TL;DR:
- Goodnotes, the notetaking startup, acquires South Korean AI-powered video summary tool startup, Dropthebit.
- The move signifies Goodnotes’ shift from the education sector towards developing productivity tools for professionals.
- All three co-founders of Dropthebit will join Goodnotes, and Traw, Dropthebit’s tool, will shut down in February but allow data export for existing customers.
- Dropthebit, founded in 2020 with $1 million in funding, initially offered a whiteboard solution and later focused on meeting summarization and AI-powered YouTube video summarization.
- Goodnotes, with 24 million monthly active users, previously focused on digital notebooks for students but now aims to cater to professionals.
- Integration with Traw’s capabilities, including video analysis and Excel data compilation, opens opportunities for investors and market researchers.
- Future plans include transcription services, support for YouTube and internal videos, and Large Language Model-based features.
- Goodnotes has also invested $1.9 million in the Korean digital stationary startup WeBudding.
- Despite past fundraising, Goodnotes does not plan to raise more funds, focusing on user experience and product development.
Main AI News:
Goodnotes, a London-based notetaking startup, has taken a significant step towards diversification by acquiring South Korean startup Dropthebit, renowned for its AI-powered video summary tool, Traw. This strategic move marks Goodnotes’ departure from the exclusive realm of education, as the company sets its sights on developing productivity tools tailored for professionals.
Under the terms of the acquisition, all three co-founders of Dropthebit will join forces with Goodnotes. Concurrently, Traw has announced on its website that it will cease operations in February but will extend the courtesy of allowing existing customers to export their data.
Dropthebit, originally founded in 2020 and having secured $1 million in funding to date, initially made its mark with the introduction of a whiteboard solution in 2022. This ingenious tool captured the contents of a whiteboard during lectures or meetings and transformed them into a consumable document. Over time, Traw evolved by shedding the whiteboard functionality, concentrating on meeting summarization, and incorporating an AI-powered feature for summarizing and categorizing YouTube videos.
Steven Chan, the founder of Goodnotes, shared insights with TechCrunch, disclosing that Dropthebit had been actively seeking Series A funding. In the end, Goodnotes opted for acquisition over investment, motivated by a shared vision. Chan explained, “Even before we met Dropthebit through a mutual investor connection, we were very impressed by their work. Their multimodality was something we were interested in and saw it as good synergy with Goodnotes.”
Goodnotes, boasting over 24 million monthly active users, has traditionally been committed to delivering a digital notebook-like solution primarily tailored for students. This journey commenced with the launch of an iPad app in 2011. In August 2023, the startup introduced Goodnotes 6, featuring a digital marketplace for planners and subject-specific revision notes. Furthermore, it introduced paid education modules, including SAT Math practice courses and English and Chinese courses for the Hong Kong Diploma of Secondary Education Examination (HKDSE).
With the recent acquisition, Goodnotes is poised to expand into the productivity sector, serving professionals in various fields. Chan identified Traw’s capabilities, such as video analysis and data compilation into Excel sheets, as potentially valuable tools for segments like investors and market researchers, representing a significant stride away from the education-centric model.
Chan also revealed future plans for integration, stating, “We already have an audio recording in Goodnotes, but with Traw’s integration, we will look towards transcription business and later we’ll also integrate support for YouTube or (a company’s) internal videos. Separately, we are also building LLM (Large Language Model)-based features so users can ask questions about the notes or meetings.”
Goodnotes aims to transform into a “paperless digital notebook” for professionals, assisting them in extracting valuable insights from meetings and documents. Presently, Goodnotes predominantly emphasizes stylus-based handwritten notes but is actively improving the typing experience to accommodate various forms of notetaking.
In addition to the Dropthebit acquisition, Goodnotes made a strategic investment of $1.9 million in the Korea-based digital stationary startup, WeBudding, in September 2023. Despite securing a $6 million seed investment from Race Capital in 2020, Goodnotes currently has no plans to pursue additional fundraising endeavors. Steven Chan underscored their commitment to cost-efficiency, stating, “We like the flexibility of focusing on the user experience and building the product. So we plan to keep it that way in the foreseeable future.“
Alfred S. Chuang, General Partner at Race Capital, expressed enthusiasm for Goodnotes’ venture into the productivity sector. He highlighted the Traw team’s exceptional talents in AI and engineering, foreseeing the integration of AI-powered audio and screen recording capabilities into Goodnotes. Chuang acknowledged the challenges ahead for Goodnotes, emphasizing the importance of sustaining growth without compromising the user experience.
Conclusion:
Goodnotes’ acquisition of Dropthebit and its strategic shift towards serving professionals in the productivity sector reflects a strategic move to diversify its offerings. By leveraging Traw’s capabilities and focusing on transcription services and AI-driven features, Goodnotes aims to become a key player in the professional notetaking and productivity market. This expansion aligns with the company’s commitment to cost-efficiency and enhancing the user experience, potentially opening new opportunities for growth and market presence.
