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Announcing Our New ISA Financing Blueprint and $100M in New Financing

60 点作者 loganfrederick大约 5 年前

13 条评论

hpliferaft大约 5 年前
I went to a bootcamp with an ISA. I&#x27;m thankful for the temporary relief it offered, but I&#x27;m almost positive most of the students in my cohort don&#x27;t have coding jobs right now. I&#x27;m convinced the low admission standards (&quot;Never code before? Do this module of Ruby.&quot;) and the ISA demotivated them to always keep learning and hustle their way into interviews, which is what everyone who learns MVC app development in three months will need to do.<p>Anecdotally, the older or previously successful students who could keep up went on to succeed, but these people already knew how to hustle. Bootcamp can&#x27;t teach people how to hustle.<p>(I learned to hustle after previously participating in an even bigger scam - a state school humanities undergraduate education. ... )
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duckfruit大约 5 年前
Looks like there has been some departures in their senior leadership in the wake of continuing fallout from the NYMag article, and this announcement might be an attempt to overshadow that<p><a href="https:&#x2F;&#x2F;twitter.com&#x2F;KateClarkTweets&#x2F;status&#x2F;1230242124500570114" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;KateClarkTweets&#x2F;status&#x2F;12302421245005701...</a>
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danso大约 5 年前
The timing and content of this announcement is...confusing. I&#x27;m definitely not an expert in this, but the details here of the financing seem pretty general and straightforward, i.e. the type of document I&#x27;d assume they would&#x27;ve already drawn up when partnering with edly several months ago [0]. And that still doesn&#x27;t explain why Lambda and Allred wouldn&#x27;t have this info prepared by the time The Verge and NYMag (the latter which was a 5 month investigation) came calling around. It also doesn&#x27;t explain why edly took the partnership announcement pages down the same day that @dhh started tweeting about them [1].<p>And then there&#x27;s the issue of two prominent Lambda executives (one of them an investor, IIRC) stepping down this afternoon. [2]<p>[0] <a href="https:&#x2F;&#x2F;www.theverge.com&#x2F;2020&#x2F;2&#x2F;12&#x2F;21135134&#x2F;lambda-school-students-edly-isa-debt-swapping-partnership-shares-investors" rel="nofollow">https:&#x2F;&#x2F;www.theverge.com&#x2F;2020&#x2F;2&#x2F;12&#x2F;21135134&#x2F;lambda-school-st...</a><p>[1] <a href="https:&#x2F;&#x2F;twitter.com&#x2F;dhh&#x2F;status&#x2F;1227317343539335168" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;dhh&#x2F;status&#x2F;1227317343539335168</a><p>[2] <a href="https:&#x2F;&#x2F;twitter.com&#x2F;KateClarkTweets&#x2F;status&#x2F;1230242124500570114" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;KateClarkTweets&#x2F;status&#x2F;12302421245005701...</a>
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Traster大约 5 年前
So they&#x27;re basically admitting to what the news articles were accusing them of in the first place. And what they&#x27;re describing seems to basically be a CDO. The thing that gets me about this company is that it very much seems that to the public they&#x27;re saying &quot;Aww man doesn&#x27;t it suck that student debt is a $1.6Bn business&quot; whilst saying &quot;Aww man we&#x27;re going to get some of that juicy juicy $1.6Bn business&quot; to investors.<p>If Lambda school worked, their ISAs would be paying off at this point, they&#x27;d be seeing a profit from their first cohorts and so not only would they have fresh cash to invest, but VCs would see the ROI and growth and throw down some cash. It seems very clear to me that they&#x27;ve failed to demonstrate the business model. So they hand off the core of their business (taking the risk students don&#x27;t pay off) to a 3rd party and try to just spin some cash from the classes. If I were them I&#x27;d be looking for an exit, quick.
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minimaxir大约 5 年前
<i>Interesting</i> timing, given the recent articles about Lambda School.<p>It appears they are <i>doubling down</i> on the ISA brokering with Edly. (Which had <i>deleted references</i> to Lambda after they were exposed.)
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joshi4大约 5 年前
I don&#x27;t quite understand the &quot;100 million in new financing for ISAs&quot; is this a new round of funding from VC&#x27;s or something else ?
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newfeatureok大约 5 年前
ISAs are a good idea, but there&#x27;s no way you can start a <i>hyper-profitable</i> business around it. It&#x27;s literally a ponzi scheme under those circumstances as the total amount of students &quot;pending&quot; will always exceed those who are paying out as the mandate is to grow.<p>The potential solutions are three fold:<p>1. Limit growth of students - impossible if your organization received venture capital.<p>2. Reduce the cost to educate - Unfortunately if you make education a commodity, ironically it will be replicated, leading to alternatives, ultimately leading to (1).<p>3. Guarantee the loans somehow<p>I think the only type of organization that could pull it off is one that doesn&#x27;t mind waiting a long time to do it sustainably. Probably a not-for-profit. Alternatively, you could sustain it by doing it at a loss, e.g. you have some other organization to ensure (3).
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austenallred大约 5 年前
Hey, CEO of Lambda School here.<p>We’ve been working on this for over a year, and it finally closed today. We’ve been intensely focused on incentive alignment since the early days of Lambda School, and finally got to design an incentive-aligned ISA financing mechanism from scratch. Glad to have it out there.
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ttcbj大约 5 年前
I have not read the NYMag article, but I personally think this approach makes a lot of sense.<p>My own favorite higher education reform idea is to have the gov&#x27;t fund higher education by paying schools a percentage of the student&#x27;s increase in W2 earnings for a period after graduation. That would avoid the &#x27;indentured servitude&#x27; aspect, because the gov&#x27;t would be paying, but would only reward schools that could increase students&#x27; W2 earnings.<p>To the extent that lambda school is exploring models that do something similar, it might eventually make space for a gov&#x27;t funding model build around the insights they have had (like the one in this announcement, about how to pull future revenues forward to fund the school in a practical way).
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freewilly1040大约 5 年前
Inflating job placement stats and using brand new students to write curriculum is shady, but I don&#x27;t get why the ISA is controversial. The incentives between student and school are still aligned and better than those of traditional higher ed. If the students don&#x27;t get jobs, no one buys the ISA, the school goes under.
exolymph大约 5 年前
Here&#x27;s the other thread, for anyone who&#x27;s missing context: <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=22366474" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=22366474</a>
urda大约 5 年前
I&#x27;m 100% concerned that this post was AstroTurf&#x27;d to the front of HN given the negative article posted against Lambda hours before. This managed to hustle up in less than 15 minutes and kept climbing.
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taytus大约 5 年前
Is Austen Allred the Elizabeth Holmes of coding bootcamps?
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