Real Time Cases
September 01, 2017
An experienced founder in the education space, John Katzman laments that the best practices for startup financing don’t easily apply to Noodle, given its studio structure as a company of companies. John is fond of saying “The place to get clever is the business model and the team, not the financial structure.” Noodle is quite clever; it plays in K-12 and Higher-Ed; B2C, and B2B; it is a studio of management teams across education that risks spreading itself too thin if done poorly. And still, VC or Angel investors don’t typically invest in a company of companies; they want to invest directly in a single CEO and business model. So how should John look to finance Noodle Companies in the future beyond his own self-funding? Is John overlooking potential in the universe of High Net Worth individuals and other unconventional funding paths? Is this idea of a studio doomed, or can you figure out a financing solution? Or, is John’s best path simply to pursue individual financing for each of the first three Noodle companies independently of the parent?