"The Lion's Den" is celebrating its anniversary – the startup show launched ten years ago, and is now in its 16th season. Two veterans returned for the anniversary episode: Frank Thelen and Jochen Schweizer. Together with Carsten Maschmeyer, Judith Williams, and Ralf Dümmel, the two original investors once again sat in the Lion's Chair. The 2022-founded startup pitched to this jury. Startup Rocket Tutor, which started as a university project at the Technical University of Munich.
The founders' mission: to personalize education through the use of artificial intelligence and make it accessible to every learner. Komaldeep Chahal, Yue Wu, and Lionel Rühlemann have created a personal AI Math Tutor developed to prepare each user individually for the next math exam and the Abitur (high school diploma). The Rocket Tutor AI automatically creates a comprehensive learning plan. During the exercises, the AI understands exactly where each individual's weaknesses lie. This allows the AI tutor to re-explain anything the learner doesn't understand, provide targeted exercises in real time, and develop skills.
The user statistics already speak for themselves. Yue Wu explained:
“With our small team, we managed in the first year that one in ten high school graduates in Bavaria prepared their math Abitur with us.”
The valuation of Rocket Tutor was correspondingly high. The founding trio offered 4.2 percent of their company shares for €400,000.
Rocket Tutor: Gambled too high?
Tech entrepreneur Frank Thelen used his expertise to examine the technical details in detail. Given the company's previous revenues, Edtechs He considered the valuation far too high. Although he considered the product to be good, he declined to invest. Ralf Dümmel and Jochen Schweizer also refrained from financing. Dümmel cited his lack of expertise in the education sector, and Schweizer viewed the rapid development in the field of AI as too great an uncertainty factor.
"I find the topic you're addressing sensational. Education is the most important issue for our country and, I believe, for every country. It's an investment in the future."
praised Judith Williams, but showed no willingness to make this investment himself.
Carsten Maschmeyer was interested in the potential further development of the system. The prospect of making Rocket Tutor accessible to lower grades and pursuing internationalization in the medium term appealed to the lion. However, he also considered the valuation unjustified and demanded a higher percentage. His offer: €500,000 for a seven percent stake and voting rights.
After extensive discussions, the founders agreed. According to Wirtschaftswoche, the deal is now finalized. The magazine quoted Lionel Rühlemann:
"We signed an option agreement with Carsten Maschmeyer immediately after the show. Then we were very busy with the final exams in the spring. But in mid-August, we went to the notary together and sealed the deal."
