Inherent funded a non-profit coding bootcamp using an income-share repayment model
Tony Davis · Sustainable Investing 7: Tony Davis – Hedge Fund Perspective at Inherent Group (Capital Allocators, EP.145) · Jun 29, 2020 · at 17:21
Tony Davis, founder of Inherent Group, describes a blended finance mechanism his foundation created to finance job training nonprofit Pursuit.
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“We led a financing for a not-for-profit coding bootcamp in Queens that focused on that population that really wasn't the for-profit coding bootcamps weren't accessible to them. These were non-college grads, median income of 18,000 dollars a year. That over nine months would learn iOS, HTML, JavaScript, and after nine months would graduate and be placed making 85,000 dollars and higher. Extraordinary. I've never seen anything like it in job training. We went to Jukay who founded and runs pursuit.org and said, you know, how do you scale this? And he said, look, I got to pass the hat every time for philanthropy. So we came up with a model where we lent them money to increase their capacity and the repayment plan was we asked students only if we placed them in high paying jobs. To pay a portion of their income back into the system to allow us to continue scaling.”
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