Non-profit NewSchools Venture Fund is in the process of creating a new for-profit investment fund, reports EdSurge. The new fund will be lead by Jennifer Carolan who is currently in charge of the NewSchools Venture Seed Fund. Carolan will be leaving the non-profit on January 30th to focus on setting up the new fund.
Details on the new for-profit fund are still to be determined including the relationship between the two entities and the size of the new fund. For the time being all startups NewSchools Venture Seed Fund invested in remain assets of the non-profit, and the fund remains operational.
The new for-profit fund will have its own portfolio and make investments beyond the seed stage.
“One thing the new structure and access to additional investors can give us is the opportunity to participate in follow-on rounds for more of our seed stage companies going forward.”
states NewSchools CEO Stacey Childress in the interview.
“It’s a great signal for other investors who may only come in at later rounds. To be able to provide follow-up support signals the confidence that our investor team has, having been with a company through the seed stage It’s a signal to the market of the potential of that company.”
Since its launch in 2012 NewSchools Venture Seed Fund has invested around $12 million in 42 edtech startups. After the launch of the new for-profit fund, NewSchools will still offer grants to edtech startups but will refocus on its original mission of supporting innovation in charter schools and districts.
- NewSchools Spins Off New, For-Profit Venture Fund | EdSurge
- NewSchools’ Nonprofit Seed Fund Gives Way to For-Profit Investment Arm | EdWeek