pelotonu venture philanthropy

PelotonUProviding working students a

pathway to college graduation

MEET DESIREEMom, Front Desk Supervisor at La Quinta

Pursuing a BA in Management; Future small business owner

FOLKS WHO NEED A DEGREEAREN’T GETTING ONE

Just 16% of part-time students

in Austin graduate.

THAT’S BECAUSE COLLEGE WASN’T BUILT FOR TODAY’S STUDENT.71% of students are “non-traditional”

LUCKILY, THERE’S COMPETENCY-BASED EDUCATION (CBE).

It’s college for working adults. There’s just one problem...

…GRADUATION RATES AREN’T MUCH BETTER.

We’re PelotonU!We blend competency-based education with in-person

support so working students graduate from college debt-free.

THAT’S WHERE WE COME IN. . .

SPECIFICALLY, WE OFFER THREE THINGS.

Space Coaching Deadlines

AND IT’S WORKING85% of our students are on track to graduate.

CURRENT SNAPSHOT

45 StudentsUp 100% from last year

Average Age: 29From 18 to 55

$26,000 Avg. Income$22,000 median annual income

8 Referral PartnersSource of 62% of our students

HERE’S THE COOL PART:WE EARN $2,500 PER STUDENT

UNITECONOMICSRevenue RevenuePerStudent $2,500 VariableCosts/Student(1) Culture $60CollegeCoachCost/Student $816TotalVC $876 Contribu>ontoFPC $1,624 FixedCosts Rent $26,364ExecuBveDirector $32,655DirectorofStudentRecruitment $48,983DirectorofCollegeCompleBon $48,983OtherOpEx $16,036TotalFixedCost/Yr $173,020 Breakeven#ofStudents 107

UNIT ECONOMICS

  2016 2017 2018 2019 2020

Enrollment           Standard Cohort Size (primary driver)         30

            Students End Of Yr 53 131 227 286 314

New Students Enrolled During Period 55 90 120 120 120

            Profit and Loss           Revenue $31 $123 $315 $507 $645

Variable Expenses $93 $151 $225 $266 $318

Contribution ($62) ($28) $89 $241 $327

            Student Support 75 81 93 93 94

Recruitment 53 58 63 63 63

Other Operating Expense 41 50 59 60 63

Total Fixed Expenses $169 $189 $215 $217 $220

            Profit ($232) ($217) ($126) $24 $107

            Capital Requirements           Break-Even Month (On an LTM Basis)         Jul-19

Capital Raise Needed To Reach Sustainability         $343

            Outcomes           Cumulative Stats           Students Enrolled 55 145 265 385 505

            Graduated w/ Assc. – 4 11 22 34

Graduated w/ Bach. – 1 16 50 114

Cumulative Scholarship $ Provided         $297

Cash Investment Per Graduate through 2020         $2.3

FORECAST

THAT’S WHY WE’RE RAISING $300,000By 2019, we’ll break even.

THROUGH 2020

505 Students

With another 120 per year thereafter

114 Bachelor’s Degrees

And 34 Associate’s Degrees

$297,000 in Scholarships

And almost $3 million in avoided student loan debt

$57 million in new wages

That’s $25,000 per year per graduate

LONG TERM, WE’LL GROW A NETWORK OF PATHWAYS.McAllen / San Antonio / & More

WILL YOU JOIN US AND CONTRIBUTE?

Contact Hudson@pelotonu.org

DESIGNED BY TRIP CARROLL , CREATIVE DIRECTOR AT EMBASSY Embassy is a proud supporter of Peloton U’s team and students