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Invest in the degrees of high potential students in emerging markets.

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The ROI of higher education in developing countries can exceed 80%, but for 600 million poor students there is currently no viable way to pay for a degree. We use our proprietary underwriting to select high potential students and invest in their degree. After graduation students repay us a percentage of their increased income and investors earn a predictable attractive return on their investment.

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Invest in the degrees of high potential students in emerging markets.

  1. 1. We invest in the education of the brightest students in developing countries. Students earn a degree, our investors an attractive return.
  2. 2. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 Problem / Opportunity Despite the high return, financing for a degree simply isn’t available for many students Poverty and high youth unemployment: Poverty is a prevalent problem in developing countries and youth unemployment often surpasses 30%. But a shortage of graduates with good degrees: Flourishing engineering firms, software startups, agricultural companies etc. struggle to find qualified employees. The result is a very high ROI from higher education: A degree increases income 5x, educates graduates’ children and contributes to the development of the country. Unfortunately degrees are out of reach for most of the population: Banks don’t provide student loans. Governments & NGO’s don’t have the capital to address this need. Our opportunity for value creation: Investing in the degrees of talented students so they can kick start their careers is our opportunity to create and capture value. 1/13
  3. 3. Brighter Investment - Katapult 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 3/9 Adua’s degree is a great investment opportunity Without his degree, Adua would most likely be working with his dad as a trotro driver and earn about 125 USD per month. As a medical consultant Adua is earning 750 USD per month and repays us 185 USD per month to be paid out to investors or reinvested in new students.
  4. 4. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 Scalable solution Support diversified cohorts of the best and brightest students for a % of future earnings Our data driven underwriting algorithm selects the brightest students and we focus on the best degrees. We cover the full education costs for diversified cohorts of 1st , 2nd , 3rd and 4th year students. Students are connected with mentors to kickstart a successful career. After graduation students repay a percentage of their income for a set period of time (typically 6 years). Investors receive distributions in year 2-12 from repayments made by graduated students in their cohort. Brighter Investment gets a management fee. This provides equity investors with their ROI. 3/13
  5. 5. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 Our model works 22 repaying students that outperform peers and projections show that our model works Performance Context 0% dropouts 0% of our students have dropped out of university. At our 6 partner universities the average dropout rate is 6%. 4.5% unemployment For Brighter uni grads that completed their program, unemployment is 4.5%. Unemployment is 10% for the average graduate and 25% for their total age group. 5X salary increase On average our working university graduates earn 5 times as much as high school graduates without a degree. 0% non-repayment Of the students that have secured employment, 100% are making repayments. 4/13 *Because of our method to identify high potential students, our graduates are outperforming their peers and our projections in every category. That’s why our first investors are expected to earn a better than projected ROI.
  6. 6. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 Market size $600 billion unserved market In developing countries, 60 million high potential students graduate from high school every year with the grades, potential and ambition to attend college, but not the financial means to do so. GHANA 120k high school grads/yr require $1.1 bln WORLD WIDE 60m+ high school grads/yr require $600 bln INDIA 12m high school grads/yr require $140 bln SOUTH AFRICA 450k high school grads/yr require $6.2 bln INDONESIA 560k high school grads/yr require $4.9 bln 5/13
  7. 7. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 Predictable return Percent-of-income repayment model provides a predictable return Predictable: ● Projected ROI conservatively based on 20 years of historic data for average students, our high potential students perform above average. ● A large and diversified portfolio of students means returns are driven by predictable average graduation, employment, and income rates. ● Repayment ensured through a combination of social, legal, and practical incentives. Low volatility and inflation/FX hedged: ● During periods of high inflation, local currency loses value but graduate salaries tend to maintain their value in investor currency. Volatility of returns would have been 5.4% over the past 20 years despite years of high inflation. (S&P500 volatility was 18%) ● Over the last 20 years, developing country wages have actually increased 5% faster than they were diluted by inflation and changing exchange rates. 6/13
  8. 8. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 Validation Launched with 24 students at 3 partner uni’s in Ghana. Launch Repayments Growth trajectory and capital sources Angels, foundations and impact investors bridge the gap to institutional capital First graduates from a vocational training program started making repayments. $350k in debt capital for students. 130 students supported. 21 repaying grads outperforming projections. Accelerated growth funded by institutional investors investing in student cohorts and VCs investing in the company to scale operations. Scale 44,000 new students supported per year, $340 million under management and a presence at 108 universities in 10 countries around the globe. The future is bright! Goal 2015 2016 2017 2018 - 2020 2021 - 2023 2024 7/13 Expansion to other countries. Building a track record and scale that makes Brighter Investment attractive to institu- tional investors. Growth
  9. 9. Brighter Investment - Katapult 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 Impact multiplying over time Impact and value of your investment increase exponentially over time $100k donated in the form of scholarships $100k invested with Brighter Investment, distributions paid out $100k invested with Brighter Investment, distributions reinvested for 12 years 13 students supported 0 financial return 13 students supported $172k repaid in y2-y12 37 students supported $617k repaid in y13-y24 9/9 Her repayments can support two new students For investors that reinvest distributions to grow the value of their investment, one repaying student supports two new students, who can support 4 new students etc. Both the value of the investment and impact of the investment increase exponentially over time.
  10. 10. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 Impact multiplying over time Impact and value of your investment increase exponentially over time $100k donated in the form of scholarships $100k invested with Brighter Investment, distributions paid out $100k invested with Brighter Investment, distributions reinvested for 12 years 13 students supported 0 financial return 13 students supported $172k repaid in y2-y12 37 students supported $617k repaid in y13-y24 9/13
  11. 11. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 The team Combined experience provides required expertise Richard Adarkwah Ghana operations Thijs Mathot Data & Tech Space systems engineer, data science, raised institutional funding for PPP projects and high growth data tech startup veteran. Finance specialist, strategy consultant, raised multiple rounds of funding for a fast growing startup. Tyson Titensor Bus Dev & Capital Google Education Ambassador, Unicef project manager and Ghanaian uni graduate that faced financial difficulty. 10/13 Joy Lamptey Mentorship & marketing Ghanaian MBA graduate, Mentor at Eagles Hope Foundation, HR specialist and recipient of BI education loan.
  12. 12. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 Contribute to the UN Sustainable Development Goals 1. No Poverty: Our students increase their income 3-5X, their children are more likely to be educated and their families benefit from better health and housing. 4. Quality education: Not only do we provide our students with access to quality education, our market driven approach also incentivises education providers to improve the job relevance of their programs. 5. Gender equality: Women are disproportionately affected by lack of access to higher education, we’re actively working to remove these barriers, financial and non-financial. 8. Decent work and economic growth: We focus on degrees that are in high demand and offer good career prospects. Through economic growth one graduate also results in 3 jobs for less educated people. 10. Reduced inequalities: In emerging markets, access to higher education is mainly determined by your family background. We’re providing our students with an equal opportunity to a degree. 11/13 Afor-profitinvestmentmodelcanreachalargerscaleandhavemoreimpactthananon-profit
  13. 13. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 Why now? Demand for higher education is large and growing - The workforce of sub-saharan Africa and southeast Asia will increase by 2 billion people by 2050. Employers report an inadequately skilled workforce as the major constraint to their businesses. The required capital needs new investment opportunities - Socially responsible invested assets are growing by 9% per year. Institutional investors report that demand for large and proven impact investment opportunities outpaces supply. It is now technically possible to cost effective serve our target market - Internet penetration in emerging markets is growing rapidly. Also poor young people access the internet, use Whatsapp and update their Facebook profile. Internet and technology make it possible to cost effectively reach and serve the poorer market segments. 12/13 Three trends coalesce to create this opportunity
  14. 14. Brighter Investment Pitch Deck July 2018 | t.mathot@brighterinvestment.com | +1.778.985.4562 We’re changing the world. Be part of it. Our model has been proven on a small scale. Help it grow. Invest in our next cohort of students for a % of their future income: ● Predictable and stable return conservatively projected at 9% ● Clear exit in the form of distributions in year 2-12 ● Direct positive impact on the lives of bright students and society Invest in our vision for an equity stake in the company: ● $500k USD in equity investment at $3 million valuation ● Part of $2 million operational budget to enter new markets, to scale up sales & marketing & continue the development of the technology ● An acquisition planned in 2024 provides an exit opportunity We also seek advisors & connections in: ● Impact investment ● Lending operations at scale ● Marketing 13/13
  15. 15. Together we can empower the most talented students in developing countries, so instead of subsistence farmers or servers in the tourism industry, they get the chance to become our future leaders in science, engineering, medicine and business. The future is bright. Be part of it.

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