Dear Sir/Madam,
As the only accelerated personalized international school in Singapore, 5 Steps Academy has a unique position in the market and proved to be a rapidly growing and highly profitable innovative business. We are pleased to invite you into our 5 Steps Academy expansion project as a Series B investor.
Quick facts
Accreditation: Cambridge and US College Board.
The current yearly revenue: $2,230,434
The current yearly operational expenses: $1,629,760
The current yearly profit: $675,213
The current number of students: 130
Current shareholders: 100% of the shares belong to one person (founder and CEO)
Purpose of investment: scaling, Series B funding.
3 possible strategies of scaling:
- One big school in Singapore (around 2000 students)
- Many small schools in Singapore and overseas (around 200 students each)
- Combination of the above.
Strategy 1 (One big school):
The total amount to raise: $30mln
Loans: $12mln
Projected revenue in 6-7 years: $65mln
NPV (=projected valuation of business): $201mln
Discount rate: 3%
IRR: 53%
Use of funds: mostly construction and equipment
Strategy 2 (many small schools)
The total amount to raise: $30mln
Loans: $12mln
Projected revenue in 6-7 years: $216mln
NPV (=projected valuation of business): $254mln
Discount rate: 3%
IRR: 55%
Use of funds: mostly rent, renovation, talent accusation and marketing.
In both cases, investors’ share is proposed to be 65%. However, in strategy 2, the amount of investment is flexible and can be substantially reduced up to $10mln, which means opening around 10 small schools in Asian countries at the first stage of the expansion.
Target audience: parents of primary students who prioritize academic results, affordability and flexibility.
Teaching system: proprietary 5 Steps approach with individualized explanation and revision system, cutting-edge education technology, highest teacher/student ratio (1:8) and proven results. We are experts in accelerated learning, parenting and child psychology.
We will send the project presentation and financial plans upon request and will happily meet in person or via video chat.
If you are interested in our educational MMORPG project Steppy, please click here.
Regards,
5 Steps Academy Team.