This document provides an overview of the growing school as a service market. It discusses the history of outsourcing in higher education from the 1970s onward. It then summarizes the growth of online programs at non-profit universities from 30 programs in 2008 to over 5,000 programs by 2012. Drivers of the school as a service market are outlined, including rising costs, technological advances, and increased competition. The document profiles several companies in the space and notes over $100 million of venture investment. It concludes by introducing an upcoming panel discussion on school as a service featuring executives from leading companies in the field.

1. CONFIDENTIAL – Christopher Nyren, EducatedVentures
presents:
for:
July 2014
Schoolas a ServiceMarket Overview

2. 27/7/2014 CONFIDENTIAL – Christopher Nyren, EducatedVentures
1970 1990 2000 2010
History of HigherEdOutsourcing
IT Support Institutional and Operational Support Enrollment
Management
Academics
Information
Systems
Management
Finance and
Accounting
Dormitories Financial Aid
and Student
Loans
Marketing &
Recruitment
Online
Platform
(LMS)
Online
Program
Management
CRM
Document
and Data
Storage
Human
Resources
Food
Services
Coaching and
Retention
Tuition
Benefits
• XACT Telesolutions (1976)
• Infosys (1981)
• ACS (1988)
• Collegis / SunGard (1996)
• Ed. Housing
Services
(1987)
• Aramark
(1959)
• AVI Food
(1960)
• Sallie Mae
(1972)
• Nelnet
(1977)
• ECMC
(1994)
• Royall & Co
(1989)
• ESM (1995)
• QuinStreet
(1999)
• Blackboard
(Angel,WebCT)
• eCollege
(1996)
• D2L (1999)
• Moodle (‘99)
• Sakai (2005)
• Instructure
(Canvas) ‘08
• Embanet
(1995)
• Deltak
(1996)
• Bisk (1997)
• Academic
Partners
(2007)
• 2U (2008)
• All Campus
(2010)
• Hobsons
• Leads360
• Edcor (1981)
• EdAssist
(2004)
• InsideTrack
(2001)
• Starfish(2007)
Back End Front End Academic Core
Source: Author, Parthenon Group

3. 37/7/2014 CONFIDENTIAL – Christopher Nyren, EducatedVentures
OnlinePrograms Then
In 2008, there were only 30 not-for-profits that were
fully online with at least one degree program.

4. 47/7/2014 CONFIDENTIAL – Christopher Nyren, EducatedVentures
By 2012, there were over 500 not-for-profits that were fully online with an average
of 10 programs each, creating a universe of 5,000 potential programs.
Utilizing open source, free LMS products like Moodle, Sakai or Canvas, low cost
SaaS solutions from MoodleRooms, rSmart and Instructure, or even higher cost
software from Blackboard or Desire2Learn, the not-for-profits have moved online
OnlinePrograms Today

5. 57/7/2014 CONFIDENTIAL – Christopher Nyren, EducatedVentures
Not-for-ProfitsTaking Share
 Online education is a $30 billion market growing 15% per year
 As the number of students online continues to grow, for-profit’s
enrollments are flat to declining -- not-for-profits are gaining share
 The number of not-for-profits online has grown from 30 to 500,
yet, it’s the 50 working with the leading three players that capture
the majority of enrollments today
 These partnerships are still nascent and the models still evolving
 But over time, turnkey tuition partnerships with leading national schools are less defensible:
– Low cost, open-source solutions are gaining share in instruction, design and scheduling
– The best branded institutions will move core education functions in-house and push for a lower tuition
share or otherwise defect from their partnerships
– Defections have been low, but few contracts have reached their 7-10 year term
 To that end, EV would target the following alternative models for investment:
– More targeted service and sustainable revenue share model (i.e. AllCampus)
– Package as technology-driven fee per service / SaaS model (i.e. CampusLabs, Civitas)
– Establish ownership over key assets (i.e. Orbis, Synergis)
Online Student Growth
‘10-’15 CAGR 11%
‘10-’15 CAGR
-1.5%
‘10-’15 CAGR 13%
Source: Eduventures, Author

6. 67/7/2014 CONFIDENTIAL – Christopher Nyren, EducatedVentures
School as a Service Market Drivers
There is a growing awareness of the quality and access-enhancing potential of online education among both faculty and
administrative personnel
There are a number of factors driving traditional school’s growth online.
Educational Quality
Rise in costs
Technological
advancements
Increasing number
of graduates
Partnerships with
non-profit schools
Reduction in state
funding
Greater legitimacy
Focus on non-
traditional students
Increased
competition
New learning
environments
There is a renewed emphasis by policy makers on increasing the number of U.S. college graduates, driven by a weak
employment market and stagnant wages
Technological advancements have dramatically improved the richness and experience of online learning
Reductions in state funding for public institutions and shrinking endowments at some private institutions are forcing colleges to
consider new sources of revenue
The dramatic rise in the cost of a post-secondary degree is driving students to demand and colleges to offer less expensive
degree options without sacrificing academic quality
The Department of Education (DOE) has taken steps to ensure the non-profit sector can continue to partner with for-profit entities
in order to enhance enrollment
A tech-savvy generation of traditional-age students who grew up using the internet and are comfortable learning online is
increasingly demanding a technology enabled learning environment
Top-tier institutions like MIT, Stanford, the University of Southern California, Georgetown, and others are increasingly embracing
the technology, lending greater legitimacy to the online medium
Public and private institutions have been placing a greater emphasis on the importance of serving the educational needs of non-
traditional students
Increased competition for students across all types of institutions is necessitating expansion into the online realm
Source: First Analysis, Author

7. 77/7/2014 CONFIDENTIAL – Christopher Nyren, EducatedVentures
School as a Serviceis
a Rapidly Growing Market
7
Institute for
Professional
Development
(origins of the
Apollo Group)
Deltak
founded
Orbis launches
RN partnerships
Embanet
founded as e-
MBAnet
in Toronto
1971 1993 1996 2001 2003 2012
Acquired by
Pearson for
$650mm
(2012)
LearningHouse
founded
2008
2U (2tor)
founded
Acquired by
Wiley for
$220
(2012)
KKR /
Weld North
NA
(2012)
Investment
by LLR of
$20mm
(2012)
Over
$100mm
of venture
investment
Incubated
University of
Phoenix
New models
established
Over
$50mm
of venture
investment

8. 87/7/2014 CONFIDENTIAL – Christopher Nyren, EducatedVentures
Christopher Nyren founded Educated Ventures at the end of 2011 around several consulting clients,
including one of the largest media companies in the world as well as one of the largest foundations in
the world. More recently, the firm has expanded its investment banking work, completing in 2012
alone three separate capital raises totaling $30 million and two successful strategic M&A processes.
Christopher also founded Educelerate, a network fostering start-up ventures focused on education
technology and innovation. We hold monthly events involving a membership base of over 600 in
Chicago and Los Angeles. Podcasts and blog content can be found at www.Educelerate.com.
Christopher spent the prior four years helping to build the Corporate Development & Global Strategy
team for Apollo Group, the owner of the University of Phoenix and largest for-profit educational
company in the world. During this time, he was involved in the creation of Apollo Global, a $1 billion
joint venture private equity fund with the Carlyle Group. Over his career at Apollo, Mr. Nyren was the
primary corporate development professional on every acquisition and investment completed by the
company and the fund (totaling four domestic and international deals and over $750 million of
aggregate consideration).
Christopher is on the board of GetSet and Wellspring Education and in investor in AllCampus, cielo24,
DecisionDesk, Flinja, GetSet, Learning.com, MentorMob and Presence Learning.
Christopher has also worked in private equity, including the education and services focused investors
LLR Partners where he completed an investment in a vocational post-secondary education company.
He started his career with the education and services coverage team at investment bank Credit
Suisse. Mr. Nyren graduated magna cum laude, Phi Beta Kappa from Lake Forest College and
received his MBA from the Wharton School of Business of the University of Pennsylvania.
About theSpeaker
cnyren@educatedventures.com

9. 97/7/2014 CONFIDENTIAL – Christopher Nyren, EducatedVentures
We benefit from a direct channel to emerging ideas and entrepreneurs through the creation of
Educelerate, a national education innovation network seeking to build an accelerator program.
This would be differentiated from other regional and non-industry focused groups through:
About Educelerate
1) Networking – investing in quality monthly event programing and
leveraging social media to build an efficient, yet integrated
community of potential employees, partners, mentors, and investors
2) Business Development – aligned with local leading strategic players
to inform entrepreneurs of buyer needs to guide product
development and secure potential customer funding
3) Mentorship – entrepreneurs are matched with advisory board and
other industry experienced members, to provide regular feedback
and support around key business issues
4) Colocation – we have partnered the collaborative work space
Catapult, but are looking to create out own space with tenant rents
subsidized by equity and strategic sub-tenants (for hoteling staff)
5) All Year – rather than a concentrated summer program, we provide
a lighter touch support model throughout the year, with monthly
panels, workshops, podcasts, blogs and an annual conference
August
S M T W T F S
1 2 3 4
5 6 7 8 9 10 11
 13 14 15  16 17
18 19 20 21 22 23 24
25 26 27 28  30 31
www.educelerate.com

10. 107/7/2014 CONFIDENTIAL – Christopher Nyren, EducatedVentures
EducelerateIX: Schoolas a Service
 When: 6:00pm February 21, 2013
 Who:
Craig Pines - CEO, Deltak EDU
Steve Fireng - CEO, EmbanetCompass
Dan Briggs - CEO, Orbis Education
Joe Diamond - CEO and founder, All Campus
and moderated by Corey Greendale Research Analyst, First Analysis
and author of the report, "School as a Service: the next big thing in the
education industry"
 Where:
On-ground - Google Chicago, 20 West Kinzie, Chicago, IL
Online – Live Google Hangouts On-Air; podcast at Educelerate
Given our industry leadership and unparalleled relationships in this market, we organized
a panel discussion featuring nearly every industry leading executive