1. Despite increasing interest from capital, education
is comparatively starved.
@mpstaton

2. 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

3. $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

4. Venture Capital helps create industries.

5. Where do we put our money?

6. We act like money grows on trees....

7. $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

8. 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.

9. 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.”

10. Let’s simplify
Migratory Productive

11. 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.

12. Migratory Productive VisionaryExtractive
We need to think of capital as having intentions

13. What if we could reorient capital?
Migratory Productive VisionaryExtractive

14. What if we could reorient capital?
Migratory Productive VisionaryExtractive

15. What if we could reorient capital?
Migratory Productive VisionaryExtractive

16. What if we could reorient capital?
Migratory Productive VisionaryExtractive

17. Inspiring work Make a profit
An inappropriate dividing line.

18. Blur the line
let’s refuse “OR”
Inspiring work
Make a profit
“AND”

19. $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...

20. Emergence of Crowdfunding.

21. 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.

22. What if we could open up investment into visions
for the future?
inspire.vc
What if we could....
?

23. Thank you.
@mpstaton