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FAQ
What do you mean by “venture capital” model?
The Fund applies the principles of venture capital investing to the non-profit arena. Although not every principle is applicable, many are. Essentially, venture capital investing is about partnerships, not just dollars. We identify outstanding management teams running high-impact programs with clear goals and considerable growth potential. That potential can be to go to scale across the school district, or to create systemwide policy changes.
The Fund partners with Chicago Public Schools, bringing new ideas to the table. We look for programs that are willing to partner with us and can benefit from our expertise, as well as programs that are strongly correlated with other programs in our portfolio.
Once we make an investment, we provide strategic management
assistance. That means helping programs develop strategic
plans, recruit board and staff members, identify new funding
sources, and navigate and build relationships with district
leadership.
Finally, we demand a social return on investment. We agree to
specific benchmarks with every program, and continued funding
is tied to performance throughout the year. We track performance
using a balanced scorecard method that takes into account each
program or initiative’s stage of development, and targets
areas for growth and improvement.
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Does The Fund invest in for-profit companies?
Not directly. The Fund is a 501 (c)(3) public charity, so we cannot make investments in for-profit companies. However, we can—and occasionally do—partner with Chicago Public Schools when the district engages for-profit service providers. This is highly dependent on the nature of the provider’s relationship with CPS and whether it furthers The Fund’s focus on recruiting, developing and supporting teachers and principals.
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Does The Fund accept unsolicited proposals?
No. We encourage programs interested in working with The Fund to carefully research the programs in our portfolio to determine whether there is a fit. If so, we invite you to learn more about the process here.
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How do you determine whether to invest in a program or opportunity?
Once we have identified a potential investment, we perform comprehensive due diligence to determine whether we will make an investment. This includes, but is not limited to:
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Evaluation of the program's fit with our investment strategy and objectives |
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Potential for the program to change policy or fulfill our long-term objectives |
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Caliber of the management
team, their track record and their willingness to partner
with us |
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Evaluation of what The Fund can bring to the table and whether we can add significant value beyond dollars |
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Support from other sources, particularly Chicago Public Schools |
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The long term goals and objectives of the program, including its sustainability and long-term financial support |
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Is The Fund part of the Chicago Public Schools?
No. The Fund is an independent
organization. We are supported entirely by private-sector
investors. However, we work closely with CPS to leverage our
investments and make a measurable impact on the school district.
We work closely with CPS CEO Arne Duncan and his executive
team, as well as other leaders at the CPS central office to
ensure that our investments can have greater impact. In fact,
for every dollar we’ve invested in a program or initiative,
CPS has invested at least three.
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Does The Fund provide scholarships?
No. The Fund makes a limited
number of large investments in programs and initiatives that
have systemwide impact in CPS. Those investments are focused
exclusively on school leadership—primarily teachers
and principals.
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Does The Fund have an endowment?
No. Over time, we will organize
a series of funds based on specific opportunities where investment
of private-sector expertise and capital can improve Chicago
Public Schools. Rather than accumulating dollars over time,
The Fund seeks to be a catalyst — to invest just enough
to effect system-wide change and help our programs become
a permanent part of our school system.
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Does The Fund offer a financial return?
No. Our investment strategy seeks a social return—improved school performance and student achievement.
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Why the exclusive focus on leadership?
Research demonstrates that the single largest factor in student performance is the quality of that student’s teacher. We also know that teachers who leave their schools most often cite a lack of administrative support as the reason for their departure. Accordingly, The Fund sees the recruitment, development, support and retention of high-quality school leaders as the single most effective way to improve student achievement.
Beyond this, The Fund’s active group of investors—Chicago’s business and civic leaders—offer a great deal of expertise in grooming and developing skilled leadership. We believe that the private-sector can offer highly transferable lessons to our public school system.
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Does
The Fund invest in public education throughout the entire
Chicagoland area?
No. The Fund is exclusively
focused on the 600-plus public schools within Chicago's city
limits.
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