The Khan Academy is truly an amazing startup. However, I think it is important to note that it is actually a 501(c)3 nonprofit. I'm sure Sal Khan has been approached by many VC's, but thankfully he has not gone for turning the concept into a for profit company. The technology, especially the "coach" dashboard, is very impressive and is already being used by teachers in classrooms around the classroom and country.
There are a lot of interesting companies in the space now. A couple that come to mind are http://www.betterlesson.org/, in Boston, who are building a way for teachers to share lesson plans and other resources; and http://www.learnboost.com, in SF, which is building an online gradebook and other tools for classroom management.
I'm a teacher working on http://edplans.com, support for K12 teachers. Two private beta users (education orgs) now...instant sign-on for teachers later this summer.
Teacher collaboration is one of the next 'big things' in schools. Our freshly-launched application enables teachers to partner with one another, wherever they are in the world. It's carefully designed for teachers: simple, no-nonsense; and no management approval is necessary.
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