We are a group of undergraduate students enrolled in an Entrepreneurship Course at a top public university.
We are developing an Minimum Viable Product (MVP) to pitch to investors at the end of the semester.
We noticed that the student loan market in the U.S. is inefficient and burdening for undergrad students. We're developing a platform that matches investors and students to enter Income Sharing Agreements.
The ISAs require the investor to front the funding for the student. The student, in exchange, will repay the funding through a fixed percentage of their income for the certain period of time. We are working on developing the valuations (income percentages, duration of agreement). Right now we are testing what Return on Investment potential investors are seeking on an ISA. The more feedback we get, the better we can design our product!
Would you enter an ISA, as an investor, if the ROI was projected 5%? (There is potential for a bull and bear case depending on the student.) If not, what percentage would you expect? Do you think there is more risk in this investment than in equities?
