Impact investing in EdTech
In our eight episode, we discuss impact investing in EdTech. Our guests bring a complementary perspective: Marie-Christine Levet is founding partner at Educapital, a European EdTech VC that closed its second fund with a €150 million closing. John Soleanicov works for the Jacobs Foundation, which committed CHF 30 million to impact investments into EdTech, and CHF 10 million funding for accompanying research. We discuss the rationale for promoting EdTech and the complementary roles of grants and impact investments. We hear about Educapital’s and the Jacobs Foundation’s approach to impact measurement, and how Marie-Christine incentives her team to strive for more impact. Our conversation also touches upon what business models based on advertising mean for inclusion and educational sovereignty.
- The CHF 30 million deployed into EdTech by the Jacobs Foundation are going towards funds that have committed to use evidence in decision-making processes and collaborate on research projects. The learnings shall contribute to better use of impact data in investment processes.
- Future returns from the foundation’s impact investments are intended to finance the accompanying research facility, aiming to make it self-sustaining in the long run.
- Educapital measures the impact of its investments through 3 indicators: reach, inclusion and learning outcomes. As an incentive for the team to strive for more impact, the carried interest of the fund is linked to achieving these impact indicators.