Meeting Summary: Schoolhouse Agency Formation and TEFA Strategy

Overview

Pivotal multi-hour session where Gary and Ron committed to building "Schoolhouse" - an education agency - together as 50/50 partners. Initial vision of a matching system evolved into a clearer strategy: capitalize on Texas TEFA government subsidies by converting teachers into microschool entrepreneurs, with Prenda as the platform partner. Discussed Ron's personal brand strategy ("building the future of education in public"), POV content with Meta Ray-Bans, and positioning to eventually create FOMO with Joe Liemandt. Both agreed this represents the most important work they could be doing.

Key Topics Discussed

The Core Vision: Legitimacy Layer for Education

The Problem with Current Landscape:

• Cost of software going to zero creates noise and need for curation
• Easy to fake reviews, deep fakes eroding trust
• Referenced Vitalik Buterin: "There's nothing more scarce than legitimacy. Legitimacy is the scarcest resource in the world."
• Alpha Schools critique: "A ton of money. Zero legitimacy."

The Solution - Living at the Legit Layer:

"Why not just literally live at the legit layer? That's the layer on top of everything. Because there's nothing there right now."

• Central source of truth built on trust
• Unwavering values with transparent decision-making matrix
• Layer of regulation/curation above all vendors and providers
• No exclusivity with vendors - open marketplace with quality standards

Pivot: Not a Matching System - An Agency

Gary's Critical Realization:

"I don't like the matching system. Because the liquidity problem is gonna be fucking massive. Because it's not like there's a ton of micro schools and private schools... we have to be creative on both sides of the marketplace."

The Real Strategy - Convert Teachers:

• Focus on entrepreneurial teachers wanting to start schools, not matching existing supply
• "If you want to start a micro school, work with us. Because that's the economic opportunity."
• Lawyer contingency model: "We're almost like lawyers... hey, did you get injured? You don't have to pay us any lawyer fees. If we win, we take thirty percent"

Schoolhouse as Agency Name:

"Schoolhouse is a great fucking name for an agency that's helping build fucking schools."

TEFA Government Subsidy Strategy

The Core Insight:

"We're basically creating an agency to milk government dollars."

"Texas like these billionaires are spending so much money on providing subsidies for people like us to eat. That's the whole game of Silicon Valley these days too. It's literally spend billions of dollars to get trillions of dollars of subsidies."

February TEFA Launch:

• Texas government will promote TEFA heavily to parents (demand side)
• Schoolhouse creates supply side - helping teachers start microschools
• "The state of Texas is gonna spend money in just a couple of months. That's coming up in February. I want to meet that moment."
• "There's going to be an overwhelming amount of demand... they're going to put so much money in ad spend... with nowhere for all of the energy and there's not going to be enough people to build."

Prenda Partnership:

"It's funny because Prenda doesn't have enough money to pay me to be like the schoolhouse for Prenda. This is the perfect frickin opportunity, bro."

• With Prenda, you only need TWO kids to start a microschool (one can't be your own)
• "All of a sudden that deal of a thousand for a fucking school actually becomes like... we'll make money on both freaking sides"

School Designer App Concept

Analogy to Home Design Apps:

"You know how people, there's a bunch of apps that are like, predesign your home... I think what we needed to do is create a school designer app."

Building Blocks Approach:

• Stories/modules as building blocks that combine based on circumstances
• "Open source learning modules is the future"
• Context-aware recommendations based on culture, socioeconomic factors, location
• "Hugging face for school/learning modules"

Teacher Conversion Strategy

Conference/Revival Model:

"We go around these different cities. We host like fucking conferences for teachers that are like just look up the stats of how many teachers feel like they're underpaid, undervalued, can't do what they actually want. We're going to be like preaching like can I get an amen? And then we bring Ida, right? Pay her whatever to help speak about her experience 30 years in these schools. Convert so many people."

Ida as Model:

• Ida has 30 years in San Antonio education, loved by hundreds of families
• She already knows who to call when starting a school
• Better than digital platform matching - real relationships

Ron's Personal Brand Strategy

"Building the Future of Education in Public":

"Day 75 of launching the future of school. Real time, vulnerable. Real time and real."

The Narrative:

• "You were selling schools. And then you're like X, Y, Z. Here's why it didn't work. I'm going to launch schools. I'm going to get in the arena. And I'm going to document that. I'm going to tell everything that I learned."
• "Follow me on my journey to do this"
• Gary will be "a character in your reality show"

POV Content with Meta Ray-Bans:

• Gary advocates for first-person perspective content
• "Part of why I love Ray Ban is like, this is just about being in the arena. It's actually like annoying to hold your phone."
• "POV, like. Day 75 of launching the future of school."
• Potential Meta Ray-Bans sponsorship opportunity

Core Values: Lived Experience

"The Advice Comes from the Arena":

"Schoolhouse is - the reason why we are an authority in thought leadership is because we're freaking living it."

"We are in the arena. The advice comes from the arena. I think that's really, really important."

Parents as Core Customer:

"Who is our main customer that we care about? It's parents. Fuck the schools."

"We have no product that's unique to anything else if we don't tell the parents the truth. If we make certain business decisions where we're more of like an ad company for tools, no. That sucks."

Scientific Method Approach:

• "At every point that we're consulting, we're applying our best theories. And testing them. And we're honest about being wrong."

Alpha Schools Critique

Organizational Dysfunction:

• Joe Liemandt "sneaky about his shit" and "embarrassed because he hasn't been able to produce anything"
• Doesn't apply his own principles: students have Alpha Bucks incentives, but sales team has no commission
• Put $100M into gaming company (Fortnite guys) who then pivoted away from education

Brownsville as Cautionary Tale:

• Kelly Smith (Prenda) asked Gary about "the Brownsville thing"
• "Milking the local community for very questionable results"
• Lesson: "It doesn't work. It's culture."

Joe FOMO Strategy:

"When you're outside of his orbit he wants to be in your orbit."

"I think it's one of those things where it's like you have to build it and he's like oh shit they're real."

• "He moves fast when he feels FOMO"
• Strategy: Build successfully outside Alpha, then Joe will want in
• "There's a way for us to be truly on the outside of Joe and just give him alpha. Like once we have successfully launched schools without him."

Vendor Certification System

No Exclusivity Model:

• "You shouldn't have any exclusivity with vendors. That's how you solve the problem."
• Transparent process for how vendors get approved
• Similar to LEED certification model

Vendor Qualification Framework:

• Process for approving vendors based on quality metrics
• "If you wanna get on the vendors list, these are qualifications and how you apply"

Potential Partnerships

T-Mobile Education Strategy:

• Ron's coach is head of education strategy for T-Mobile
• Job: give access to Wi-Fi and technology to eliminate digital divide
• Potential: "How can Schoolhouse be the default school partner for you?"

BIPOC Wall Street Training Company:

• Ron connected to company that trains and places BIPOC students in financial institutions
• They have partnerships with every major bank
• Want to use AI to create screening tests and personalized learning plans
• Model for how Schoolhouse could work with other organizations

MVP and Launch Plan

Immediate Priorities:

1. Values Website - "Values on website. That makes sense."
2. Visual Manifesto - "Something that's really strong and powerful, really well done"
3. Trailer/Mini Movie - Potentially with Creator Camp kids
4. Personal Brand Content - Ron documenting journey daily

Sequencing Strategy:

• TEFA launch in February as forcing function
• South By Southwest as major event moment
• "Reverse engineer. We know South By is this date. How do we build up momentum for South By?"

Revenue Path:

• Commission from schools launched (contingency model)
• Potential sponsorships from vendors
• "We just need to be able to start to implement"

Airbnb Analogy

Wraparound Services Model:

"You know how like people have made like a ton of money doing wraparound services for Airbnb hosts. Great photography for the properties. Good descriptions, etc. And then sometimes they're running the freaking Airbnb themselves. Sometimes redecorating a shed."

• Schoolhouse provides similar wraparound services for microschool founders
• Not above doing the work themselves initially
• Gary referenced Naval: when building AirChat, he was "in the trenches, constantly talking to users and posting himself"

50/50 Partnership Commitment

Ron's Commitment:

"If you're gonna build this with me, yes. Because I need help. I can't do it by myself. If you're committed, I'm committed. I'll be done with alpha tomorrow."

Gary's Response:

"Are we fifty fifty yet? In terms of ownership? Yeah. What are we doing, sir?"

One Year Vision

Goals:

1. Best parent-student placement system for schools
2. Relationships with every important/viable ed tech school network
3. Most culturally relevant voice in education space
4. Attract stakeholders from all angles to amplify mission
5. Team of 2-3 other people by next summer

"It should be very clear that this was like the right decision."

Fundraising Philosophy

Mission-Driven Abundance:

"If we're ever like, damn, we have insecurity around this level of expertise needed to make this decision, we can hire help, we can solicit help, even if it's capital. Who's not going to fucking give money to something that is so purposeful?"

"Who's gonna give a kid in the world a world class personalized educational experience? Give me money. Who's gonna say no?"

Travis Oliphant Option:

• May also want to invest
• "The reason why we might take money is just to seize the opportunity because the billion dollars is going to go quick otherwise"

Key Quotes

Gary on the Pivot:

"I don't like the matching system. Because the liquidity problem is gonna be fucking massive."

Gary on TEFA Strategy:

"We're basically creating an agency to milk government dollars... There's going to be an overwhelming amount of demand."

Gary on Schoolhouse:

"Schoolhouse is a great fucking name for an agency that's helping build fucking schools."

Ron on Teacher Strategy:

"So if you want to start a micro school work with us. Because that's the economic opportunity."

Gary on Lived Experience:

"Schoolhouse is - the reason why we are an authority in thought leadership is because we're freaking living it. We are in the arena. The advice comes from the arena."

Gary on Parents:

"Who is our main customer that we care about? It's parents. Fuck the schools."

Gary on Joe FOMO:

"When you're outside of his orbit he wants to be in your orbit. He moves fast when he feels FOMO."

Ron on the Moment:

"There's going to be an overwhelming amount of demand... they're going to put so much money in ad spend... with nowhere for all of the energy and there's not going to be enough people to build."

Action Items / Takeaways

1. 50/50 Partnership Formalized - Gary and Ron committing to build Schoolhouse together
2. Ron Leaving Alpha - "I'll be done with alpha tomorrow"
3. Values Website First - Establish core values publicly
4. Visual Manifesto - Powerful pinned content for Twitter
5. Ron Personal Brand Launch - "Building the future of education in public" daily content
6. Reach Out to Existing Contacts - Gary's leads from consulting, Ron's from Alpha
7. Plan TEFA Moment - February launch alignment
8. Plan South By Event - American Education Summit at SXSW
9. Connect with T-Mobile Education - Through Ron's coach
10. Story Template Development - Formula for how to tell school founder stories

Strategic Implications

Schoolhouse Agency Launch:

• Not a marketplace - an agency helping teachers start schools
• Contingency fee model (like lawyers)
• Capitalize on TEFA government subsidies
• Prenda as platform partner

Differentiation from Alpha:

• In the arena vs. commentating from bleachers
• Trust/curation focus vs. vanity metrics
• Parents as customer vs. investor optics
• Lived experience vs. theoretical

Content Strategy:

• Ron as face of "building in public" journey
• POV content with Meta Ray-Bans
• School founders as content source (requirement to share reflections)
• Potential reality show elements