Generative AI Learning Startup Gizmo Raises $3.5M
Generative AI education startup Gizmo has raised $3.5 million in a seed funding round led by NFX. Gizmo uses gamification techniques to improve learning through quizzes and flashcards created by AI.
Gizmo launched in 2021 and offers a web and mobile platform that employs generative AI to create quizzes and flashcards from a user’s class notes or other uploaded learning materials. Users can paste content directly into the system or ask the AI to find the relevant information in documents, presentations, and web pages. Gizmo uses proprietary natural language processing models to support the platform, identify key terms and concepts, and turn notes into personalized quizzes and study aids. It’s much faster than manually creating flashcards. Users can also generate quizzes from scratch by giving Gizmo a topic. The platform includes social features like sharing private study groups and a public marketplace of flashcard decks created by others.
“When most people think of education x AI, they think of the cat-and-mouse game between teachers and students using ChatGPT to write and read papers. What’s easy to miss is the underlying capability of AI to immediately generate learning systems that change the way we all learn,” NFX explained in a blog post about their decision to fund Gizmo. “When new students from the same class or subject create quizzes on Gizmo, it makes the platform instantly more valuable for others who can access that content and learn from it. As that body of content and quizzes grows, we see a data network effect emerging. Gizmo uses that data to build more quiz sets which in turn directly increases the value to their users.”
NFX pointed to Gizmo’s growth of more than 50% new users month over month and more than 300,000 users overall as a sign of its potential impact, especially since some users are spending more than two hours a day on the platform. The new money will go toward widening the company’s capacity and adding more features like a direct conversation with the AI and built-in note-taking setup.
Gizmo is among the education startups leveraging AI to find significant growth and plenty of investment interest. For instance, voice AI-powered reading coach developer Ello, who recently raised $15 million, and SoapBox Labs, a startup partnered with education industry giant Scholastic to expand access to its child-centered voice AI. There’s also generative AI education startup Loora, which recently raised $9.25 million for a voice-based English teacher app that mimics a human tutor in expanding and correcting their linguistic skills. Meanwhile, OpenAI and Duolingo have partnered to produce generative AI features for the language education app.