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