Babbel is a good product with significant room for growth. Similarly the language learning market space is big and most likely will only be getting bigger. Babbel provides a solution to those with short term and long-term language learning plans, and does so at a reasonable price. The main issues surrounding its success are its ability to expand while sustaining its quality and its ability to out preform its competitors. In this regard, its most dangerous competitor is Duolingo, which offers many of the same services but for free.
At this point in time Babbel is already a successful company, but it has the potential to be so much more. The key to Babbel’s success so far is its innovation and it would be foolish to assume that it won’t keep developing new language-learning environments. Markus Witte, Thomas Holl, and Lorenz Heine are a strong, focused team that is committed to strengthening the product and know that innovation is the key to their success. For these reasons Babbel would make a great short-term and long-term investment opportunity.