Wednesday, March 30, 2016

1871 CEO Howard Tullman Interviewed on Data Uses by CBS


Marketplace Models Hit Education: 5 Lessons from #OnDemandEDU

Marketplace Models Hit Education: 5 Lessons from #OnDemandEDU

By Amanda Nyren 

From Uber to TaskRabbit, on-demand labor marketplace start-ups have taken off in recent years, and education is proving no exception. Edtech-specific applications of the “sharing economy” were the focus of an “Education On-Demand” panel last Thursday at 1871, a tech incubator and coworking space in downtown Chicago. Organized by Educelerate, Inc. (a not-for-profit, grassroots network of education innovation-oriented meetups of 3,000 members in Chicago, Twin Cities, Colorado and LA), and sponsored by Pearson, the panel brought together four cofounders and one head of product, all working in edtech startups that have adopted the marketplace model.
The panel included representatives from WyzAnt (marketplace for tutors and the oldest of the featured startups) as well as upstarts like Admissionado (marketplace for admissions consultants), Mntors.com (marketplace for career and college mentors), The Graide Network (marketplace for K-12 grading support) and Adjunct Professor Link or “APL” (self-evident). With such a breadth of experience, panelists nonetheless found a lot to agree on, including five key takeaways below.

The Marketplace Advantage

It’s no surprise that the panelists all agreed that on-demand labor scales well. However, many have found that the marketplace model also means better economics and service. Peter Le, founder of Mntors.com, noted his motivation in building a marketplace model for its ability to cut out a lot of margin to lower the cost of educational services to end users.
But it’s more than cost, said Admissionado COO Lauren Herskovic. The company has a service advantage in that its model attracts enthusiastic experts: individuals with full-time jobs who want to help students out of passion. And the marketplace model uniquely allows them to spread out demand more smoothly and across more consultants during peak college application season. Likewise, Liz Nell, co-founder and chief revenue officer of The Graide Network, noted that its TAs aren’t just “hired hands.” They’re developing educators eager to get some hands-on experience.

Don’t Call Us Uber

As director of product at WyzAnt, Erika Warren was quick to qualify what marketplace really means for education startups like hers. “We’re not the Uber of tutoring,” she said. “We have to challenge the assumption that marketplace automatically means the commoditization of a product.” In fact, she added, WyZant creates flexibility and options for its users, turning the traditional education model on its head. With the ability to choose the tutor that’s right for her particular needs, the student is in control.
In addition to bad Uber associations, APL Founder and CEO Kathleen Gibson noted her company must deal with the fact that “adjunct” itself has become a pejorative term. She argued that this is a trusted model going back to guilds and the origins of universities, which uniquely affords cutting-edge talent to fill faculty skills shortages.

Growing Supply to Attract Demand

When launching a two-sided marketplace, one key challenge is that in order to attract service providers, you need to prove there’s demand—but you can’t create much demand without service providers. Gibson referred to loopholes around this chicken-or-the-egg conundrum as “faking the chicken.” After building out its supply of adjuncts, APL now avoids selling this labor pool to higher-ed administrators or HR departments, but instead directly to the academic wings of its university clients. Similarly, Nell’s team at The Graide Network has found greatest success with grassroots outreach to educators versus going through administrators. “When we’ve gone directly to teachers, they seem to get it,” she said. “But when the message is being delivered by a principal, it comes across as just more work being handed on down.”

The “Happy Mom” and Other Viral Marketing Strategies

In a discussion of the best growth-hacking tactics, all panelists emphasized the importance of word of mouth. Herskovic dubbed this “the happy mom” effect. “Moms trust moms and dads trust dads,” she said, adding that her team conducts exit interviews with all parents and creates video testimonials that get posted online. Mntors.com’s Le may have had the most clever tactic: His team creates free career advice webinars that attendees must share on social in order to attend.

Quality Control in a Higher-Stakes Game

When the service you’re selling is education, quality control is paramount. As Herskovic noted, education involves far higher stakes than delivering hot dogs. Early on at Admissionado, she was cc’ed on every single email so she could simply watch. Today, the company rigorously screens its advisors and partners them with other advisors to create a system of checks and balances.
Likewise, all 80,000 WyZant tutors have been manually vetted by a team member, not leaving such an important piece of their value chain to automation. These measures are fairly expensive, but all panelists felt they were well worth the cost.

Amanda Nyren (@itsaaamanda) is a Chicago-based content marketer who’s worked at Curiosity.com and Groupon.

The Mayor and Italy's Prime Minister Matteo Renzi Jogging on the Lakefront


WiSTEM Proxfinity Team presents at Technori


Cubii gets funding from Healthbox, Tullman, Shekhawat

Cubii gets funding from Healthbox, Tullman, Shekhawat

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Cubii, a startup that aims to help office workers get some exercise without leaving their desks, is graduating beyond Kickstarter.
The company, which came up with a compact elliptical machine that fits under a desk, has raised more than $1 million since three undergrads at the University of Chicago launched it in 2013.
Investors include Healthbox, the health care accelerator in Fulton Market where Cubii is based; Howard Tullman, CEO of 1871 and a longtime startup investor; Jai Shekhawat,founder and former CEO of Fieldglass; and David Appel and Joel Appel, former top executives of Orange Glo International.
Cubii brought in $300,000 on Kickstarter in late 2014, topping its initial $100,000 goal. But the startup had a hard time getting the 3,000 machines that had been ordered into the hands of eager Kickstarter customers. To fulfill the orders, it raised $300,000 from private investors last year. Cubii then received another $350,000 to build more machines, which are produced by a contract manufacturer in China.
CEO Arnav Dalmia said all the Kickstarter orders were shipped by year-end. "We sold out more quickly than we imagined,” he said.
He said sales have risen from about 150 units per month to about 500 a month in the past quarter. The machines, which cost $347, are sold only on the company's website, mostly from word of mouth. Now he hopes to double production to 1,000 a month.
He also wants to sell the product directly to companies as a way to improve employee wellness and health. Cubii has nine employees, five of them in Chicago, three in India and one in China.

IVCA Profile: WiSTEM is the Women in Tech Program Based at ‘1871’

IVCA Profile: WiSTEM is the Women in Tech Program Based at ‘1871’
March 2, 2016
In July of last year, the highly anticipated WiSTEM program was launched at “1871” (the technology and business development hub at the Merchandise Mart in Chicago). The goal of the program, an anagram for Women in Science, Technology and Math, is to connect women entrepreneurs to capital, technology and community. WiSTEM just finished its first 16 week program with their start up partners – which they call “cohorts” – in the fall, and had its first showcase of start ups in January of 2016. The next group of start ups will begin the Spring session next week.
One of the key moves that WiSTEM made as part of their launch was to connect and partner with Ms. Tech, a membership organization for women-in-technology ventures. The co-founder and president of that organization, Nicole Yeary, was named “Co-Facilitator” of WiSTEM and moved the operations of Ms. Tech to 1871. WiSTEM also has support from a extensive network of local and national initiatives, including Google for Entrepreneurs’ #40Forward initiative, and is supported by the Lefkofsky Family Foundation and the Motorola Mobility Foundation. Nicole Yeary represents the organization in the following IVCA profile of WiSTEM.
IVCA: What factors motivated the founding of WiSTEM?
WiSTEM: The goal in creating WiSTEM has been to produce a purposeful and long lasting program that meets real needs and creates impact oriented opportunities for women. That’s why WiSTEM focuses on three critical areas for women entrepreneurs – capital, technology, and community. Chicago is the global leader for start-ups founded by females, and we hope to build on that to facilitate opportunities for even more inclusion in the tech and entrepreneurial communities.

IVCA: What principles of Ms.Tech did you apply to facilitate WiSTEM?
WiSTEM: Over the past six years, the Ms. Tech community has developed to become a forum for early, mid-­career and executive­ level individuals who are committed to developing themselves as leaders through education, mentorship, networking and knowledge sharing. Our vision aligned with these core values, and we continue to facilitate a learning community that provides women in technology ventures and innovative companies with inspiration, knowledge and connections to reach their full potential. Finally, it’s our mission to remove unjust obstacles for technology innovators, and our partnership with 1871 has helped to bolster that mission.

IVCA: Your three guiding principles are connecting women tech entrepreneurs to capital, providing supporting tech for them and community. Given the many steps it took to launch your program, how has the focus been on those guiding principles?
WiSTEM: The curriculum learning objectives hit on all three areas of technology, community and capital. First, we have WiSTEM sessions on leadership every week where we cover topics around business acumen and relationship building. We also recognize peer­-to­-peer learning and knowledge sharing is critical on their journey, so every week we host a ‘Cohort Confab’ that provides the space to candidly ask for help with present challenges and celebrate their successes together.
When it comes to connecting to capital, we ready the entrepreneurs with pitch training and guide them through preparing a fundraising strategy. This not only helps the entrepreneurs perfect their pitches, but also includes a parallel benefit of meeting guest judges who happen to be investors, potential advisors and industry leaders.
In relation to technology, our network of expert mentors hosting workshops and office hours help tremendously in teaching the entrepreneurs in WiSTEM the critical components of technology in order to hire the best team and to make the best decisions when it comes to running their businesses. And this is all in addition to events and programming that exist at 1871, which make the programming that much more robust.
IVCA: How did the partnership with Google #40Forward take the program into a new realm? What does that resource provide besides monetary incentive?
WiSTEM: Google has been an amazing partner to women entrepreneurs at 1871. In addition to Google’s #40Forward initiative being one of the original sponsors of WiSTEM, 1871’s partnership with Google for Entrepreneurs has created amazing opportunities – including participation and funding from the Google Demo Day, access to the Blackbox Connect program, participation in Google Exchange programs, and access to educational opportunities with Google’s experts – for WiSTEM and other women entrepreneurs at 1871.

IVCA: What was the criteria for your first class of 13 entrepreneurs, which began last fall? What do you think they all had in common?
WiSTEM: There were two main qualifications – the companies must have at least one woman as a co­-founder, and the companies must be technology enabled. The first cohort includes women running companies that are focused on a variety of industries and that are at varying stages of development. What the first cohort’s members have in common is a focus on participating in and growing a community that advances women entrepreneurs.

IVCA: You had your 'demo day' last month, what positives came from that event, and what did WiSTEM learn from the caliber and indications of the entrepreneur presentations?
WiSTEM: Over 200 individuals from the community showed up to the WiSTEM Showcase. WiSTEM’s entrepreneurs were able to pitch their businesses, making connections with potential partners, advisors, and investors. A significant positive from the showcase event was the boost in applications for the next cohorts. After seeing the program come full circle, there was no doubt the WiSTEM program had been a significant value to the entrepreneurs presenting – and frankly we learned a lot. Not just from the presentations at the showcase, but before, throughout and after the program.
We learned that one all day weekly program was better than splitting chunks of program time three days a week. We learned that hands on, lab-­oriented sessions were more valuable over pure workshop sessions. Working through the pivots, we observed the ‘eureka’ moments, the cohort camaraderie, and the growth in leadership. The confidence and ability to articulate a business case for the problems in their businesses that they had built-in – and to find a solution for them – has been an incredible experience. I felt lucky to have shared the entrepreneurial journey with each one of the founders.
IVCA: Studies have concluded that women are much more efficient with start up capital than their male counterparts. To what do you attribute that efficiency, and how can that be an advantage for investors?
WiSTEM: While it’s true that it has been published that women-­led start ups generate 12% higher revenue, and women­-led private technology companies generate a 35% Return On Investment, it’s also still true that 93% of investor money goes to startups founded by men, according to Business Week.
Rather than speculate, I’ll point to what we do know – that there are a number of factors and variables that play a role in the success or failure of any start up. Every investment on a start up is a bet on the entrepreneur and team. So considering what we do know, I would indicate that any investor not funding woman-­led startup companies is at a disadvantage, and missing out on high growth opportunities by not intentionally seeking out diversity in their portfolio. I would discourage looking through the gender lens, but encourage opening up new channels to discover a diverse group of high potential entrepreneurs building high growth technology companies.
IVCA: We're only a couple generations away from the equality movements that evolved women into businesses of all kinds, plus the notion of investing and entrepreneurship has been entrenched for centuries with the male power base. What factors do you think will equalize this field in the next two generations going forward, for example?
WiSTEM: What it takes to launch and build a high-growth tech start up is different from what it takes to advance within a corporate hierarchy. Recognizing that high growth start up companies are essential to job creation and economic growth makes this an economic issue, not a gender issue.
We will start seeing more exits led by women-­led start up founders, which will help perceptions in several ways. The women founders of those companies will become role models, advisors, and mentors to subsequent generations. Those founders will also reinvest in the next generation of women-led start up companies. And of course, gaining more women on both sides of the table, in general, will be a significant way to gain equality going forward.
IVCA: What would you tell the membership of the IVCA about the WiSTEM, that you think makes the concept viable and most desirable to investors?
WiSTEM: Upon entering WiSTEM, each company has gone through a rigorous application process. Throughout the program, start ups become ‘investor ready’ – founders are armed with tools, resources and knowledge to become more effective and efficient. They also build on and expand their network of industry experts, and they solidify a board of advisors.
All of these elements help the companies make the best business case for investment. – WiSTEM meets companies where they are. While we have a curriculum that focuses around our three pillars of community, technology and capital, we are tuned into high­-level vision and short­-term tactics to guide each company in exceeding goals and reaching set milestones. 

For more information about the WiSTEM, click www.1871.com/wistem

Midnight


Tuesday, March 29, 2016

How college admissions has turned into something akin to ‘The Hunger Games’

How college admissions has turned into something akin to ‘The Hunger Games’

   

Anyone remotely involved in the college admissions process in the past few decades knows it has become, for too many students, high stakes and very, very high anxiety. In this piece, a college admissions counselor looks at the reality and makes a call for a new approach. This was written by Brennan Barnard, director of college counseling at the Derryfield School, a private college preparatory day school for grades 6-12 in Manchester, N.H.
By Brennan Barnard
“I don’t know how to say it exactly. Only. … I want to die as myself. … I don’t want them to change me in there. Turn me into some kind of monster that I’m not. Only I keep wishing I could think of a way to … to show the Capitol that they don’t own me. That I’m more than just a piece in their games.” — Peeta Mellark, “The Hunger Games”
In 20 years of counseling students, I have witnessed a seismic shift in the approach toward college admission.  As application numbers have increased, so has the collective angst around college admission.  With sinking admission rates, high-stakes testing, rising tuition costs, unmanageable debt and an unhealthy fixation on the handful of most selective schools, we are debilitating the next generation of learners.  The message we inadvertently send: A prestige acceptance is better than a joyful childhood.
In an ideal world, college preparatory education would encourage students who crave knowledge, seek community engagement, desire connection and live their values.  We say we want our children to feel secure, be inspired and take risks with their curiosity.  The reality of “Hunger Games” comes closer to the truth, where students battle to survive in application pools seeming to demand perfection.
How is such a terrifying metaphor even possible?  How did we deteriorate to where the college admission process unwittingly transforms children into warriors who are but shells of their former selves?  There is a cruel paradox.  Learning is a fundamentally collaborative enterprise (as embodied in elementary school), but this system demands that it be competitive, and that is what destroys the authenticity we say we wish from our children.  The apparent victors in this game are the institutions — ever fearful of losing ground to their competitors — driving the competition, and watching as students battle with themselves and others to persevere.
In a race to be the most selective, attract the best students, field the best athletics teams and project a polished image, colleges have lost sight of the best interest of those they wish to serve.  National rankings, alumni giving, and exclusivity cause schools to boast about how few students they accept, and how many valedictorians, class presidents, sports captains and school leaders they attract and often deny.  Marketing materials and information sessions tout the accomplished musicians, volunteers, world travelers and innovators that fill the colleges’ incoming classes.
The message to students is fundamentally Darwinian: Only the fittest survive, rising to the top in a game to endure an application process that focuses on external perfection rather than internal depth.  The cruel logic plays out despite the best intentions of individuals because the system itself is to blame.  The more applicants a school can deny and the more accepted students who enroll, the higher ranked a college is.  By accepting huge percentages of candidates through early plans, encouraging resumes and flawless transcripts, a system prevails where only the fittest survive the most demanding curriculum available with the fullest schedule while being more unique than the classmates fighting next to them.
It becomes a race for who can grab the rarest opportunity fastest and seemingly juggle it all, risking failure — but not such failure that they will show weakness, vulnerability or breakdown.  Frustrated and conflicted, high school counselors and college admission officers are but messengers, gamemakers contractually beholden to the wishes of school boards, trustees, presidents and superintendents who sit at the “Capitol” demanding increased selectivity and prestige in the pursuit of perceived excellence.
Only the most confident and secure students — or perhaps hardened — emerge unscathed, those who despite the pressure and hostile odds, can remain true to their interests, values and sense of self.  I have found that the young men and women who thrive in college are those for whom the college search was one of introspection, exploration and personal development rather than a contest.  The applicants who focus on fit, program and community as they consider higher education are the individuals who truly find happiness. As parents and educators, we must examine ourselves and what we are doing to the childhood of our kids. Is life so grim, so desperate?  Is the future that scary or do we trust that there are many paths to fulfillment, happiness and success?
This is a call to action for students and parents in districts everywhere.  Don’t simply wait for the “tide to turn,” join the rebellion.  Refuse to play the game and allow it to change you.  Don’t become an unrecognizable, packaged “monster.”  College campuses have long been instigators of positive social change, and this moment is no different.  Whether university investment holdings, campus policy issues or racial inequality, it often takes students unifying against the status quo and speaking truth to power to transform established and damaging practices.  This year we have witnessed non-violent student protests effect change at schools as small as Amherst College and as large as the University of Missouri.   To initiate change, students and parents must band together and take a stand, declaring:
We will NOT …
… believe that success in life is dictated by only attending colleges with admission rates in the single digits.
… be recruited athletes as ninth-graders and commit to a university before our voice has changed.
… assume obscene debt and be forced to live in our parents’ basement into our forties.
… fill our teenage schedules with activities allowing zero time for purposeless play.
… let flawed, unintelligible rankings determine our college choice.
… sacrifice creative arts courses and other intriguing electives in pursuit of AP everything.
… allow one test, taken too early on a Saturday morning, define us and crush our dreams.
… apply to 20 schools because the admission office has waived the fee and encouraged us to apply.
… search for an Early Decision school just because it increases our odds of acceptance.
Instead we WILL….
… embrace high school for the experience that it is without making every decision about the impact on college admission.
… challenge ourselves academically and socially and take healthy risks while staying balanced.
… consider a range of colleges and expand our world.
… make mistakes, try, fail and try again.
… contribute to and serve our community because it is a good thing to do and not to build a resume or seek reward.
… acknowledge that our journey is not always linear and that there is more than one path that leads to our goals.
… remain true to our values and live authentic, grounded daily lives.
… sleep, laugh and play.

'Good Food' movement grows up, ges paid

Imagine standing on a stage in front of hundreds of strangers. You need their money to help finance your dream business. You have seven minutes to make the pitch.
You'd be nervous, right?
"The trick is faking it. I was nervous as hell," said a grinning Susan Fink, founder and, for now, sole employee of Karma Kombucha.
Fink was one of a handful of entrepreneurs pitching to investors at the Good Food Festival's financing and innovation conference Thursday — the one day of the three-day trade show that's dedicated to connecting business owners with investors. From crepes to craft cider, all of the businesses seeking money were aligned with the festival's definition of "good food" — somewhere in the mix of local, healthy and sustainably produced.
That such a day even exists is a sign of how times have changed. Increasingly, consumers want food they consider to be healthy and socially responsible while also affordable and delicious. The shift has forced large-scale change throughout the food supply chain, and the dollars have followed.
"There's a lot more money in the room and the deals are far more sophisticated, in part because of the (Good Food Business Accelerator)," said Jim Slama, founder and president of FamilyFarmed, the nonprofit that organizes both the Good Food Festival, which began in 2004, and the 2-year-old accelerator program.
Housed in 1871, the buzzing tech incubator in the Merchandise Mart, the six-month food business accelerator program connects its participants to a network of mentors and resources and helps them to refine and grow their businesses.
For some, like Ryan Jones, founder of Gotta B Crepes, the program teaches how to articulate the business side of a food passion.
"We're all makers, but how do you take that passion and make it an enterprise?" said Jones, 34, who has a tattoo of his company's logo — a bumblebee making crepes — on his right hand.
The accelerator program also provides training, delivered by Second City improv professionals, on how to deliver a pitch with confidence and not freak out in front of big crowds.
Shortly before their presentations, Fink, 56, and Rachel Bernier-Green, 28, founder of Laine's Bake Shop, looked at one another in a moment of shared anxiety. Then they raised their hands in the air and frantically shook their fingers. Both women started laughing.
It was a Second City-taught method to stay loose.
"It's all about telling your own story. You know it better than anyone else," Fink said. "And it's not going to be perfect. Just be yourself."
Fink used to work for Kraft Foods, leading an innovation team in the research and development department, before being laid off in 2010. Before losing her job of 26 years, Fink tried kombucha, a fermented tea, and was impressed with how it helped her stay healthy as she trained for a triathlon.
Fink began brewing kombucha in her Mundelein home, trying to improve upon the taste. When she lost her job at Kraft, she had a decision to make.
"Do I want to go paycheck or do I want to go passion?" said Fink, a line she would later deliver perfectly to the crowd of investors.
Fink and her wife, Michele Dziaba, another former Kraft employee, spent about $500,000 of their own money, retirement savings mostly, to build a kombucha brewing facility just a few blocks from their home. Fink works seven days a week, producing about 750 gallons of certified organic Karma Kombucha per month, which is now sold in select Mariano's, Whole Foods Market and Heinen's Fine Food stores in the Chicago area.
Now, Fink's looking for about $150,000 in debt funding to hire two people to help grow the business.
From 2003 to 2014, retail sales for natural and organic food have steadily risen to represent more than $105 billion, according to SPINS, a Chicago-based market research firm that tracks data on the organic food industry.
From an investor perspective, it can pay to get in early on such companies, which have potential to be acquired by larger food companies that may not have the talent or desire internally to develop such products, said Mark Thomann, CEO of River West Brands and a member of the Good Food Festival's steering committee.
"You won't see PepsiCo try to develop a kombucha," Thomann said. "It's much easier for them to go buy one."
Victor Friedberg, managing director of S2G Ventures, a Chicago-based venture capital firm focused on food and agriculture companies, said the opportunities for investment extend beyond the finished products.
"Our fundamental thesis is the consumer has changed and that's created a ripple effect up and down the food supply chain," Friedberg said. "It's all fertile ground for investors."
And that's good news, too, for relatively small food businesses trying to grow up.
Chicago-based Kitchfix, already is on the brink of selling grain-free waffles and paleo granola in stores throughout the country. Josh Katt, Kitchfix CEO, was at the conference Thursday, asking for about $1 million in equity financing to help with national distribution.
What's the end game? Selling to a larger food company someday?
"I'm just in love with growing a company with values," Katt said. "Not to sound corny, I definitely want to make money. … But I'm just trying to keep my head to ground and make good products."

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