Executive Summary

An Investment Platform for Human Capital.

  • Technology is disrupting labor markets while wealth inequality grows. Meanwhile, an education's skyrocketing cost and uncertain payoff make students and parents uneasy taking on debt while they shoulder all the risk.

    Adapting to these changes will require all stakeholders to reconsider the way education today is financed, administered, and valued. A true, systemic solution would provide transparency about the value of an education and would appropriately allocate the risks and rewards of such an investment to all parties. So we designed one.

  • We enable people to invest in students in exchange for a percentage of their future income. This provides downside risk protection to students, a novel asset class to investors, and signals about the ROI of that education to the market.

    Built by a team of experienced entrepreneurs, we funded our first students in 2014 and have built a platform for ISA underwriting, origination and servicing. Our mission is to quantify, invest in, and manage the world's human capital. We hope you'll join us.

Human Capital


Company Introduction

Student Debt = 1.5 Trillion

For the first time in history, consumers are more in debt to student loans than to credit cards.


And things aren't getting better...

More than half of students either don't understand the payoff of their education or don't feel it adequately prepared for the workforce.

And educational institutions and lenders are not seen aligned with students' interests.

What's going on?

We believe all of this stems from two root causes:

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    Lack of Transparency

    There is no standardized body of data regarding the costs, payoffs, risks, and issues.

  • exposure

    Misaligned Interests

    The interests of students, schools, lenders, and employers are not aligned.

How can we solve this?

Introducing the Income Share Agreement (ISA)

In exchange for funding, a student agrees to pay a percentage of their future income.

Key Terms:

  • Income Threshold

    If the student earns below the threshold amount, they don't pay. Ever.

  • Finite Duration

    Payments made for an agreed-upon amount of time.

  • Buyout Provisions

    The student has the right to 'buy out' of the obligation at any time.

  • A Flexible Financing Option for the Real World

    With an ISA, payments are based upon a student's income. This provides flexiblity for the 'real world', and protects students from risk. And if they make below a threshold amount, no payments are due for that year. If a student doesn't earn, they don't pay.

How It Works: Students

  • 1. Provide Info

    Students provide information on their academic record, personality, & more.

    App 1
  • 2. Get Offer

    They then can choose an offer from a range of thresholds and payment terms.

    App 2
  • 3. Pay as You Earn

    A student pays back as they earn, with income levels verified by tax returns.

    App 3

How It Works: Investors

  • 1. Build a Portfolio

    Investors choose the types of students they're interested in funding.

    App 1
  • 2. Invest in People

    We provide the underwiting, pricing, & origination to students.

    App 2
  • 3. Earn & Track

    We provide servicing & monitoring to quantify both return & impact.

    App 3

Benefits to Students

  • Risk Mitigation

    If they don't earn, they don't pay.

  • Potential-Based Pricing

    The rates are based on their potential, not their credit score.

  • Freedom to Explore

    They can focus on finding the right job, not just a job.

  • Aligned Interests

    They know that all parties involved have a true vested interest in their success.

In a recent survey of 800 students and parents by the American Enterprise Institute, respondents were nearly twice as likely to prefer an ISA to a traditional loan.

Benefits to Investors

  • Diversified Porfolio

    They can add a new, relatively uncorrelated, low volatility asset class to their portfolio (Sharpe > 1).

  • Hedge Inflation Risk

    They can hedge against certain forms of currency / inflation risk: if wages increase, payments increase.

  • Social Impact

    They can invest in education in a student-friendly way. They can truly do well by doing good.

Benefits to Education Providers

Alignment of Money & Mission

  • Increased Choice

    Another financing option for students, particularly for low-income and credit-poor students.

  • Increased Access

    No more conflict between spending to aid students and managing the budget or endowment.

  • Quantifable Impact

    Ability to track long-term student outcomes & quantify the impact to partners, investors, states, & alumni.

Benefits to Society

  • Better Information

    Clearer market signals on the costs, benefits, and long-term outcomes of various educational pathways.

  • Better Allocation

    Smarter allocation of risk to those who are best able to bear it, thereby removing financials barriers to education and increasing choice for students.

  • Better Education

    Money will flow to those best able to educate and train, increasing incentives to reduce costs and improve performance.

In the past 3 years, the number of U.S. schools offering ISA programs has gone from 1 to 25+, and total U.S. investment in ISAs has gone from near zero to over $40 million.


Assuming a constant growth rate, that means over $1 billion will be invested in ISAs by 2020.


Our Founders

Experienced Entrepreneurs w/ Industry Expertise

  • Brendan Florez

    • + CEO, Lumni USA (oldest & largest global ISA provider)
    • + President & COO, Polyera (exit 2019, SAES Getters)
    • + Exec. Consultant, Rosetta (exit 2012, Publicis 2012)
    • + 15yrs Management, Marketing, Biz Dev, Tech & Ops.
    • + B.S. Electrical Eng. & Neuroscience, Princeton
  • Phil Inagaki

    • + CEO, Voxel8 (3D printing Harvard spin-out)
    • + Founder & CEO, Polyera (exit 2016, SAES Getters)
    • + Raised over $80 million in private & VC capital
    • + Grew Polyera to 100+ employees across U.S. & Asia
    • + 15yrs Strategy, Fundraising, Biz Dev & Recruiting
    • + BS magna cum laude Physics & Finance, Princeton

Our Model

  • Using a validation set of 120 randomly selected students from 24 majors in 48 schools across 38 states, our model predicted their starting salaries with nearly 70% accuracy (R2 ~.696)

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Our Impact

"Thank you for all of your hard work; it has been a pleasure working with you!"

Our Impact

“The repayment plan that Base has is based upon how much money you make, so if I don’t make enough, I don't have to pay… in that way it’s much more stress free.

Our Impact

"Base Capital is more than just a loan company... [their assistance and mentoring] has changed me as a person. I highly recommend them to any student."

We live in a changing world.

Let's change with it.