The Smartest Bet in Education: How Seed Grants Unleash Private Capital

Every funder wants to back a market with proven demand. In education, that market is hiding in plain sight.

Half of American parents would choose a private school or homeschool for their child if given the option. 

Yet 80% of students remain enrolled in traditional public schools.

This is not a guess. It's one of the central findings of EdChoice's 2025 Schooling in America Survey, the most comprehensive annual study of parent preferences in K-12 education. The gap between what families want and what they currently have represented one of the largest unmet demands in American life.

The future of education will not be designed by central planners. It will be built by entrepreneurs who see this demand and move to meet it.

Our Investment Philosophy

Our approach is simple: find the most promising founders creating new school models and choice-driven platforms, and provide the catalytic capital they need to prove their model in the market.

We see this as a high-leverage, market-shaping investment.

Our small seed grants act as a powerful market signal. They de-risk innovation and attract a wave of private capital to scale what works. 

For funders who believe in market-based solutions, our model offers a clear path to transforming education by unleashing the market rather than trying to replace it.

From Concept to Investable Enterprise

In the world of school choice, a visionary idea is not enough. To secure a charter, attract families, or earn the trust of private investors, founders need one thing above all else: validation.

Our seed grant is that first, critical stamp of approval. It is the "First Yes" that starts the flywheel of growth.

And the grant is just the beginning. 

Our intensive coaching and diligence process transforms promising concepts into ventures that can meet the rigorous demands of the private market.

This initial validation creates momentum. The venture proves its model on a small scale, which attracts larger investments, which in turn fuels expansion to serve more families.

Proof of Demand

The demand for alternatives is not theoretical. Families are lined up, waiting for seats that do not yet exist.

In Texas alone, 73 813 students sit on charter school waitlists, according to the Texas Education Agency's 2024 Charter School Waitlist Report. Two-thirds of charter campuses in the state are oversubscribed. Each number on that list represents a family that has already raised their hand.

Economics only strengthens the opportunity. According to the National Center for Education Statistics, public schools spent an average of $16 560 per pupil in fiscal year 2023. 

Many of the school models we seed operate at a fraction of that cost while delivering results that families actively choose. Proven demand plus structural cost inefficiency equals a market ready for disruption.

Our role is to fund the founders who will capture it.

A Surge of Private Capital

Our primary goal is to make our ventures so successful that they no longer need philanthropic support. We are the catalyst, not the crutch.

By preparing our ventures for the market, we have unlocked a staggering amount of follow-on investment.

Our portfolio of school choice ventures has attracted over $1.4 billion in follow-on private investment, philanthropic grants, and sustainable revenue. 

For every dollar we invest at the seed stage, our ventures go on to raise multiples more from the private market.

This is the power of a market-based approach - our seed funding supports the school and launches a self-sustaining enterprise that private capital is eager to back.

The Ultimate ROI: Scaling Choice for Millions

Financial returns are a means to an end. The ultimate ROI is the number of families empowered with the educational choices they deserve.

By unleashing private capital, we enable our ventures to achieve a scale that traditional grant-making could never reach. From a single microschool to a national network, our ventures are creating thousands of new seats in high-quality, innovative learning environments.

From Pilot to National Scale: Ventures we seeded now provide transformative educational options for over 18.2 million students nationwide.

Built to Last and Grow: More than 57% of the school models we seed are not only operational after five years but are actively expanding to new cities and grade levels, driven by parent demand.

The numbers matter. But behind every number is a founder who took the leap.

As one 2025 Tiny Fellow told us:

"Being part of 4.0 was priceless because in addition to giving me the confidence that someone believed in my idea enough to fund it, the fellowship also gave me concrete knowledge and skills to implement it. I actually took the steps to create and register my entity... It's moments like this that keep me going."

The Catalyst for a Self-Sustaining Movement

We believe that competition and choice are the most powerful forces for improving education. We exist to be the critical first investor that prepares founders to thrive in a competitive market.

Fifty percent of parents are ready for something different. Waitlists are growing. Private capital is waiting on the sidelines for validated opportunities.

We build the pipeline that connects them.

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