Home News Income Share Agreements Dominate Y Combinator’s Latest Education Graduates – Ed Surge

Income Share Agreements Dominate Y Combinator’s Latest Education Graduates – Ed Surge

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The education industry’s current fascination with income share agreements—in which students typically pay a percent of their future income in lieu of upfront tuition—is no better exemplified than in the current crop of graduates from Y Combinator. More than half of the accelerator’s current education companies offer ISAs to attract students to their services.

“What a great model—it’s an amazing education for people for free,” says Geoff Ralston, president of Y Combinator. “We are seeing these spread around the world.”

To be fair, ISAs still face questions from regulators. And critics have questioned whether the model may be financially advantageous to every student.

This is the second of Y Combinator’s two yearly batches. (Here’s who presented in 2019’s first cohort.) Presenters at this week’s Demo Day include coding schools, a program to organize student loans and a startup that matches nascent developers with senior mentors to build projects for potential employers. The accelerator provides companies with $150,000 in seed funding for 7 percent of the company. Here’s a look at the latest edtech crop.

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