This document proposes a model called "CloudAcademy" that provides paid online education and training in programming. Students would earn a monthly salary of $100 to learn skills through online tutorials, freelance work providing services to companies, and internships. Companies benefit by gaining access to a cost-efficient workforce. The model estimates a total profit of $640 per student trained. With 10,000 students annually, total potential profit would be $6.4 million per year. Seed funding of $130,000 is requested to launch the program and expand to 100 cafes and 10,000 students within 3 years.
2. An unskilled worker A skilled programmer
Earns 80 USD month Earns 800 USD month
A POTENTIAL10X INCREASE IN SALARY AS
RETURN ON INVESTMENT IN EDUCATION
The Opportunity
VS
3. WHAT IS MISSING?
We already have online educational institutions
We already have available online labor markets
But what about institutions that invest in education?
4. A MODEL FOR PAID EDUCATION
Internet Cafes
ONLINE EDUCATION TRAINING TASKS
Development company
- Physical host
- Paying students
- Online training material
- Control and examins
- Real world training tasks
- First Source of Revenue
- Offers development services
- Second Source of Revenue
5. Value proposition to students
Get paid 100 USD/month to learn programming
Avoid student loans
Dont waste your time
on irelevant education
Test your skills with
real world jobs
Get qualified for
existing jobs
6. Value proposition to companies
Invest in a class of 10 coders
for one year to meet your future
demand for talented coders
ready to work for you
Get access to a cost efficient workforce
Scale development faster and efficiently
Get specialized coders for your business
7. UNIT ECONOMICS
4 month of basic training/tutorials etc
• Student salary: 60 USD/month x 4 = 240 USD
• Hosting/admin: 20 USD/month x 4 = 80 USD
• Teacher salary: 20 USD/month x 4 = 80 USD
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• Total cost = 400 USD per student
4 month of “on-the-job-training” - freelance work
• Student salary: 60 USD/month x 4 =. 240 USD
• Hosting/admin: 20 USD/month x 4 = 80 USD
• Coaching salary: 20 USD/month x 4 = 80 USD
---------------------------------------------
• Total cost = 400 USD per student
• Revenue from 4 month of work = 800 USD per student
4 month of internship in a professional team:
• Student salary: 300 USD/month x 4 =. 1200 USD
• Hosting/admin: 20 USD/month x 4 = 80 USD
• Coaching salary: 20 USD/month x 4 =. 80 USD
• ---------------------------------------------
• Total cost = 1.360 USD per student
• Revenue from 4 month of work = 2.000 USD per student
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Total profit per student = 640 USD per student
8. Market potential
10.000 x 640 USD = 6.400.000 USD/YEAR
Potential students Profit/
Student/year
Market
potential
CloudAcademy expect to support the education of 10.000
students within thre years of operation