Chip Paucek
CEO and Co-Founder, 2U
Problem
Graduate on-line education is one of the fastest growing segments of the higher education market and universities are trying to respond. Universities have limited access to capital, technology enhancements and marketing expertise. By partnering with the private sector, universities can move rapidly into the on-line space. For-profit companies can do what they do best, but do not have the faculty and reputation associated with some of the finest institutions in the United States. Partnerships between the private sector and higher education allow universities to respond more quickly to how students want to learn. Innovation By pairing a for-profit company with a non-profit university, 2U has created an opportunity for both parties to capitalize on what they do best. 2U brings to the table capital and resources needed to advance a university’s ability to bring a degree program on-line. By dedicating ten million dollars in resources to each program they bring on-line, they are able to develop state-of-the art technology platforms, provide infrastructure support and develop global marketing strategies for each of their degree programs. Universities bring their most valuable resources - their faculty and their reputation. Together, they are committed to designing courses on-line using the best technology and pedagogy available and are able to deliver degrees to students who are not able to relocate or attend face-to-face courses delivered in a traditional fifteen week semester format. Impact In the last five years, 2U has gone from a small start-up company with one university partner, to a firm of 600 employees with 16 university partners and a new undergraduate semester on-line program. 2U has raised $102 million in venture capital, and collected over $230 million in tuition across all its programs this year. 2U’s percentage of revenue is determined by the revenue sharing models in place with each university. Collectively, 2U graduate programs boast a retention rate at the graduate level of 84% and the job placement data is comparable or better than the on-campus program. Chip Paucek projects that close to 10,000 students will be enrolled in a 2U program by next year and 2U is now delivering 1,146 live classes per week. Skills This is not Chip Paucek’s first venture capital start-up and it will not be his last; nevertheless, it is without a doubt his most successful venture to date. He is the first to admit he has learned more from his failures than his successes. In reflecting on his failures, he describes a trait innovators have which is a tendency to “lean towards yes.” New ventures and ideas excite him, but in the past he acknowledges that a lack of focus on the original mission of the company has steered him off course. With 2U, he has been committed to enhancing the student experience just as Amazon has built its business focusing on the customer experience. He enrolled as a student in the MBA program and through observing how others interacted with the Learning Management System, he was able to suggest a number of enhancements to the platform. More importantly, his interactions with students led him to refocus his marketing strategy and focus more on the people, not the platform. He believes education is transformative and he hires people who share in this value, not those who are simply focused on the bottom line. His company has undergone rapid growth and expansion in the last five years, requiring him to experiment with the structures and processes needed to ensure that both students and professors are well served. |
Bio
Chip Paucek, is the Chief Executive Office and co-founder of 2U, formerly known at 2tor. Chip was recently awarded the 2012 Entrepreneur of the Year Award for Innovation for his work with 2U. Prior to joining 2U, Mr. Paucek was the CEO of Hooked on Phonics, co-managed U.S. Senator Barbara Mikulski’s election campaign and began his career by founding Cerebellum Corporation. He received his B.A. from George Washington University and is currently enrolled in one of 2U’s programs - the MBA from the University of North Carolina at Chapel Hill. |