Meeting Summary: Schoolhaus Pitch and Education Strategy Discussion

Overview

Extended catch-up at Soho House where Gary reconnected with Matt Holm and Zachary Smith after months apart. Gary shared his spiritual journey (Oklahoma falling through, baptism, sabbatical) and pitched his Schoolhaus concept for the first time to this group. Major revelation: Matt Holm was a 4th grade teacher for 10 years before real estate - providing unexpected expertise and validation. Zachary suggested getting Zach Levi as advisor/board member. Matt provided tactical advice on what parents want from education (outdoor time, efficient curriculum).

Key Topics Discussed

Gary's Life Update

Oklahoma Situation:

• Deal fell through after Gary gave up his lease
• Was told "we'll start August 1st" but assistant said systems weren't ready
• Left Gary effectively homeless in Austin
• Stayed with mentors and friends August-October
• Now paying rent to friend in South Austin

Spiritual Sabbatical:

"I really just took it as an opportunity as like a spiritual sabbatical."

• Woman received Gary's name in prayer, reached out
• She introduced him to his now-pastor in small town outside Houston
• Got baptized by that pastor
• "Critical spiritual period of my life over the past few months. Regrouping. Figure out like what I value and who I want to be."

Schoolhaus Pitch - First Time with This Group

The Opportunity:

"One thing I'm excited about is the policy that was passed a few months ago around education vouchers. $10,000. That's opening up opportunity for teachers that are not happy with their current schools, parents that may want to be entrepreneurial and get a bunch of families together to do micro schools."

The Business Model:

"It's going to be, like, my main startup. It's basically a school launch agency."

• Help teachers launch schools and share revenue
• Teachers are not entrepreneurial - need help with business side
• Church buildings empty 5-6 days a week - ideal locations

Gary's Positioning:

"Christian, tech, education, and media. So, and Texas, this is the first year this is happening. And what do I tell people? This is what I tell people while I came to Texas. God and tech."

Alpha Schools Struggling:

"Alpha is really struggling. They can't sell their $10,000 subscription. On their software. And it doesn't work very well... They raise money from people like the Koch brothers. And they feel like they have to grow. But they're not ready to grow. It's like you're trying to scale a product that doesn't have product market fit."

Matt Holm's Major Revelation

10 Years as 4th Grade Teacher:

"No one in your friend group knows that. No one knows that. I was a 4th grade teacher for 10 years... I got out of it because I made no money. I made $10,000 on side business."

• Left teaching because salary was too low ($2,800/month)
• Had side business paying $30,000/month
• Hated the education his kids got in Westlake High School
• Deep passion for education reform

Matt's Education Vision:

"Get my kids off their fucking screens, put them on a screen for two hours, and give them four hours of outdoor activities, done."

Two-Hour Curriculum Model:

"If you can get down to that two-hour curriculum, like Alpha does. And then we're going paddle boarding... If you can create within the day, free or almost free things that can be done. Hiking... your kids are getting outdoor sunshine... and getting the core curriculum more efficiently, at their pace."

Ideal 6-Hour School Day:

• 2 hours: academics at own pace
• 2 hours: choose your gift (guitar, filmmaking, etc.) - extension piece for extra fee
• 2 hours: outdoor/physical activity/playtime

"If you could get a six-hour school day that looked like that, I would send my kids."

Church Schools Strategy

Matt on Church Real Estate:

"They always have a breakout session and all you really need is the Sunday school class. You don't need the whole big congregation space. They always have a secondary space. And that is unused other than maybe Wednesday night services."

Zachary's Advice: Get Zach Levi

Board Strategy:

"Having Zach Levi on your deck will change your career... it will change the trajectory of your company a lot."

Advisor Structure Suggestion:

"Hey, can I give you $10,000 worth of advisor shares in exchange for me getting to put you in the deck as an advisor and getting to talk with you about it once a month for an hour."

Board Protection Strategy:

"If you raise money ever, they'll want a board. You do not want Joe [Liemandt] to stay on your board. You want Zach Levi... if Joe, you take money from Joe, which would be a really good thing, even Joe won't actually be on your board. He'll appoint a board advisor who you will fucking hate. So you need to just fill up an advisory board that's your friends that does not give a fuck what happens."

Zachary's Math on the Business:

"If it's $10,000 a student, if you can charge $2,000 for whatever your tool set is... one teacher would be able to have the skill set to manage acquiring 10 students... and teach 10 students. And if it's $2,000 a student, they're making $100,000 a year, that's more than they're making now, but then they own their classroom and it can be bespoke."

Zachary Smith Career Updates

DoD Opportunity:

• DoD wants him to join a specific company
• Flew someone to Austin to convince him
• Would be W2 plus additional compensation
• "If you can do what we think you may be able to do, you can buy the whole modern"

VC Interest:

• Gabe D'Amicello interested in giving money
• Lonsdale's group (APC) interested
• Larry Covert interested
• All contingent on Zachary finding something he believes in
• If he takes money, likely something related to electric grid

Former Client Drama:

• Left after 5 years, CEO relationship soured
• They hired production company at 10x the price
• Production company failing badly
• Production company called Zachary to consult at 4x his previous rate
• Zachary declined

Matt Holm Updates

New Club Opening:

• Needs more fundraising
• South By alone: $1M in bookings (base rent)
• With production/employees: ~$1.35-1.40M for 9 days
• Spotify came in to book
• "Nobody wants to invest in hospitality" but this is "bread and butter convention center breakout stage"

Austin Convention Strategy:

• Austin becoming Class 2 convention city
• Will go from 4 to 50 conventions per year
• Great for Monday-Friday business

Property Work:

• Clearing 4 acres of cedars for $6,500
• 6-acre plot outside Austin

Personal Life:

"Up and down, down, down, up, down, down, down... Just enough roller coaster. Just when I think I'm out."

Brad Gerstner Event

Zachary Hosting:

• Brad Gerstner (Altimeter Capital, $200B AUM) potentially moving to Austin
• Zachary co-hosting event with Evan Baehr and Clark Nowlin at Arena Hall
• Originally LPs only, now opened to exceptional invitees
• Michael Dell probably coming
• Joe Liemandt on the invite list (Evan wrote why he's cool)

Zach Levi Ranch Discussion

Recent Event Issues:

• No shooting happened (people thought it was a sex scene)
• Studio economics problematic - swimming against currents
• Matt suggests hotel as better Phase 1 economic engine than film studio
• Cell phone restriction causing controversy: "No phones until 16" for residents
• Mixing movie studio, housing, hotel, farmer's markets with parenting requirements problematic

Matt's Hotel Suggestion:

"If you go to a $100 hotel, you will have a higher booking rate than a $600 hotel."

• Better economic engine to start
• Tiny and operated
• Anyone in RV or adventure travel would pay

Dawson's Pastor

Zachary's Observation:

"Of pastors I've met in Austin, he's disproportionately more entrepreneurial... that guy is super entrepreneurial."

• Gary confirmed he was just with him on Sunday
• Potential church school partner

Key Quotes

Gary on His Positioning:

"Christian, tech, education, and media. This is the first year this is happening. And what do I tell people? God and tech."

Matt's Education Philosophy:

"Get my kids off their fucking screens, put them on a screen for two hours, and give them four hours of outdoor activities, done."

Zachary on Board Strategy:

"You need to just fill up an advisory board that's your friends that does not give a fuck what happens so you already have the board."

Zachary on the Business Model:

"If it's $2,000 a student, they're making $100,000 a year, that's more than they're making now, but then they own their classroom and it can be bespoke."

Matt on Church Real Estate:

"All you really need is the Sunday school class. They always have a secondary space. And that is unused other than maybe Wednesday night services."

Action Items / Takeaways

1. Matt as Education Advisor - 10 years teaching experience, unexpected asset
2. Pursue Zach Levi as Advisor - For deck credibility and board protection
3. Connect with Dawson's Pastor - Entrepreneurial, potential church school partner
4. Church School Strategy Validated - Matt confirms secondary spaces underutilized
5. Follow Up with Matt - "I think it's so cool that you're a teacher. I think we have a lot more to talk about."
6. Sports Academy Vector - Gary mentioned working with sports academy for daycare + education
7. Taron Wells Connection - Gospel artist who hosted Christian Grammys

Strategic Implications

Schoolhaus Validation:

• Zachary immediately understood the business model and validated pricing ($2K/student)
• Matt's teaching background provides unexpected expertise and credibility
• Church school strategy resonated with Matt's real estate knowledge

Network Leverage:

• Zach Levi as potential advisor for credibility
• Matt's education passion could be major asset
• Dawson's pastor as church school pilot

Competitive Positioning:

• Alpha struggling with PMF and pricing
• Opportunity to capture market with better approach
• First-mover advantage in Year One of TEFA