus on the university market and achieve 100% penetration for all the 4000 degree-granting institutions in the US, we calculate our SAM to be approximately $100,000,000.
SOM
University Contracts
We have currently captured 0.3% of the university market (we have 12 universities out of roughly 4000). If we expand our university contracts, assume a 5% penetration rate, and target only the public universities, of which there are approximately 1,500 public degree-granting U.S. universities (OnlineU), we would generate a SOM of about $1.875M.
Corporate Contracts
We want to target large businesses in the US, of which there are an estimated 20,000 (U.S. Small Business Administration). Assuming full penetration and $25k ACV per company, we get $500M. If we scale this down to a more realistic 2.5%, we would then generate $5M.
Works Cited
Global Market Insights. “Language Learning Market Size & Share.” 2023, www.gminsights.com/industry-analysis/language-learning-market.
Yahoo Finance. “Online Language Learning to Generate $91.6 Billion in Market.” 24 July 2024, finance.yahoo.com/news/online-language-learning-generate-91-133100989.html.
National Center for Education Statistics. “The Total Number of Higher Education Institutions Decreases by 2 Percent.” 21 Aug. 2025, nces.ed.gov/whatsnew/press_releases/8_21_2024.asp.
OnlineU. “How Many Colleges in the US?” 2023, www.onlineu.com/resources/college-planning/how-many-colleges-in-the-us.
U.S. Small Business Administration. “Small Business FAQ (Revised December 2021).” 2021, advocacy.sba.gov/wp-content/uploads/2021/12/Small-Business-FAQ-Revised-December-2021.pdf.
