More Americans than ever want to avoid low-paying jobs, but leaving a new profession is a risky proposition. Pursuit has raised $10 million to fund a promising and potentially self-sustaining new training model for new tech workers, in which students are only paid when they find a real job.
The job market is weird right now: tons of job openings, but workers keep asking and demanding fair compensation and decent benefits – and many jobs with tech people won’t let a job seeker see you again without an appropriate degree.
Pursuit founder Jook Hsu noted that vocational training programs exist, but not only do they often cost a lot of money, but their support ends when classes begin. And charity in this area is somewhat generous, but disproportionate to the scale of the problem.
“Acquiring skills is a necessary but not sufficient condition for getting a job,” Sue said. “You can be talented, smart and capable, but there are still structural limitations. If you don’t have a degree, you won’t even pass the interview.” (And the interview probably wouldn’t be much more honest, he said.)
On the employer side, managers are desperate for job opportunities but are unwilling to risk a job seeker without a degree or relevant work experience. But as Sue pointed out, the truth is that entry-level jobs are rarely limited to skills — you’ll likely need someone who is familiar with the equipment and flexible enough to learn on the job.
The missing piece is in risk management on both sides of the market: job seekers don’t want to go into debt for education they can’t get a job for, and employers don’t want to bet on someone who can’t get a job. meet their needs. (not necessarily relevant) qualifications.
The goal is to build a vocational training model that minimizes both risks. For job seekers, low- or low-income students can receive free tuition and support if they find a job that earns more than $50,000, after which they can learn about payment. This takes the form of a 4-year return of 5-15% of income from a new job.
Of course, that’s a huge commission, and there’s something fundamentally nasty about the very idea of raising someone up and then reaping a slice of their success. But the idea is that a person will earn a lot in a new job initially and will have more even after these payments. And when the money is returned to the fund, it goes to cover the start-up expenses of the next grade students. Other options, like the coding boot camp, cost thousands to walk through the door. For someone who can barely afford the rent, a deferral of payment is highly possible.
On the employer side, Pursuit works with companies to create a genuine, skills-based recruitment process for pre-defined roles, and to help develop and advise onboarding and retention processes that address common downtime causes. There is a three-year post-employment support: “A key aspect of our work is to help companies recruit and retain talented people who do not have a specific background (like college or higher education, etc.),” said A. . I
If this sounds like one of those “good in theory, impractical in practice” ideas, you are not alone. Before anyone could fund the model, Xu was frustrated by the need to prove the model worked: “It’s a chicken and an egg.” But he managed to earn $750k to test it in 2016 and after seeing it for a long time, he’s happy to report that it’s been successful on all fronts.
“It will take four years to see results. From Uber drivers to engineers, it’s a three-year cycle — if it were three months long, they’d already have these skills,” Xu said. However, after four years, 86 percent of the group were employed and were earning more than $85,000—more than double or triple what they used to be. 90 percent kept their jobs after the first year, so it’s not just some TV show.
Not a bad use of $750,000, right? But the trick is that 750 thousand dollars was not publishedAs you would expect from any job placement program – they got 6.6% Harvest On top of that, pay it in full plus profit in 2020. Now you understand how the $10 million came about.
The round was led by Blue Earth Capital in conjunction with the Inherent Foundation, Pursuit Chairman of the Operations Board Zack Smith, [email protected]Alfadine Foundation and Ramesh Chandra, as well as Fidelity Charitable and Vanguard Charitable.
“This second round of funding is simply because we have such results – and now institutional investors are in charge,” Xu said. “This means that we can help a thousand people in the coming years, and this makes us financially self-reliant. If we can prove it here, it will be of interest to many more investors.”
It all depends on the company’s ability to expand its offerings. In addition to hiring more people and running courses for more students, they need to convince more companies to get involved. But if the next 1,000 Pursuit Fellows follow roughly the same trajectory as the last 100, it could be the start of a potentially transformative new path to upward mobility.