Investing in Human Capital: What We’ve Learned The Philanthropy Roundtable Boston, MA September 11, 2008

2 NewSchools’ Mission: Transforming Public Education To transform public education through powerful ideas and passionate entrepreneurs so that all children – especially those underserved – have the opportunity to succeed in the 21st century.  Identify the most promising education entrepreneurs  Use engaged venture philanthropy to help build early-stage, high-impact education organizations  Develop networks of thought leaders across the business, education, nonprofit, and policy communities in order to help our ventures succeed and create leverage for broader systemic change Theory of Change

$500B in K-12 Public Education Spending 3

Teacher Attrition  17% of all teachers leave their jobs each year  25-33% of new teachers leave within 3 years  40-50% of new teachers leave within 5 years  Teacher attrition rates have increased by 50% in the past 15 years  Teachers with the highest scores on certification tests are twice as likely to leave as those with the lowest scores 4

Reasons Why Teachers Leave 5 Source: U.S. National Center for Education Statistics ( ) NOTE: respondents could choose more than one reason, so percentages add up to more than 100%

Distribution of Out-of-Field Teachers 6

Human Capital Value Chain Evaluate & Retain with Accountability Induct, Support & Develop Prepare & Credential Recruit & Place Teach for America The New Teacher Project New Leaders for New Schools KIPP Fisher Fellowship High Tech High Graduate School of Education AUSL teacher residency The New Teacher Ctr. Teacher Advancement Program RISE

8 Distribution of National Investments Source: NewSchools Venture Fund, survey of 13 large foundations Number of Grantees