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
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
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
Problem – 450 students, mostly in rural, SW Kenya near boarder with Tanzania. Toni lived in a rural village, w/ daniel, 8th grade student.
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%
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?”
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.
How many students to breakeven? Fixed: ~20k/ month / $0.03 (margin/ quiz) = 670k quizzes / (450/11) = 16,341 users (~9% of total market).
CAC assumes some scale - roughly 100k usersLTV assumes 5 years of engagement with @ ~$60 per year
Just top line 30+ billion worldwide and >400m students and Apex – launching targeting 7th-8th graders in Kenya ~140 M (1.75m*.17*450 - or 105m= 1.75m *60 ($/fam)
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
Just the key features – what’s the real value we’ll deliver to customers and how (lead right into biz model) [hide?]
