Scaling educational technology in global markets: Lü’s export journey

In 2017, a video of Lü Interactive Playground‘s unique approach to teaching children went viral, sparking global interest in immersive learning tools and interactive classroom technology.

Founded by Vincent Routhier, Lü turns school gyms into digital learning environments for kids. The company quickly scaled internationally, reaching schools in 10 countries within a year – an early example of Canadian edtech export success and the international growth of immersive learning.

With the support of Export Development Canada (EDC), strategic export partnerships and financial solutions, Lü now serves more than 1,600 schools worldwide, offering 2,500 tech systems and 45 apps.

On EDC’s Export Impact Podcast, Routhier shares Lü’s export strategy for educational startups and edtech market entry strategies.

Tune in to the Export Impact Podcast and find out how Lü overcame challenges to scale globally. Follow us on your favourite streaming platforms, so you never miss an episode. New episodes are released on the last Thursday of each month.

Seizing on the momentum of that 2017 video, that shows how an ordinary gymnasium goes from four walls and a ceiling to a playful digital environment with depth and curiosity, the Lü team quickly launched a landing page to collect emails from educators and innovators worldwide.

“I collected thousands of emails over that first weekend and people who wanted more information or thought this was a product and it wasn't at that time were from all over the world basically,” explains Routhier.

As a result, year one, he says, was more about targeting early supporters as opposed to penetrating specific markets and countries.

“Who's excited with the product and excited enough to convince people to put money on a project that is, let's call it, risky because it's something new,” says Routhier. “It was a lot about people. So those early adopters... I think this is where we saw trends.”

By its second year, Lü had shipped over 100 units and began to identify emerging trends, particularly a higher concentration of adopters in European countries.

The company discovered that regulatory alignment and market development were key to successful international expansion and risk management in global edtech ventures.

As Vincent explains: "I would say the more developed the market is, or close to our laws and regulations, the easiest it was. So going to the U.S. was pretty straightforward. Going in the Philippines was kind of a little bit shaky."

Lü's export strategy for educational startups focused on following market traction and adapting to local needs, especially in markets with supportive laws and regulations.

Scaling educational technology across international markets presents real challenges for Canadian startups going global. Lü encountered operational hurdles in regions with complex regulations and unpredictable budgets.

Their U.S. market base, which accounts for around 85% of Lü’s sales, saw a nearly 30% decline this year compared to last. “It's complicated to get budget allocated and as they make cuts, the first places budget goes is to people. Because they're lacking staff and even food in the morning for the kids, technology doesn't come first in those conditions,” explains Routhier.

To manage this challenge, Lü applied the same strategic foresight they used during the COVID-19 pandemic – planning for multiple scenarios and adjusting investment strategies accordingly. “So, we had to adapt and plan for different scenarios and play safe with investment and money and I think that trickled down the whole chain basically,” says Routhier.

“We're planning for growth. We just launched a new product a few weeks ago. We're shipping that new product right now,” says Routhier.

Lü’s vision is to reach 10% of children worldwide through its immersive learning technology. Achieving this goal means expanding into new international markets and developing products that are more accessible for smaller spaces and more affordable for schools. “We’re still investing in the future,” Routhier affirms.

EDC has played a pivotal role in Lü’s global expansion strategy. “Having EDC as a partner made people more comfortable taking risk at some point. Having EDC guarantee part of the credit margin, the credit lines with the financial institution, was really helpful for us to get access to capital for inventory and payment terms for foreign companies,” explains Routhier.

Thanks to EDC, Lü was able to secure its line of credit and receive guidance on essential export financing mechanisms, such as trade credit insurance.

Beyond financial support, EDC helped build strategic relationships. “EDC made very good introductions for potential partners within financial institutions that became very strong partners over time,” reveals Routhier.

Routhier offers three words of advice for Canadian entrepreneurs aiming to enter international markets: “Just do it,” he says. “It's even simpler to become a success outside of our country than within our country at some point.”

Lü Interactive Playground’s journey offers a powerful example for Canadian edtech startups aiming to scale globally. By combining immersive learning innovation, strategic export planning and support from EDC, Lü has successfully navigated international challenges and built a strong presence in the global technology space.

Ready to learn more? Listen to the Export Impact Podcast on edc.ca, or subscribe on Spotify, Apple or Amazon Music, and start turning your international business goals into reality. 

This content was created in part using generative artificial intelligence (Gen AI).