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    Edutech Business Plan Finalized

    Uploaded by

    Bun Hourng Tan
    - The document is a pitch deck for Edutech University, proposing a new university in Cambodia that would utilize innovative mobile education apps and attract students who fail entrance exams at other universities. - It highlights the oligopolistic nature and high barriers to entry in the university sector in Cambodia. The proposed mobile apps could save up to 60% on classroom and teaching costs. - Financial projections estimate the university could enroll over 4,000 students by 2025, become profitable by 2023, and offer investors targeting 10,000 shares annual returns of 42-64% depending on their investment level.

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    Edutech Business Plan Finalized

    Uploaded by

    Bun Hourng Tan
    126 views13 pages
    - The document is a pitch deck for Edutech University, proposing a new university in Cambodia that would utilize innovative mobile education apps and attract students who fail entrance exams at other universities. - It highlights the oligopolistic nature and high barriers to entry in the university sector in Cambodia. The proposed mobile apps could save up to 60% on classroom and teaching costs. - Financial projections estimate the university could enroll over 4,000 students by 2025, become profitable by 2023, and offer investors targeting 10,000 shares annual returns of 42-64% depending on their investment level.

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    Edutech-Business-Plan-Finalized

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    - The document is a pitch deck for Edutech University, proposing a new university in Cambodia that would utilize innovative mobile education apps and attract students who fail entrance exams at other universities. - It highlights the oligopolistic nature and high barriers to entry in the university sector in Cambodia. The proposed mobile apps could save up to 60% on classroom and teaching costs. - Financial projections estimate the university could enroll over 4,000 students by 2025, become profitable by 2023, and offer investors targeting 10,000 shares annual returns of 42-64% depending on their investment level.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    126 views13 pages

    Edutech Business Plan Finalized

    Uploaded by

    Bun Hourng Tan
    - The document is a pitch deck for Edutech University, proposing a new university in Cambodia that would utilize innovative mobile education apps and attract students who fail entrance exams at other universities. - It highlights the oligopolistic nature and high barriers to entry in the university sector in Cambodia. The proposed mobile apps could save up to 60% on classroom and teaching costs. - Financial projections estimate the university could enroll over 4,000 students by 2025, become profitable by 2023, and offer investors targeting 10,000 shares annual returns of 42-64% depending on their investment level.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 13

    Edutech University

    Pitch Deck
    Why invest in our university project?

    • University business is of oligopolistic nature as it is very difficult to get a


    license and the barrier to entry is very high. No new university license has
    been issued for 5 years.
    • Higher education market is estimated to be $122m a year with 250,000
    currently enrolled students, captured by 101 institutions.
    • It is a subscription business that is easy to retain clients. Once students
    enroll in a university, they are likely to be captured for 4 years.
    • Our mobile education app can save up to 60% on classroom and personnel
    cost. It will be the most innovative university educational app in Cambodia.
    • With IFL lecturers, we can attract a pool of 9,000 students that don’t pass
    IFL exams each year
    Market Size

    Students Average Market


    Class (in ‘000) Fee (in ‘000 USD)
    Prep & Special Courses 20 400 8,000
    Year 1 Class 65 450 29,250
    Year 2 Class 55 450 24,750
    Year 3 Class 50 450 22,500
    Year 4 or Higher Class 45 450 20,250
    Post-graduate Degrees 15 1,200 18,000
    Total 250 122,750

    This number is estimated from the number of students passing high school leaving exam in 2019:
    http://www.xinhuanet.com/english/2019-08/19/c_138320482.htm and https://www.iias.asia/the-
    newsletter/article/politics-higher-education-cambodia. Tuition fee is estimated.
    Degrees Offered

    • Bachelor of Business Administration


    • Bachelor of English Communications
    Class Schedule

    Mon, Wed, Fri Tue, Thu, Sat


    8.00am-11.00am Morning Shift A Morning Shift B
    11.20am-2.20pm Noon Shift A Noon Shift B
    2.40pm-5.40pm Afternoon Shift A Afternoon Shift B
    6pm-9pm Evening Shift A Evening Shift B

    • One classroom can operate 8 classes. This can save up to 60% on


    classroom cost.
    • The number of instructional hours is only 9 hours per week as compared
    to 18 hours a week thanks to our instructional app. This can save up to
    60% on teaching personnel cost.
    Business Administration

    Year 1 Year 2 Year 3 Year 4


    First Khmer History Microeconomics Marketing Management Strategic Management
    Semester Introduction to Economics Principles of Management HR Management Business Plan
    English 1 Business Statistics Operations Management Career Plan
    Introduction to Business Business English Business Law
    Business Mathematics
    Second Khmer Culture Macroeconomics Project Management Business Execution
    Semester Psychology Organizational Behavior Financial Management Project Paper
    English 2 Principles of Accounting Entrepreneurship Presentation
    Principle of Marketing Business Communication Ecommerce
    Computer Skills
    English Communications

    Year 1 Year 2 Year 3 Year 4


    First Khmer History Core English III Core English V Advanced Communications
    Semester Khmer Literature Writing Skills III Business Writing Business Plan
    Psychology Global Studies I Global Studies III Career Plan
    Core English I Literature Studies I Business Skills I
    Writing Skills I
    Second Khmer Culture Core English IV Core English VI Internship
    Semester Computer Skills Writing Skills IV Research Methods Project Paper
    Leadership Philosophy Global Studies II Global Studies IV Presentation
    Core English I Literature Studies II Business Skills II
    Writing Skills II
    Go to Market Strategies

    • Influencer Marketing
    • Ground game strategy that attracts students failing IFL entrance
    exams through IFL lecturers.
    • Education App that facilitate students learning and adapt them to the
    digital working environment.
    • State of the arts facilities such as smart whiteboards, hi-tech study
    halls, and a modern cafeteria.
    Competition Landscape
    Our Uni RUPP-IFL RULE NUM Norton CamEd Vanda
    Number of Students X 21,000 14,000 14,000 12,000 3,000 8,000
    Campus Size * *** ** ** ** * *
    Study Facilities *** * * * ** ** *
    Price Affordability *** *** *** *** *** * ***

    Lecturer Profile *** *** ** ** ** *** *


    Education App *** X X X X X X
    School History X *** *** *** ** *** *
    Tech Startup Appeal *** X X X X X X
    Financial Projection
    Class 2021 2022 2023 2024 2025
    Students 840 1,710 2,635 3,650 4,070
    Class 24 52 82 115 129
    Classroom required 3 7 10 14 16
    Revenue
    Tuition 420,000 855,000 1,317,500 1,825,000 2,035,000
    Others 100,800 205,200 316,200 438,000 488,400
    Total Revenue 520,800 1,060,200 1,633,700 2,263,000 2,523,400
    Expenses
    Teaching Personnel 108,000 255,600 415,800 591,300 684,000
    Non-Teaching Personel 102,000 168,950 188,400 210,600 210,600
    Marketing 210,000 157,500 183,750 210,000 210,000
    Selling, General &Admin 35,280 72,996 113,064 156,989 176,050
    Rental 100,000 120,000 120,000 120,000 120,000
    R&D 15,120 31,284 48,456 67,281 75,450
    License Fee 10,000 24,000 24,000 24,000 24,000
    Total Expenses 580,400 830,330 1,093,470 1,380,170 1,500,100
    EBIDTA -59,600 229,870 540,230 882,830 1,023,300
    Tax 45,974 108,046 176,566 204,660
    Net Profit -59,600 183,896 432,184 706,264 818,640
    CAPEX 500,000 42,408 65,348 90,520 100,936
    Net Cashflow -559,600 141,488 366,836 615,744 717,704
    Main Assumption: Cost per student acquisition: $250 in 2021 and $150 in subsequent years
    Investment Allocation

    Budget (USD)

    Renovation, Furniture & Equipment 400,000


    Marketing 210,000
    Content Development 90,000
    Rental 100,000
    Reserve 275,000
    Total 1,075,000
    Proposed Cap Table
    Price per Investment Share Total #
    Shareholders share (USD) (USD) Allocation of Shares
    Groupin and Vichet License & App 1,000,000 1,000,000
    IFL Alumni & Operators 0.75 225,000 300,000 1,300,000
    Stage 1 Investor 1 400,000 400,000 1,700,000
    Stage 2 Investor 1.5 450,000 300,000 2,000,000
    Total 1,075,000 2,000,000 2,000,000
    IRR on 10,000 share investment & Annual Dividend

    Investors Investment Year 2 Year 3 Year 4 Year 5 Terminal IRR


    (USD) (USD) (USD) (USD) (USD) Stake
    Valuation
    Operators 7,500 500 1500 3000 3500 75,000 64%

    Stage 1 10,000 500 1500 3000 3500 75,000 55%

    Stage 2 15,000 500 1500 3000 3500 75,000 42%

    Terminal valuation of the university business is based on an EBIDTA multiple of 15. EBIDTA is $1m at
    the end of the fifth year. Thus, it will be $15m in valuation. 10,000 shares is equal to 0.5% stake of
    the business.

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