Income Sharing Agreements in Education with Tonio DeSorrento and Ali Hamed

Erik’s co-host for this episode is Ali Hamed (@AliBHamed) of CoVenture. They are interviewing Tonio DeSorrento (@TonioDeSo), CEO and co-founder of Vemo Education.They talk about the history of income-sharing agreements, including that Milton Friedman had once proposed the idea and that Yale University had experimented with them at one point.Tonio talks about starting Vemo and how he has brought income-sharing agreements to more and more educational institutions. They discuss the fact that 88% of students entering college are doing so to improve their early career path but that most institutions would say that providing a career path is not the primary value they provide. Tonio explains that Vemo has helped students find the right institution for them by publishing outcomes from the income-sharing agreements. He says that this transparency of outcomes has in and of itself changed how colleges look at the service they provide.They move on to talking about the future of higher education in general, why there doesn’t yet exist a Kickstarter for education (and what some of the pitfalls of that model would be) and in which other industries something similar to income-share (or “value-share”) agreements might make sense. Tonio also talks about how Vemo plans to scale and where they go from here.Thanks for listening — if you like what you hear, please review us on your favorite podcast platform. Check us out on the web at villageglobal.vc or get in touch with us on Twitter @villageglobal.Venture Stories is brought to you by Village Global, is hosted by co-founder and partner, Erik Torenberg and is produced by Brett Bolkowy.