When an investment firm leader talks about empowering people who can all too easily miss out on prosperity, it helps when that leader has been down the same road themselves.
That exactly explains the position of Sabari Raja , who is managing partner of JFFVentures, an impact venture fund that concentrates on technologies affecting workforce development, career advance and mobility. The organization engages with wealth managers, foundations, family offices and high net worth individuals.
Sabari Raja
“Many immigrants come to the US with a professional skillset but do not have the English language proficiency to translate those skills to the workplace,” she told this publication.
“One of our portfolio companies, Pace AI, is focused directly on this issue, serving the 60 per cent of immigrants with limited English language proficiency that may lead to lower wages. Pace AI bridges the gap between language acquisition and workforce readiness for English language learners, catalyzing both educational and career advancement.
Raja’s experience explains some of her passion for fixing these problems.
With a background in building businesses in areas such as technology, Raja, who comes from India, is an electrical engineer by training. She obtained a bachelor’s degree in electrical engineering from Bharathiar University, India, a master’s degree in computer science, Louisiana State University and to round it off, an executive MBA from Southern Methodist University’s Cox School of Business. She now lives in Austin, Texas and is an exited edtech founder with 20-plus years' experience operating high impact, high growth companies.
Skills challenge
That millions of US workers don’t have the necessary skills for an economy being roiled by AI, changing patterns of trade, and other forces is a big problem.
“A huge percentage of the US workforce is making less than $50,000 per annum,” she said.
JFFVentures – a non-profit – invests in businesses seeking to tear down barriers preventing people acquiring the skills they need, for example groups who are under-represented in the workforce today, Raja continued.
Case studies
To illustrate how JFFVentures works, its JFFVentures’ portfolio companies include Pace AI, Kollegio and Manifest. Take the case of Pace AI – it helps people to understand higher level content so that they can complete a course, to the point where they don’t just speak and write English but understand the technical parts of the language. Or, in the case of Kollegio, this firm – built by immigrants – connects students with colleges, helping potential students with personalized advice with entry requirements, for example.
A common thread in JFFVentures’ portfolio holdings is education.
“The question is how to advise people as a lifelong learning opportunity?” Raja told this publication.
Raja said she measures success at JFFVentures by how many people achieve goals such as completing educational courses and getting high-quality jobs – and for her organization, delivering investment returns.
A recent study by Jobs for the Future/Gallup found that 60 per cent of American workers lack a quality job. Some 72 per cent of jobs will require post-secondary education or training by 2031, but only 53.1 per cent of people have a college degree. To top it off, AI and automation are changing the skills needed for certain jobs, with 70 per cent of skills used in most jobs expected to change by 2030.
By the numbers
To get into the hard details about investment returns at JFFVentures, Raja said the organization targets a return of three times net multiple on invested capital , and 20 to 25 per net internal rate of return; there is a traditional venture fund term at 10 years.