Collective Academy

This case is about making the decision to become an entrepreneur and early challenges in setting up a business model and team. In 2015, Pato Bichara co-founded Collective Academy to create an affordable, three-year undergraduate experience to infuse innovation into Mexico's education system. Despite initial enthusiastic response, Bichara struggled to build the first cohort of students for the blended program. Nothing was what Bichara expected. He found himself single-handedly managing the stress of building the business without co-founders or access to capital. Bichara further believed a pivot in the business model design would be a better way forward. With savings running low, Bichara took a personal loan from his mother to cover daily expenses. Towards the end of the case, Bichara faced a decision on whether to go ahead with Collective Academy, or evaluate other job opportunities, which had the potential to provide Bichara with a more stable lifestyle. Bichara did not want to renege on commitments made to students, their employers and his investors for Collective Academy. But, how long could he last on no salary? Would he be able to scale the Collective Academy program without funding? If he walked away now, did that imply that Bichara was not cut out to be an entrepreneur?