Martin Borchardt, Henry | Edtech's Challenges, and the ISA Opportunity in LatAm [Ep. 4]

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The audio and video are in Spanish. These notes are a translation.

In Latin America, very few people have access to quality higher education that generates a return on their investment. As if that were not enough, high underemployment rates show that many people are working in something they did not study for at university or at an institute. And, if we had any doubt that the current education system was not working in terms of quality or access, the pandemic made sure to erase them. That is why we are happy to welcome Martin Borchardt, cofounder and CEO of the Argentine edtech Henry.

Henry is the remote software development school where you only pay when you get a job. Henry went through the Y Combinator accelerator and recently raised a seed round of USD $1.5 million led by Accion Venture Lab, in addition to having angel investors such as Tim Draper and Mike Santos.

What You Can Learn Today

  • Income Share Agreement model (ISA, in English)
  • Challenges in the Edtech sector
  • Retention and scaling strategies

If you like the podcast, the easiest way to help us is by leaving a review with ⭐⭐⭐⭐⭐ on Apple Podcasts. It takes less than 1 minute and helps us convince the hardest guests to land, such as David Vélez, CEO and founder of Nubank, whom we would love to interview.

The Story Behind Henry and ISAs in Edtech

  • [2:04] - How did Martín arrive at the world of startups?
    • Martín’s first steps in the world of entrepreneurship
  • [4:02] - The story of Nubi
    • A cross border payments fintech in Argentina
    • Which companies partnered with Nubi?
  • [7:16] - Henry: its value proposition and business model
    • The talent deficit and the limited educational offering in technology
    • Income Share Agreements (ISA, in English)
  • [11:29] - Henry’s pivot
    • The inflation problem in Argentina
    • The low quality of teaching at technology academies
    • The problem with physical teaching spaces
  • [13:28] - How does the Henry edtech work?
    • The teaching and collections model
  • [18:03] - The Income Share Agreements (ISA) model in LatAm
    • Are ISAs the future?
    • The advantages of the ISA and equal access to opportunities

Opportunities and Challenges of Edtech in Latin America

  • [24:00] - The future of education certifications in Latin America
    • The role of technology companies
    • Is live online education the best alternative?
  • [27:40] - Edtech trends and the sector’s challenges
    • Latin America, an attractive market for edtechs
    • How to achieve good customer retention according to Martín
  • [33:10] - What is the Henry edtech’s scalability model?
    • Trust your own talent
    • How do Henry’s developers get jobs?
  • [38:56] - The admissions process for finding the best talent inside Henry
    • What percentage of applicants finish the selection process?
    • The Henry Challenge
  • [42:05] - Recommendation for starting a company in the Edtech sector
    • The educational gaps in primary and secondary school

Fundraising and the Future of the Henry Edtech

  • [45:48] - Henry’s seed round
    • Why did a fintech fund invest in Henry, an edtech?
    • The Lambda School effect so that Martín’s startup could raise capital
  • [50:22] - What will Henry invest the amount raised in the seed round in?
    • The launch into new markets
  • [52:19] - The future of Henry with the Income Share Agreements model
    • The largest Edtech market according to Martín

Tweet Round

  • [54:29] -
    • Recommended books: How to Win Friends & Influence People
    • A change in the world of startups: more investment at the seed stage
    • The entrepreneurs Martín admires the most: Marco Galperin, Pierpaolo Barbieri, David Velez, Simón Borrero

Episode Mentions

Recommended books: How to Win Friends & Influence People

Venture capital funds mentioned: Accion Venture Lab

Entrepreneurs mentioned: Marco Galperin of Mercado Libre, Pierpaolo Barbieri of Ualá, David Velez of Nubank, Simón Borrero of Rappi

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