2. Who is CleanEdison?
2
Key Facts
Administers and creates shortform, vocational training programs
CleanEdison is the 2U of shortform vocational training programs
Certified over 15,000 students and
3,000 small businesses
Active “School as a Service”
partnerships with 15 colleges and
organizations
Providing turnkey solutions for
middle-skills training programs
Already the market leader in
several training vertical markets
Select Partners
3. The Problem:
Debt Without Degrees
3
(%)
Total student loan debt has
surpassed Credit Card and
Auto Debt
Wage stagnation has
hampered students’ ability to
repay loans
Graduation rates of nonprofit
universities are below 70%
For-profit graduation rates are
below 30%
The American Consumer’s
balance sheet will be crippled
for the foreseeable future
unless something changes
Degree-seekers attending or completing bachelor’s
degrees at 4-year institutions (2004)
80
70
Within 100% of
normal program
completion time
Within 150% of
normal program
completion time
Within 200% of
normal program
completion time
60
50
40
30
20
10
0
Nonprofit (%)
For-profit (%)
Source: National Center for Education Statistics
4. The Solution:
Vocational Training
4
Median Monthly Earnings for all Professional Certification or License
Relative to No Alternative Credential by Education Level: 2012
20% of employed CleanEdison students received avg. wage increase of $2.10 from training, 48%
received wage increases or new titles
51% of CleanEdison’s under-employed students obtained a new job as a direct result of training, with
$25/hour avg. wages
CleanEdison Student receiving wage increases recouped training costs in six months, and had an avg.
624% ROI three years post-training
Note: Nonrespondents are not included in estimates of alternative credentials. Only people employed full-time for
the 4 months before the survey with positive earnings are included in these analyses. Graph above does not include
PhD students. Source: US Census Bureau, Survey of Income and Program Participation, 2008 Panel, Wave 13.
5. Vocational School As a Service
(vSAAS)
5
CleanEdison’s vSAAS solution packages, distributes,
and markets online vocational programs for
community colleges and vocational schools
Program Details
CE enrolls students in Partner-branded
courses
Short-form and predominantly online
training ending in jobs or certification
NO DEBT for students
CleanEdison Provides
Curriculum Design
Faculty Training
Grant Writing
Industry Credentials
Job Placement
Monitoring
LMS Management
Marketing Services
Metrics Reporting
Operational Logistics
Student Recruitment
Student Retention
WIB and IWT Approvals
6. CleanEdison is Next in a Rapidly Growing
Industry
6
Institute for
Professional
Development
(origins of the
Apollo Group)
Embanet
founded as eMBAnet
in Toronto
2U (2tor)
founded
Orbis launches RN
partnerships
Deltak
founded
Quad launches
honors programs for
community colleges
LearningHouse
founded
1971
Incubated the
University of
Phoenix
1993
Acquired by
Pearson for
$650mm
(2012)
1996
Acquired by
Wiley for
$220
(2012)
2001
KKR /
Weld North
NA
(2012)
2003
Investment
by LLR of
$20mm
(2012)
CleanEdison pioneers
middle skills online for
community colleges
2008
2011
Investment led by
NEA
Over $100mm
$13mm
of venture
(2012)
investment
TODAY
7. Superior Economics
7
Lifetime Value
Cost to Acquire
Return on Ad Spend
$2,520
$400
$2,120
530%
Lifetime Value1
Cost to Acquire
Return on Ad Spend
$9,000
$3,000
$6,000
200%
Vocational
Degree
1. Lifetime value is blended across associate degrees ($6,000), bachelors ($14,000) and masters ($7,000)
8. We use Multiple Strategies to ensure
Success
8
Virtual Career Center
Student Analytics and
Insights
Student Support
Services
Digital Content
Development
Enrollment Growth
Marketing
Student Success!!
9. Sales and Marketing Strategy
9
Click Through
Rate: 2.1%
Click to Lead
Rate: 10%
Marketing Results
$350,000
400%
350%
$300,000
300%
$250,000
250%
$200,000
200%
$150,000
Lead to
Opportunity:
10%
Opportunity to
acquisition:
80%
Return on Ad Spend (ROAS)
Trailing 6-months: 393%
Trailing 3-months: 442%
Trailing 6-weeks: 516%
150%
$100,000
100%
$50,000
50%
Ad Spend
Inbound Sales
Q4 2013
Q3 2013
Q2 2013
Q1 2013
0%
Q4 2012
$0
6 Week ROAS
Bidding Drivers
A/B testing on min. 1000 impressions
Team updates on govt. support & market
trends
Historical & forecast class schedules
10. Grant Management Services
$Millions
10
$5
Grant Opportunity pipeline
$4
CleanEdison helps clients access over $3.23B of
annual Workforce Training funding (DOL only)
$3
DOL Program Budgets ($thousands)
$2
$1
$0
50
45
40
35
30
25
20
15
10
5
0
# of Community College
Partnerships
Data Source: 2013 DOL Budget
11. Business Model: Key Revenue Streams –
For Profit Schools
11
Hundreds of schools are at risk of closing
due to 90/10 violations. A subset of forprofit schools at risk, and their 90/10 ratios
listed at right.
Billions
US For-Profit Institutions’ 90/10 Ratios
$14
$12
$10
$8
$6
$4
$2
$0
Data Sources: eZ-Audit as of 6/17/13 and Annual Funding Summaries
School Name (subset)
Sanford-Brown College
Harrison College
2012
2012
Revenue
90/10 Ratio
$173,378,143
91%
$87,547,224
89%
Ross University School of Veterinary
Medicine
Vatterott College
Instituto de Banca y Comercio
$93,620,610
$163,114,575
$104,556,675
89%
88%
88%
$181,705,842
$142,308,760
$389,420,468
$83,169,266
$505,589,956
$1,348,149,118
$120,869,027
$86,250,501
$4,704,542,912
$437,286,260
$329,905,931
$256,727,259
$95,910,110
$167,803,782
$117,711,964
$153,238,758
$9,742,807,138
88%
88%
87%
87%
87%
87%
87%
86%
86%
86%
86%
86%
86%
85%
85%
85%
87%
International Academy of Design and
Technology
Ultimate Medical Academy
American InterContinental University
Florida Career College
Colorado Technical University
Ashford University
United Education Institute
Kaplan Career Institute
University of Phoenix
Art Institute of Phoenix (The)
Virginia College
Fortis College
Florida Coastal School of Law
Lincoln College of Technology
San Joaquin Valley College
National American University
Total Revenue
12. Business Model: Key Revenue Streams –
Community Colleges
12
CleanEdison Partners
Why Community Colleges?
Community Colleges lack the money,
technology, marketing expertise and staff
needed to compete in todays marketplace
Casper College
Chattahoochee Valley
Community College
College of Central Florida
County College of Morris
Ivy Tech Community College
North Orange Community
College District
Parkland College
Roxbury Community College
St. Louis Community College
Suffolk County Community
College
Ventura Community College
Vermont Technical College
12
13. Market Opportunity
13
We’re launching new partnerships and investing
Vocational education is a $30
in new content
Vocational
billion market relatively untouched
Education
$30bn
For Profit Schools
$20bn
Organization
Employee Training
$160bn
by online
For-Profit schools at risk of 90/10
failure is over $20bn
ASTD estimates that in 2012,
organizations spent approximately
$164.2 billion on employee
training
The US corporate e-learning
market is expected to generate
roughly $14.1 billion in 2013
revenues, growing at a 12.4%
CAGR from $3.5 billion in 2001
Not-for-profit universities are
moving degree programs online,
but community colleges and trade
schools are just beginning to
address online vocational
14. Team - Our team’s hustle and expertise sets us apart
Avi Yashchin,
Founder and CEO
Hannah Jurcowicz,
Business Development
Comly Wilson,
Director of Marketing
Raj Roy, Director of
Operations
Outspoken advocate for
vocational training. Spent
seven years in finance
where he served as VP in
the Energy sector. Avi
holds a BS in Computer
Science from Johns Hopkins
University and an MBA
from NYU Stern.
Oversees tech and financial
growth projects.
Responsible for developing
CleanEdison's data and
financial management
systems and processes.
Hannah graduated from
Cornell University with a
B.A. in Government.
Comly Wilson is responsible
for CleanEdison’s marketing
initiatives. Oversees all
curriculum development
and new Products. Comly
graduated from the
American University with a
B.A. in Energy and
Environmental Politics.
Raj manages new
partnerships and
operations. Previously, Raj
was a consultant at Booz &
Company. He holds a BS
and an MS from Columbia
University in Operations
Research.
16. Series B Fundraise
16
Funding
Funding History
17%
23%
Sales team
expansion
Integration of
curriculum
from SAAS
Raised $600k from
Angel Investors
17%
Use of Proceeds
33%
Product
development
(Healthcare,
Tech, etc)
Marketing
team
expansion
10%
Account
managers for
SAAS contracts
Current Round
Raising $3mm (Equity)
$6mm pre-money
Standard Gunderson
Terms
Closing March 20th
