The $1.2B Blind Spot: How One Startup is Revolutionizing Internships

From public housing to Google to unlocking billions in government funding — meet the founder who wants to double the number of internships in America

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Mar 12, 2025

Here's a stark reality: only 20% of college students are able to land an internship.

For Cathy Huang, that statistic hits close to home. She went from public housing in Detroit to landing an internship at Google - an opportunity that completely changed her career trajectory. Now as founder of Folio, she's building what she claims could be a solution to America's internship crisis.

"Anyone can do almost anything if they're willing to have the level of pain tolerance and commitment to make it happen," Cathy told me when she pitched on our show. But here's the thing - most students aren't being held back by lack of commitment.

They're being held back by cold, hard cash.

The $50,000 problem

Companies spend about $25,000 per intern just on sourcing, training, and paying them. And since only half of interns convert to full-time roles, you're really looking at $50,000 per successful hire.

"That's a ton of money. Way too much for most companies," Cathy explained.

The result? A massive supply-demand mismatch: 4 million internship spots for 20 million students.

Southwest Airlines loses $50K on intern Josh Muccio in 2009.

A billion-dollar solution?

But here's where it gets interesting... There's actually $3 billion just sitting there, waiting to be used. It's government money, and $1.2 billion of that is earmarked for Work Study, a program meant to help prepare students for the workforce.

The catch? Getting your hands on that money means wrestling with bureaucracy and jumping through hoops at multiple universities. Most companies take one look at that mess and run the other way.

Enter Folio.

Folio's pitch is straightforward: they handle the red tape, letting companies tap into these subsidies instantly. Cathy says they're the first company approved to serve as an employer of record for Work Study funds.

And the savings for companies are significant - 50% off intern wages, around $10,000 per intern.

Early traction

The numbers so far are intriguing:

1,000+ students placed
500+ company partners
$1.2M annual run rate
Secured $600M in government subsidies

Their pricing model appears sustainable: startups pay $250 per intern monthly, enterprise clients $1,000 - both theoretically seeing net savings through the subsidies.

The future of education

"I think the future of education looks very different," she told us. "It's a third academic, a third practical where you're in internship... and a third professional where you figure out who you are."

When Cathy calls Folio her "life's work," you can tell she means it. This isn't just about making internships cheaper – it's about completely reshaping how we think about education and career development.

"In order for that to happen, we have to dramatically lower the cost of internships," she says. And with the early success they're seeing? They might actually pull it off.

Imagine a world where internships aren't just for the privileged few who can afford to work for peanuts while living in expensive cities. Where that talented kid from Detroit (or anywhere else) doesn't need a miracle to land their dream opportunity.

For companies desperately seeking fresh talent and students hungry for real-world experience, that future can't come soon enough.