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GSV Capital is the first publicly traded security giving growth equity investors access to the world's most dynamic, VC-backed private companies.

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NASDAQ: GSVC
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Why We Like

$4 million NAV|1.8% of GSVC

Founded

2003

Capital Raised

$59 million

Investors

GSV Capital along with Raine Partners, Salmon River Capital and others.

GSV Investment Theme

  • Cloud/Big Data
  • Marketplaces
  • Sustainability
  • Education

Overview

Parchment is the leading electronic transcript (e-Transcript) exchange in the U.S., with more than 8,000 high schools and postsecondary institutions as clients. Thus far, Parchment has facilitated the exchange of more than 20 million transcripts using their Docufide and Avow SaaS platforms. Beyond providing the cost and operational efficiencies of electronic transcripts, Parchment works with learners and institutions around the world to unlock the value behind transcript and credential data. Parchment has continued to progress towards being the worlds preeminent knowledge broker.

4Ps
Why We Like It: The Four Ps

Why We Like Parchment

We believe that Parchment has the ability to deliver exceptional service with the electronic efficiency of transcripts, and, more importantly, to become the leader in putting transcript credential data to work.

People

The Parchment team, led by CEO and former Blackboard founder Matthew Pittinsky, Ph.D., has extensive experience within the education space. We believe this team is capable of not only cornering the transcript market, but also building Parchment into the leading knowledge, skills, and abilities broker in the U.S.

Product

Parchment’s platform allows students to take on the college selection and application process head-on by allowing them to research colleges, review their chances at admission to specific schools of interest, compare their test scores and grades with their peers, get college applications, and even send official transcripts during the application process. Parchment’s SaaS platform, Docufide, has become the most trusted education intermediary in the country and the number one provider of academic transcripts and other student records to schools around the country. Their current network of senders and receivers includes six state education agencies, more than 9,000 schools and universities, and thousands of individuals.

Potential

The U.S.-based education market consists of 76 million primary, secondary, and postsecondary students. Furthermore, over ten million college applications are completed which generate an estimated $400 million in admission application fees. Today, students are applying to more colleges than ever before, with over 30% of high school seniors applying to more than seven colleges, compared with only 10% in 1997. While, 80% of college applications are completed online, the transcript exchange process still represents a largely on-paper/in-person practice.

Megatrends

Knowledge

Convergence

Globalization

Brands

Internet

How Big Can This Be?

The education market remains a uniquely large untapped end market, particularly in the transcript exchange space. Parchment has the potential to corner this market and parlay it into becoming the central intermediary of knowledge and skills.

Predictability

Parchment currently has attained a 30% market share in the transcript market and can continue to aggressively expand its market share through referrals and their salesforce. This is an extremely predictable line of business for Parchment to be in and we expect them to dominate the e-Transcript sector.

Risks

Parchment’s largest risk surrounds its ability to transition from the e-transcript market to become a broker of knowledge, skills, and abilities.

GSVC percentage figures are based upon the fair value of each holding as of the quarter ended September 30, 2016, or the cost basis of the holding (exclusive of transaction costs) if the investment closed subsequent to September 30, 2016. In either case, these values are divided by the fair value of total portfolio investments of GSV Capital as of September 30, 2016.

GSV stands forGlobal Silicon Valley
Learn more at GSV.com