New York High School Promises Million-Dollar Businesses or Full Tuition Refund
Founders School charges $150,000 annually, betting on students to launch profitable ventures within four years.
A new high school in New York City's Financial District is offering an audacious proposition: guarantee students will graduate with businesses generating at least $1 million in profit, or refund their entire $600,000 tuition.
Founders School, which opened in September, charges $150,000 per year, with the full tuition of $600,000 being refundable if students do not achieve the $1 million profit benchmark by their fourth year.
"It’s bold but I don’t think it’s crazy," said Nat Eliason, the school's 33-year-old co-head and an entrepreneur who previously sold his content marketing agency, Growth Machine. Founders School is an offshoot of Alpha School, a network of AI-based learning centers founded in 2014.
The school currently has 21 students enrolled, with 15 based in Manhattan and six in Austin, Texas, who travel to New York for collaboration.
Students at Founders School spend the mornings in condensed, AI-assisted core subject learning, which typically lasts two to three hours. The afternoons are dedicated to working on business plans, product development, and entrepreneurial activities, supported by mentors and an AI platform.
One student, 15-year-old Sanjay Divakar, who transferred from his public school, has been developing a B2B software product since July. By the time he started Founders School, his venture had already generated over $10,000 in revenue. He aims to reach $100,000 in revenue within 100 days and $20 million by graduation, with aspirations for his company to go public within a decade.
Founders School operates on a model where AI handles core academic instruction, freeing up time for entrepreneurial pursuits. The school emphasizes that academics are not compromised, with students needing to master concepts before engaging in business activities. Unlike traditional schools, there are no teachers, only human "guides" who assist students as needed.
The school's approach comes as the use of AI in education becomes a contentious issue. New York City recently implemented rules banning AI in public elementary and middle schools, with limited pilot programs for high schoolers. However, these regulations do not apply to Founders School or Alpha School, as they are private institutions not formally recognized by the New York State Education Department, and students are registered as homeschooled.
Some critics question the intense focus on entrepreneurship at such a young age, expressing concerns about potentially sacrificing traditional academic foundations. However, Founders School asserts that its curriculum is delivered through a personal learning platform, ensuring students grasp concepts thoroughly before focusing on entrepreneurial endeavors.