I have transferred the sports talent pipeline to the tech industry, developing a robust tech talent pipeline while increasing tech literacy for everyone. I have bootstrapped to make sure it works and now ready to raise pre-seed capital for c-suite and branding followed by series A for expansion to 10 major cities.
Company Overview: Currently 2 locations with state of the art technology
•2009 - Founded as IT training and consulting business
•2012 - Started pipeline program for 13-17 year olds
•2017 – 2500 sq/ft pilot tech center in a small town in Western NY
•2018 – Pilot expanded to 5,000 sq/ft
•2020 – 3700 sq/ft tech center in Rochester, NY
Mission:
Everyone, everywhere has 24/7 access to state-of-the-art tech
Vision:
Develop a robust tech talent pipeline while increasing tech literacy of the entire workforce
The problem:
1.5 million jobs in IT, only 55k graduating per year with a degree (this is pre-pandemic - much bigger crisis now)
Our solution:
Use the same pipeline structure as the sports industry (90k people play collegiate basketball - only 300 pro players a year)
Market Opportunity:
Market growth is ACCELERATING at a CAGR of more than 8%, estimated incremental IT training growth for 2020-2025: $10.59 billion, The market is FRAGMENTED with only a few major organizations involved as a side project and the risk of disruption is HIGH
Amazon committed $900 million to identify and train its own workforce to code - the current tech education system is not keeping up with demand so the industry giants are trying to figure out how to create their own tech talent pipeline.
Products and Services We Offer:
24/7/365 access to a community with state-of-the-art technology with day passes, memberships, pipeline programs, and events.
Proprietary Software:
Skills verification checklist for each pipeline participant to add to emails and LinkedIn profile
Checklists can be set up for sponsor or company employees and applicants
Tracking and reporting of local progress and tech literacy to attract major companies
Key Indicators:
For every 10 people who tour, 7 engage in some way and 4 for life. When we are fully staffed we can increase the conversion of lifetime members.
Focusing on individual interests attracts a wide range of demographics:
50-60% female
45-55% minority
55-60% low income
40-50% neuro diverse
35% under 18
35% 18-50 years-old
30% over 50 years-old
Competetive Landscape:
Under 18 years old: STEM Intiatives - Once a year and targeted demographics, there is no progression
18-50 years old: Bootcamp style workshops - Like teaching 30 people to play piano at once, causing more people to stay away from tech training
Over 50 years old: Reskilling workforce development classes - Very basic or extremely advanced, high drop out rate
Colleges and Universities: Designed to weed people out and can’t keep up with constant changes in technology - very few people are ready for this level due to lack of a pipeline
Past/Current Traction:
| Year | Rev | Bootstrap Contracts | FTE Payroll | Ave Monthly Customers
| 2017 | 101k | 88k | 0 | 15
| 2018 | 103k | 80k | 1 | 25
| 2019 | 196k | 50k | 1 | 32
| 2020 | 155k | 100k | 2 | 10 Closed for 5 months due to pandemic
| 2021 | 200k | 0 | 3 | 73
5 YEAR PRO FORMA: conservative -10%, home run: +30%
| EACH LOCATION | Year 1 | Year 2 | Year 3 | Year 4 | Year 5
| Revenue | $786,494 | $2,797,683 | $3,451,218 | $3,623,779 | $3,804,968
| Direct costs | $868,190 | $1,054,846 | $1,058,096 | $1,111,001 | $1,166,551
| Gross margin | -$81,696 | $1,742,837 | $2,393,122 | $2,512,778 | $2,638,417
| Gross margin percent | -10% | 62% | 69% | 69% | 69%
| Operating Ex | $988,325 | $1,072,884 | $1,105,561 | $1,160,839 | $1,218,881
| Income taxes | | $0 | $33,498 | $64,378 | $67,597
| Total expenses | $1,856,515 | $2,127,730 | $2,163,657 | $2,271,840 | $2,385,432
| Net Profit | -$1,070,021 | $669,953 | $1,287,561 | $1,351,939 | $1,419,536
| Net Profit/Sales | -136% | 24% | 37% | 37% | 37%
| Cumulative Operating Profit | -$1,070,021 | -$400,068 | $1,957,514 | $2,639,500 | $2,771,475
Raising pre-seed/seed stage of 3 million for c-suite, branding, and marketing followed by Series A for 2 years of operating expenses for 10 locations. Exit plan is IPO or acquisition by one of the major tech companies.