Despite increasing interest from capital, education is comparatively starved.

@mpstaton

Percentage of Sector GDP vs VC Investment

Education is the third largest segment of the economy, yet has been significantly under-represented in venture

Source: World Economic Outlook database, Centers for Medicare & Medicaid Services, US Department of Energy, UN Human Development report, PWC / NVCA “Money Tree Report”, BMO Capital Markets “Education & Training”, World Bank Study

60% ICT

31% Health10% Alt Energy ~0% Education

% of total VC investment

0%

15%

30%

45%

60%

IT Energy Education

% GDP %VC

% of US economy

58% other

17% Health

9% Energy

8% ICT

8% Education

$53 Trillion in Managed Assets$200 Billion in Venture Capital

$3 Trillion in Private Equity

> $2 Billion in Education Ventures

$212 Trillion in Global Assets

.0001% of Capital goes to Innovation in Education

Venture Capital helps create industries.

Where do we put our money?

We act like money grows on trees....

$141 Billion in High-

Frequency Trading 73% of trading volume

$2.2 Trillion in Hedge Funds

“A new breed of trader had emerged who focused on gaming the plumbing itself, exploiting complex loopholes and quirks inside the blueprints like card counters ferreting out weaknesses in a blackjack dealer’s hand.”

“Because hedge fund managers make speculative investments, these funds can carry more risk than the overall market”

•Global Macro

•Directional

•Market Neutral

•Event Driven

Some capital pools seem far away from value creation

Private Equity is lost

“More Money Than They Know What to Do With” - The New York Times

$500 Billion in Private Equity has nowhere to go.

Extractive Actively seeks to extract value out of calculable assets

Migratory Searches for unfair returns by gaming the system

Productive Invests in long-term strategies proposed by entrepreneurs and management

Visionary Seeks to invest in entrepreneurs and management pursuing a vision for the future

Let’s simplify

Clayton Christensen’s definitions according to the “doctrine of new finance.”

Let’s simplify

Migratory Productive

Extractive Actively seeks to extract value out of assets

Migratory Searches for unfair returns by gaming the system

Productive Invests in long-term strategies proposed by entrepreneurs and management

Visionary Seeks to invest in entrepreneurs and management pursuing a vision for the future

We need to think of capital as having intentions.

Migratory Productive VisionaryExtractive

We need to think of capital as having intentions

What if we could reorient capital?

Migratory Productive VisionaryExtractive

What if we could reorient capital?

Migratory Productive VisionaryExtractive

What if we could reorient capital?

Migratory Productive VisionaryExtractive

What if we could reorient capital?

Migratory Productive VisionaryExtractive

Inspiring work Make a profit

An inappropriate dividing line.

Blur the line

let’s refuse “OR”

Inspiring work

Make a profit

“AND”

$4.6 Trillion in Sovereign Wealth

$583 Billion in Philanthropic

Assets

$411 Billion in University

Endowments

$1.14 Trillion in (Funded) Teacher

Retirement Assets (US)

There are capital sources that have an interest...

Emergence of Crowdfunding.

Crowdfunding models can unlock larger pools

$217B in Individual Giving

$42B in Foundation Giving 35% in Top 1% Assets

53% in Next 19% Assets

Grow the pie.

What if we could open up investment into visions for the future?

inspire.vc

What if we could....

?

Thank you. @mpstaton