NVCA–NewSchools K-12 Education Infrastructure Fund
Financial and Human Capital Will be Invested in Education Entrepreneurs
NewSchools Venture Fund and the National Venture Capital Association (NVCA) have partnered to launch the K-12 Education Infrastructure Fund. The Fund will be a $10 million fund to be invested over a four-year period in early-stage for-profit and nonprofit organizations that aim to address the needs of underserved students in public schools. The Fund will focus on two areas of critical need in the development of high-performing schools and school systems: human capital and performance tools. These investments may include, but are not limited to, new recruitment training programs for teachers and principals, assessments and data systems to guide instruction and inform parents, and open-source solutions for curriculum and assessment.
The Fund will leverage its investments in two ways. First, NewSchools is actively seeking matching dollars that will double the pool of capital in The Fund. Second, The Fund will be closely associated with NewSchools Fund III, which currently has $60 million in assets. It is anticipated that the NVCA – NewSchools K-12 Infrastructure Fund and NewSchools Fund III will strategically partner within and across investments.
The Fund will support six to ten new ventures, with average investments of $2-3 million per venture. Some investments will be smaller, enabling entrepreneurs to create business plans that The Fund may not ultimately pursue. But for every portfolio investment, NVCA/NewSchools will hold a board seat and work actively with the management team to create scalable, high-quality, and sustainable enterprises that have a demonstrable positive effect on student outcomes in areas of high need.
The Fund will be a nonprofit, "evergreen" fund – that is, subscriptions into The Fund will be made as charitable, tax-deductible contributions. Returns from investments in for-profit enterprises will be recycled into The Fund or into a successor fund. Direct investment alongside The Fund will be open to all investors in The Fund.
How to Invest
To invest in the NCVA–NewSchools K-12 Education Infrastructure Fund, please fill out the appropriate pledge form.
Form for individual venture capital donors
Form for venture capital firm donors
Please return completed forms to the National Venture Capital Association:
By Fax: 703-524-3940, Attn: Emily Mendell
By Email: emendell@nvca.org
By Mail: NVCA–NewSchools Education Fund, 1655 Fort Myer Drive, Suite 850, Arlington, VA 22209
Engagement, Governance, and Communication
The Fund is a vehicle for aggregating philanthropic dollars aimed at K-12 public education. The Fund will create high leverage and high impact by directing venture capital into promising startup organizations in areas of K-12 education that are starved for innovation. The Fund is also a vehicle for connecting NVCA members with these startups as board members, advisors, and coaches for committed and passionate education entrepreneurs.
Decisions about investments will be made by the Board of Directors of NewSchools Venture Fund upon advice from its Investment Committee. By virtue of the creation of The Fund, a designated member of the NVCA Board of Directors will hold a seat on that Investment Committee. A representative from the NVCA staff will have observer rights on the Investment Committee.
NewSchools will report quarterly on the progress of the Fund. Outcomes will be measured by the number of teachers and students impacted, demonstrated impact on student achievement, teacher effectiveness, and other goals appropriate to the enterprise. In addition, financial sustainability (nonprofit) and profitability (for-profit) are central metrics for The Fund’s portfolio.
Subscriptions and Fees
Subscriptions may be made in any amount paced over the four years of The Fund, with a minimum of one quarter of the total subscription made by December 31, 2008. Management fees for The Fund will be 2% per year. Download the Subscription Agreement here.
Contact NewSchools Venture Fund
To find out more about investing in NewSchools via The Fund or otherwise, please email us or call us at 415-615-6860.