ITT Tech \USA

Step 2 - Validation (Months 4-9): Enroll first paid cohort of 50 students in 6-month full-stack web development program (React, Node.js, PostgreSQL, AWS deployment). ISA terms: $0 upfront, 12% of salary for 24 months if placed in $50K+ job, $0 owed if no job or below threshold. Partner with 10 startup/mid-market employers (YC companies, local tech firms) for curriculum co-design and hiring commitments. Deliver live instruction (Zoom) + AI tutoring (24/7 GPT-4 code review) + weekly 1-on-1 mentorship (outsourced to senior engineers at $50/hour). Track metrics: completion rate (target 70%+), job placement rate (target 80%+), time to hire (target <90 days post-graduation), starting salary (target $65K average). Cost: ~$150K (instructor salaries, AI API costs, marketing, operations). Revenue: $0 in first 12 months (ISA payments start post-placement), but validate unit economics and outcomes.

Step 3 - Growth (Months 10-18): Scale to 200 students across 4 cohorts (staggered starts every 6 weeks). Automate instruction: convert live lectures to pre-recorded + AI-enhanced (interactive transcripts, AI-generated quizzes, personalized review sessions). Hire 2 full-time curriculum developers and 5 part-time mentors. Expand employer partnerships to 50 companies with formal hiring agreements. Launch referral program: graduates who refer successful students get $500 bonus. Invest in content marketing (SEO-optimized blog posts on career transitions, YouTube tutorials, podcast sponsorships). Build internal data pipeline (Retool dashboard) tracking leading indicators: assignment completion rates, AI tutoring engagement, mock interview scores. Goal: 70%+ completion rate, 85%+ job placement, $70K average starting salary. Begin receiving ISA payments from Month 4-9 cohort (~$200K annual run-rate revenue).

Step 4 - Moat (Months 19-36): Build proprietary AI teaching models fine-tuned on student interaction data (what explanations work, common misconceptions, optimal pacing). This creates a compounding data moat—the more students, the better the AI tutor. Launch employer-paid 'talent pipeline' product: companies pay $10K/year for priority access to graduates, co-branded bootcamp tracks, and custom curriculum modules. Expand to adjacent verticals: data science (Python, SQL, ML), cloud infrastructure (AWS/Azure certifications), cybersecurity (ethical hacking, SOC analyst training). Internationalize: launch cohorts in India, Brazil, Nigeria with localized pricing (5% ISA instead of 12% to account for lower salaries). Pursue outcomes-based accreditation (DEAC or regional accreditor) to unlock employer tuition reimbursement programs. Build alumni network platform (Slack community, job board, continuing education micro-courses) to increase lifetime value. Long-term moat: (1) Proprietary AI models trained on millions of student interactions, (2) Exclusive employer partnerships with hiring commitments, (3) Brand reputation for outcomes (publish cohort data publicly), (4) Network effects from alumni community. Exit options: acquisition by Coursera/Udacity ($100M+ if 5,000+ annual graduates with 80%+ placement rates), or scale to IPO (need 50,000+ annual students, $500M+ revenue, path to profitability).