Venture Capitalists Are Poised to "Disrupt" Everything About the Education Market

http://www.truth-out.org/news/item/26485-venture-capitalists-are-poised-to-disrupt-everything-about-the-education-market
In his book, Finding the Next Starbucks: How to Identify and Invest in the Hot Stocks of Tomorrow, Michael Moe, describes how carefully crafted business strategies have transformed markets to create huge profits in unlikely sectors. The title relates to how Starbucks became a global corporation of almost $15 billion in revenue by capturing and streamlining the café experience. Moe, a former director at Merrill Lynch, wrote that at one point in the United States, even healthcare was an undesirable and difficult industry for investment, and that bankers once worried if profit-making in such a realm was worth their effort. In 1970, healthcare spending comprised 8 percent of GDP, yet market capitalization in healthcare stood at less than 3 percent. That shifted quickly not only as the boomer generation aged, but as a wave of privatization hit hospitals, insurers, and other segments of the healthcare system. More than thirty years later, Moe wrote, healthcare companies are among the largest in the world, and represent more than 16 percent of US capital markets. “We see the education industry today as the healthcare industry of 30 years ago,” Moe predicted.