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Quality Mobile
  Education

   Brian Busch
   • Aspiring entrepreneur for BOP, 4+ years in microfinance, MBA
   • 3+ years with fund manager in Costa Rica, invested in 18 MFIs, launched 2
      risk management TA programs, co-authored 2 papers, co-chair GSVC

   Toni Maraviglia
   • Impassioned educator, 5+ years working in education (1.5 years in Kenya)
   • Teach for America – Harlem, charter school teacher, MS Edu, launched
      WISERBridge for 8th grade students in Kenya – 30+ schools, 100+ teachers
What Does a Failing Education System Look Like?

100% 8th Graders20% Graduate      Graduates Earn
           45% Enroll of Girls
                 10%                   3-5x




                                    Subsistence
                                      Farmer
        Exit ExamPoverty Cycle     Slum Laborer
 For students and their families, this means:
  Anxiety, Disappointment, and Wasted Resources
90% of Kenyans have access to cell phones.

  Opportunity.
Evolution of MPrep:
  Kids will have better                                   Validated: shops rarely
                                     30+ Schools,
access to study tools via                                 carry review books and
                                450 8th grade students
        phones                                           internet access is limited
Survey Results
50
                                       Respondent         %
                                       Admin    5       10%
45                                     Parent  21       40%
40
                                       Student 19       37%
                                       Teacher  7       13%
35                                     TOTAL   52      100%
30
                                       Gender             %
25                                     Male      29     56%
20
                                       Female    23     44%
                                       TOTAL     52    100%
15


10


 5


 0

     SMS     Mobile    Tablet   Computer        None
           Broadband
Evolution of MPrep:
                     ✔
  Kids will have better                   30+               Validated: shops rarely
access to study tools via       Schools,             450    carry review books and
        phones                     8th grade students      internet access is limited
Evolution of MPrep:
                     ✔
  Kids will have better                   30+               Validated: shops rarely
access to study tools via       Schools,             450    carry review books and
        phones                     8th grade students      internet access is limited




                                                            Lesson Learned: Offer
  Students need a                100+ Parents: Families
                                                              prices in sync with
comprehensive review            can’t afford the upfront
                                                             family income ups &
     program                      cost of review books
                                                                    downs
Evolution of MPrep:
                     ✔
  Kids will have better                   30+               Validated: shops rarely
access to study tools via       Schools,             450    carry review books and
        phones                     8th grade students      internet access is limited




                                                            Lesson Learned: Offer
  Students need a                100+ Parents: Families
                                                              prices in sync with
comprehensive review            can’t afford the upfront
                                                             family income ups &
     program                      cost of review books
                                                                    downs




  Teachers fear cell             55 Teachers: Want to      Lesson Learned: Offer
phones – distraction to            engage students         individual data – lower
      students                        individually          cus. acquisition cost
Business Model
                    Initial Expenses              Customers:
                 SMS Interface:    $20K           • Individuals -
                 Curriculum:    $2K/ grade          $0.17/ quiz
                                                  • Avg 300 – 600
                          Operating Costs           quizzes/ yr
                       SMS Cost:     $0.15/quiz   • Prvt Schools –
                                                    full program
                       Mngt/ Staff: $10k/mth
                                                    ~$50/ student
Product:               Platform:    $5k/mth
• SMS Study
 Program
                               Demand Creation: $3k/mth
Resources:
•Curriculum
•Delivery                          Additional Revenue Streams:
 Platform
•Student Data
                                      Student Performance Data
•Relationships                        Ad Revenue
Sales Ecosystem:
    Take Daniel, Toni’s Kenyan brother. He wants to run a
    computer shop. He knows he needs to finish high school…

          Deciders                           Influencers
                                     Daniel’s Teacher wants better
 Daniel wants an easier, exciting
                                         data about individual
  way to study that gives him
                                     students, in real time, without
      individual feedback
                                               extra work
     Daniel’s Parents want an       Daniel’s Headmaster wants more
 affordable, effective study tool    of his students to go on to high
   that Daniel will actually use                  school


                Sale                 Daniel’s Friends want to know
Cust. Acquisition Cost: $130         how they stack up against him
Cust. Lifetime Value:   $300
The Market Opportunity
Assume: average usage 450
 quizzes / yr @ $0.17/ quiz
                              > 400mm students grades 7 – 12
                                       worldwide

      TAM: $32B                ≈ 100mm students grades 7-8
                                  East Africa, India, China
       SAM: $8B
                               ≈ 10mm students grades 7-8
       Target: $.8B                   East Africa

          Apex:               1.75 mm students grades 7-8 in
         $130M                           Kenya
High
        Go To Market Plan:                             Risks
1. Pilot: Jan – June 2012                 1. Student Adoption
     • Beta test at 16 schools             • What do we do to achieve 40%
     • Goals: 40% penetration and            penetration w/ good contacts at
       customer feedback                     schools?
2.     Full Kenya Launch:                 2. Viral growth
     • Goals: add product                  • How to grow when less involved?
       features, brand
       recognition, decreased SMS costs   3. Bring SMS Costs Down
3. East Africa, India, Brazil:            4. Local Lang. & Curriculum
     • Goals: launch 5–9 new countries     • How quickly can we adapt the
       by 2016                               program to other contexts?


                                                                            Low
Questions?
Contact:
brian@mprep.co.ke
http://mprep.co.ke
The Solution:          MPrep
          MPrep costs less than books, is easier to
              access, and engages teachers.
                       P.S. It’s way more fun to use.


Student Initiates                      MPrep sends an     Local Standing
                      Receives quiz:
                                       explanation for
    Pays w/ airtime    5 questions.                      Data to Teachers
                                       each response



•    Customized Study Program aligned with national curriculum
•    Easy to Access – any time, anywhere
•    Engages Students – constant feedback, local standings
•    Individualized Results and feedback to teachers

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Bmc m prep feb 2012

  • 1. Quality Mobile Education Brian Busch • Aspiring entrepreneur for BOP, 4+ years in microfinance, MBA • 3+ years with fund manager in Costa Rica, invested in 18 MFIs, launched 2 risk management TA programs, co-authored 2 papers, co-chair GSVC Toni Maraviglia • Impassioned educator, 5+ years working in education (1.5 years in Kenya) • Teach for America – Harlem, charter school teacher, MS Edu, launched WISERBridge for 8th grade students in Kenya – 30+ schools, 100+ teachers
  • 2. What Does a Failing Education System Look Like? 100% 8th Graders20% Graduate Graduates Earn 45% Enroll of Girls 10% 3-5x Subsistence Farmer Exit ExamPoverty Cycle Slum Laborer For students and their families, this means: Anxiety, Disappointment, and Wasted Resources
  • 3. 90% of Kenyans have access to cell phones. Opportunity.
  • 4. Evolution of MPrep: Kids will have better Validated: shops rarely 30+ Schools, access to study tools via carry review books and 450 8th grade students phones internet access is limited
  • 5. Survey Results 50 Respondent % Admin 5 10% 45 Parent 21 40% 40 Student 19 37% Teacher 7 13% 35 TOTAL 52 100% 30 Gender % 25 Male 29 56% 20 Female 23 44% TOTAL 52 100% 15 10 5 0 SMS Mobile Tablet Computer None Broadband
  • 6. Evolution of MPrep: ✔ Kids will have better 30+ Validated: shops rarely access to study tools via Schools, 450 carry review books and phones 8th grade students internet access is limited
  • 7. Evolution of MPrep: ✔ Kids will have better 30+ Validated: shops rarely access to study tools via Schools, 450 carry review books and phones 8th grade students internet access is limited Lesson Learned: Offer Students need a 100+ Parents: Families prices in sync with comprehensive review can’t afford the upfront family income ups & program cost of review books downs
  • 8. Evolution of MPrep: ✔ Kids will have better 30+ Validated: shops rarely access to study tools via Schools, 450 carry review books and phones 8th grade students internet access is limited Lesson Learned: Offer Students need a 100+ Parents: Families prices in sync with comprehensive review can’t afford the upfront family income ups & program cost of review books downs Teachers fear cell 55 Teachers: Want to Lesson Learned: Offer phones – distraction to engage students individual data – lower students individually cus. acquisition cost
  • 9. Business Model Initial Expenses Customers: SMS Interface: $20K • Individuals - Curriculum: $2K/ grade $0.17/ quiz • Avg 300 – 600 Operating Costs quizzes/ yr SMS Cost: $0.15/quiz • Prvt Schools – full program Mngt/ Staff: $10k/mth ~$50/ student Product: Platform: $5k/mth • SMS Study Program Demand Creation: $3k/mth Resources: •Curriculum •Delivery Additional Revenue Streams: Platform •Student Data Student Performance Data •Relationships Ad Revenue
  • 10. Sales Ecosystem: Take Daniel, Toni’s Kenyan brother. He wants to run a computer shop. He knows he needs to finish high school… Deciders Influencers Daniel’s Teacher wants better Daniel wants an easier, exciting data about individual way to study that gives him students, in real time, without individual feedback extra work Daniel’s Parents want an Daniel’s Headmaster wants more affordable, effective study tool of his students to go on to high that Daniel will actually use school Sale Daniel’s Friends want to know Cust. Acquisition Cost: $130 how they stack up against him Cust. Lifetime Value: $300
  • 11. The Market Opportunity Assume: average usage 450 quizzes / yr @ $0.17/ quiz > 400mm students grades 7 – 12 worldwide TAM: $32B ≈ 100mm students grades 7-8 East Africa, India, China SAM: $8B ≈ 10mm students grades 7-8 Target: $.8B East Africa Apex: 1.75 mm students grades 7-8 in $130M Kenya
  • 12. High Go To Market Plan: Risks 1. Pilot: Jan – June 2012 1. Student Adoption • Beta test at 16 schools • What do we do to achieve 40% • Goals: 40% penetration and penetration w/ good contacts at customer feedback schools? 2. Full Kenya Launch: 2. Viral growth • Goals: add product • How to grow when less involved? features, brand recognition, decreased SMS costs 3. Bring SMS Costs Down 3. East Africa, India, Brazil: 4. Local Lang. & Curriculum • Goals: launch 5–9 new countries • How quickly can we adapt the by 2016 program to other contexts? Low
  • 14. The Solution: MPrep MPrep costs less than books, is easier to access, and engages teachers. P.S. It’s way more fun to use. Student Initiates MPrep sends an Local Standing Receives quiz: explanation for Pays w/ airtime 5 questions. Data to Teachers each response • Customized Study Program aligned with national curriculum • Easy to Access – any time, anywhere • Engages Students – constant feedback, local standings • Individualized Results and feedback to teachers

Notes de l'éditeur

  1. Problem – 450 students, mostly in rural, SW Kenya near boarder with Tanzania. Toni lived in a rural village, w/ daniel, 8th grade student.
  2. Solution: 52 people filled out the survey – more than 52 responses because individuals have access to multiple technologies Type of Respondent %Administrator510%Parent2140%Student1937%Teacher713%TOTAL 52100%Gender %Male2956%Female2344%TOTAL 52100%
  3. Problem - >100 parents in Nyanza, mostly mini-interviews, common response: “I can’t afford the books my kids need” yet paying for preps and test papers. Solution: launch of beta, immediately had 30 parents (25% of attendees) register for the program before the initial quizzes are ready, common comments “will I be able to afford it?”
  4. Problem – DR story. Teachers resigned Solution – 50 -75 at a teachers conference in Mombassa. Early vision for the product from Toni – formative assessments, teachers have really responded to this, comments like “I love the way it explains to individual students, I wish I had time to do that” or “I want to use this to assess my students.” – want better data, more individualized the better.
  5. How many students to breakeven? Fixed: ~20k/ month / $0.03 (margin/ quiz) = 670k quizzes / (450/11) = 16,341 users (~9% of total market).
  6. CAC assumes some scale - roughly 100k usersLTV assumes 5 years of engagement with @ ~$60 per year
  7. Just top line 30+ billion worldwide and >400m students and Apex – launching targeting 7th-8th graders in Kenya ~140 M (1.75m*.17*450 - or 105m= 1.75m *60 ($/fam)
  8. Student adoption a function of learning effectiveness and usage.Shortening the learning cycle: two assessment schools – we pay for mock exams on a regular basis in order to assess learning impact sooner and iterate on product.Looking forward to more experimentation, particularly around user adoption and sales cycle – what do we need for a successful sale – learning metrics
  9. Just the key features – what’s the real value we’ll deliver to customers and how (lead right into biz model) [hide?]