By: Devin Fussa
Five years ago, Saint Francis High School in Mountain View, California invested a small sum into a new company by the name of Snap Inc. One of the school’s students had told her father, Barry Eggers, about a new app – Snapchat – and Eggers decided to contact the private Catholic school. He suggested investing in the company. While Eggers, a venture capitalist, prompted his own company to invest, he thought the school might also serve to profit. With an investment fund to back local startups, the school put forth $15,000 (CNN).
This year, Snap Inc. decided to go public on the stock market, openly trading with the New York Stock Exchange at a value of $33 billion. When Saint Francis High School had originally invested in the company, it was valued at about $4 million. Now, Saint Francis has disclosed their newfound wealth; they made at least $24 million off of their stock shares.
With the money, the school intends on lowering attendance costs (currently $17,000 a year) and hiring more staff. Furthermore, the school has currently only sold two thirds of its shares in Snap Inc. They are retaining the last third for future considerations. “I think everyone understands it’s a pretty transformational event for our school,” said school President Simon Chiu (The Guardian).
Saint Francis High School certainly made a wise investment five years ago. Today, they reap the rewards of that gamble. Not all risks see such a profit, but this incident shows that hitting a metaphorical “jackpot” is possible. Hopefully, they use their funds in meaningful ways, in an effort to forward both education and public interest.