What is the idea?
The startup idea is to establish an online video training coaching service for fresh graduates before they join an organization. The platform will focus on providing online training to college graduates and others who have just completed professional programs.
Education industry worldwide is estimated to be $ 5.34 trillion. In 2012 -13, out of this pie, the EdTech industry amounted to about $ 8.38 billion globally.
The new age technologies routinely require new skills that are not present in the current curriculum of schools or colleges and the labor markets don’t supply them either. The new business’s or older companies looking to adapt to new technologies or innovative trends have persistent difficulty finding workers who can make the most of these new technologies. The Big 4 firms have echoed similar sentiments too; PwC research also found that 63 percent of the global CEOs worry about not being able to find employees with the necessary skills and innovative mindset to fill their open positions.
According to a worldwide survey conducted by the Global recruiting firm Manpower in 2013, 35% of the 38,000 employers surveyed, reported difficulty filling jobs due to lack of available talent. The situation will get worsened, by 2020 there could be a gap of 85 million qualified workers, estimates global consulting powerhouse McKinsey.
The market is unique in this case, because both the employers and employees will be ready to pay for the program. For companies it gives them the ability to stay in the market and the employees can upgrade themselves to be skilled in a high growth/paying segment.
LearnUp is a startup, which is in the similar area of business of training the entry-level job seekers before getting an entry-level job. However, LearnUp focuses on employment, which may not necessarily require a college degree. With the proposed idea, the startup will focus on training the candidates on the skills, which are difficult to fill.
Pain Point Target Audience
The customers for this startup will be “fresh graduates and professionals”. The students who clear college or complete a professional degree have theoretical knowledge but are not job ready, or are not ready for the high growth roles that have been recently discovered.
The idea is to make a platform where these students can pay a small amount to get coached through video lessons before they join an organization. This will give them a better shot at clearing the interview and once in the saddle; they will hit productivity metrics faster.
College graduates and candidates who have completed professional education feel confident when it comes to theoretical knowledge but lack the practical experience needed for a job. One of the ways the companies overcame this hurdle of job readiness, by designing 3 to 6 months induction programs. Most of the IT companies globally used this model to create their talent edge. With the costs coming under pressure, this model may not be best suited for future.
The pre-job training will ensure that the candidates are ready to start working on the tasks from day one. By using this model, the companies get readily skilled candidates, and the candidates improve their employability quotient by subscribing to this program.
The website will offer three products. The first product will provide an online access to job training videos for various profiles. Candidates select one of the profiles and pay for the video sessions.
The second product that the startup can offer in personalized training by mentors over the video conferencing sessions. This can be a premium service, and the startup can charge a premium for this service.
The third product will be where the startup shall tie up with corporates and create customized video training programs for the employees. The corporates can outsource their induction program to the startup.
Way to market
The first step would be to identify the job profiles, which have the highest skill gap, despite having an abundant supply of people who can be readily trained for the role. After that, the next step would be to create a learning profile for each of these functions. In parallel, you would need to identify industry experts and take their input and sign them on as mentors. Lastly, the program should be converted into a video module.
The Company would need to go to various colleges and organize seminars for final year students and educate them about the startup and the offerings. It will be a good idea to contact the college alumni and use their network to showcase the attractiveness of the service being offered. In addition to this if you can garner Industry or corporate tie-ups, it would make the proposition highly attractive for the students.
Investment Needed For Prototype
For testing building the prototype, pitch for raising 250K USD from angel investors or incubators, you can find one easily in your local country. We would recommend using the seed capital creating content and signing up with corporates as beta users. Make sure that you do organic marketing and not waste the money on costly Google or Facebook ads, at your stage you will draw limited benefit, considering the way these services are priced.
You would need to have a learning design expert as a co-founder; the learning expert would map the curriculum. In addition to this, it may be a good idea to get a cofounder who has experience in doing and managing corporate sales. By getting these two cofounders, you can reduce your time to market.
Investors / Expert Take
LinkedIn bought Lynda.com (which provides skill development training) for $1.5 billion, showcasing the attractiveness of the sector, It is said that the EdTech will revolutionize the future of education and training. Therefore, there is a lot of interest from the investors in this area. Funds like Greylock Partners, Floodgate, and High Line Venture Partners have invested in LearnUp and could be eying other players as well.