Copernicus Learning Ventures: Investments

Four trends are making the Education & Training industry an exciting time for investment: demand for accountability, advances in science and technology, structural changes in the industry and growth of the Knowledge Economy.

At Copernicus, we believe these profound and powerful trends are dramatically changing the way Education &Training dollars are spent in the U.S. and abroad, presenting significant investment opportunities both immediately and over the long term.

We have always applied an old-fashioned, hands-on disciplined approach to value investing to achieve superior returns. Copernicus has identified four key areas with significant growth and profit potential where it will focus its investments:

		Companies that will transform their industries with their technologies, including curriculum technologies, such as online learning companies; administrative/infrastructure technologies, such as web-based student information systems; and human capital management technologies to boost productivity.

		Companies that will transform their industries with their services, such as vocational colleges, charter school management companies, or contractors of business services.

		Companies that have vast potential for restructuring and growth, such as seminar-based professional development companies and evaluation and assessment companies.

		Restarts and early-stage companies facing financial pressure but with a particular asset to be exploited, such as proprietary technology, an extensive customer base, valuable strategic partners, or a distinctive marketing team. These companies present valuable M&A opportunities.

We focus our investments on building significant and durable businesses that can dominate their respective markets. We are looking to invest in companies with potential for substantial and sustainable growth. Our goal is to create shareholder value by investing in, acquiring, and starting companies that have strong potential for market leadership--making selective investments in new ventures, forming partnerships with emerging leaders, and providing capital to entrepreneurs with development stage companies.

The principals of Copernicus Learning Fund have always espoused a value-driven approach to investing. A few years ago, many investors got overexcited about online and technology companies, but they failed to ask the tough questions about business fundamentals. Now, we’re back to what venture capital and private equity investing has been about historically – a deep knowledge of the marketplace that enables funds to invest in companies in which they can also add value.

Company characteristics we especially value include:

		Unusually talented management or ability to attract exceptional management team
		Proprietary products, services, customer base, or vendor relationships
		Technological superiority
		Potential for dominance in a large sub-segment of the market
		Potential for significant financial appreciation

Copernicus Learning Fund invests in deals only where we can work constructively with management. We do not anticipate participating in hostile transactions. We seek to become long-term value-added partners with management with aligned incentives including:

		Establishing working partnerships with outstanding operating executives;
		Adding value to our investments by taking an active board role in and employing our professional, financial, and business skills in such areas as strategy, policy issues, key personnel, finance and accounting, marketing, and international expansion; and
		Making our knowledge, experience, and relationships available to our portfolio companies in a positive and supportive manner to enhance investment results.

To help us get to know you and your investment opportunity, please provide us a business plan addressing:

		Company history
		Description of product or service
		Profiles of principals and key personnel
		Operating and revenue models
		Market size
		Competitive landscape
		Historical financials
		Financial projections for 5 years
		Amount of funding sought
		Use of proceeds
		Current capital structure

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