bmc m prep feb 2012
TRANSCRIPT
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
Quality Mobile Education
What Does a Failing Education System Look Like?
100% 8th Graders
45% Enroll
Exit Exam
20% Graduate10% of Girls
Graduates Earn 3-5x
Subsistence Farmer
Slum LaborerFor students and their families, this means:Anxiety, Disappointment, and Wasted Resources
Poverty Cycle
90% of Kenyans have access to cell phones.
Opportunity.
Kids will have better access to study tools
via phones
30+ Schools, 450 8th grade
students
Validated: shops rarely carry review books and internet
access is limited
Evolution of MPrep:
SMS Mobile Broadband
Tablet Computer None0
5
10
15
20
25
30
35
40
45
50
Survey Results
Respondent %Admin 5 10%Parent 21 40%Student 19 37%Teacher 7 13%TOTAL 52 100%
Gender %Male 29 56%Female 23 44%TOTAL 52 100%
Kids will have better access to study tools
via phones
30+ Schools, 450 8th grade
students
Validated: shops rarely carry review books and internet
access is limited
Evolution of MPrep:✔
Kids will have better access to study tools
via phones
30+ Schools, 450 8th grade
students
Validated: shops rarely carry review books and internet
access is limited
Students need a comprehensive review program
100+ Parents: Families can’t afford the upfront cost of
review books
Lesson Learned: Offer prices in sync with family income
ups & downs
Evolution of MPrep:✔
Kids will have better access to study tools
via phones
30+ Schools, 450 8th grade
students
Validated: shops rarely carry review books and internet
access is limited
Students need a comprehensive review program
100+ Parents: Families can’t afford the upfront cost of
review books
Lesson Learned: Offer prices in sync with family income
ups & downs
Teachers fear cell phones – distraction
to students
55 Teachers: Want to engage students
individually
Lesson Learned: Offer individual data
– lower cus. acquisition cost
Evolution of MPrep:✔
SMS Interface:$20KCurriculum: $2K/ grade
Operating Costs
Business ModelInitial Expenses
Demand Creation: $3k/mth
Mngt/ Staff: $10k/mth
Additional Revenue Streams:Student Performance
DataAd Revenue
Product:• SMS Study Program
Resources:•Curriculum•Delivery Platform
•Student Data•Relationships
SMS Cost:$0.15/quiz
Platform:$5k/mth
Customers:• Individuals -
$0.17/ quiz• Avg 300 – 600
quizzes/ yr• Prvt Schools –
full program ~$50/ student
Sales Ecosystem:Take Daniel, Toni’s Kenyan brother. He wants to run a computer shop. He knows he needs to finish high school…
Daniel wants an easier, exciting way to study that gives him
individual feedback
Daniel’s Parents want an affordable, effective study tool
that Daniel will actually use
Daniel’s Teacher wants better data about individual students, in real time, without extra work
Daniel’s Headmaster wants more of his students to go on to high
school
Daniel’s Friends want to know how they stack up against him
Deciders Influencers
SaleCust. Acquisition Cost: $130Cust. Lifetime Value: $300
The Market Opportunity
TAM: $32B
SAM: $8B
Target: $.8B
Apex: $130M
> 400mm students grades 7 – 12 worldwide
≈ 100mm students grades 7-8 East Africa, India, China
≈ 10mm students grades 7-8 East Africa
1.75 mm students grades 7-8 in Kenya
Assume: average usage 450 quizzes / yr @ $0.17/ quiz
1. Pilot: Jan – June 2012• Beta test at 16 schools• Goals: 40% penetration and
customer feedback
2. Full Kenya Launch:• Goals: add product features,
brand recognition, decreased SMS costs
3. East Africa, India, Brazil:• Goals: launch 5–9 new countries
by 2016
1. Student Adoption• What do we do to achieve 40%
penetration w/ good contacts at schools?
2. Viral growth• How to grow when less involved?
3. Bring SMS Costs Down
4. Local Lang. & Curriculum• How quickly can we adapt the
program to other contexts?
Go To Market Plan: RisksHigh
Low
The Solution: MPrep
Student InitiatesPays w/ airtime
Receives quiz: 5 questions.
MPrep sends an explanation for each response
Local StandingData to Teachers
MPrep costs less than books, is easier to access, and engages teachers.
P.S. It’s way more fun to use.
• 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