New York-based Pursuit raises US $10 million on March 31, 2022, to fund a promising and potentially self-sustaining new model for training new tech employees, in which students only pay when they get hired.
The Inherent Foundation, Pursuit Operating Board Chair Zac Smith, ETF@JFFLabs, Alphadyne Foundation, Ramesh Chandra, and donor-advised funds Fidelity Charitable and Vanguard Charitable participated in the round.
What the founder has to say:
There are job training programs out there, according to Pursuit creator Jukay Hsu, but they not only cost a lot of money upfront, but their support also expires when the lessons are complete. And, while charity in this field is generous in certain respects, it is just insufficient to address the magnitude of the problem.
“Having the expertise is crucial but insufficient for getting employed,” Hsu added. You can be intelligent, thoughtful, and capable, but structural impediments still exist. You won’t even get an interview if you don’t have a degree.
This second fundraising round is only happening because of these results, and institutional investors are taking the lead today.” It means we’ll be able to help a thousand people in the coming years while also becoming financially self-sufficient. There are a lot more investors interested in this if we can prove it here.”
What does Pursuit do?
Managers on the hiring side are keen to fill openings but afraid to take a chance on an applicant who lacks a degree or relevant work experience. However, as Hsu pointed out, entry-level roles are rarely skill-limited; instead, you’ll need someone familiar with the tools and willing to learn on the job.
On both sides of the market, risk management is missing: job searchers don’t want to go into debt for training that may or may not lead to employment, and businesses don’t want to take a chance on someone who doesn’t meet their (not necessarily relevant) qualifications.
Pursuit is developing a job training paradigm that addresses both of these concerns. On the job seeker side, learners with low or no income can receive free training and support until they land a job paying more than US $50,000, at which point they can negotiate payment. This takes four years of charges ranging from 5 to 15% of the new job’s earnings.
That’s a sizable fee, and there’s something deeply repulsive about the thought of raising someone up and then slicing a piece of their success. However, the idea is that the worker would make far more at the new employment, to begin with and would still have more after these payments.
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