Jamie McDonald
CEO
Sparkroom Corporation
Duke University, Northwestern University and Expedia were stops on Jamie McDonald's route to a business launch and subsequent acquisition by Nelnet.
Why did you launch Sparkroom?
I'd always wanted to start my own business. I saw an opportunity serving online marketers of home mortgages, and we built a platform to serve them. When the mortgage market imploded, I saw a similar opportunity in higher education, as well as the opportunity to be an early mover with a platform designed for use by lead buyers.
Where and when was that?
With four partners we launched the company in Toronto for the mortgage market in 2007. We retooled for higher education in late 2008.
What is the company's success trajectory during your first three years?
Pretty steep in 2007 and 2009. Bumpy in 2008. We've been cash flow positive during 2010, and we now employ 18 people. We serve seven education customers, among them DeVry and the 20 campuses of Remington College. We hope to have 20 education customers on the platform by the end of 2010.
How and when did Nelnet/CUNet come to own Sparkroom?
We were pursuing CUNet as a client. They liked our platform so much they made an offer in October of 2009 to purchase our company. After three months of due diligence and negotiations with CUNet and Nelnet personnel, we closed the deal in February, 2010. Even though the deal crossed a national border (U.S./Canada), there was not a lot of cross-border complexity. My previous experience with Expedia on the acquiring side was a big help. During the Sparkroom negotiation and due diligence, I found the best course was to continue to operate the business as if the deal wouldn't happen.
What's the plan for the next three years?
We want to drive more usage to Sparkroom's enrollment marketing automation platform. We'd like to reach 500,000 leads per month by year-end. In the process, we look forward to reducing some of the friction between buyers and sellers of leads. And perhaps we'll even be somewhat of a cleansing agent, removing some of the fraud and bad actors from the business.
What personal attributes distinguish a potentially successful entrepreneur from a potentially high-paid employee?
An entrepreneur needs to be comfortable amid ambiguity, uncertainty and risk. An entrepreneur also should also have a passion for his or her marketplace and products.
How did seven years at Expedia prepare you for success in the career college marketplace?
At Expedia I worked with a world class group of people, and we were consistentwinners in the marketplace. The career college marketplace is also very much a direct response venue. Like travel, education is a 'considered purchase.'
Did your own college attendance prepare you to start up and successfully run an internet business?
Yes. I was trained as an undergraduate at Duke University in a classical liberal arts environment. It taught me to think critically, to reason and debate thoughtfully, and it sharpened my written and spoken communication abilities.
How might a savvy college enhance its appeal to business achievers?
Entrepreneurship is an underdeveloped undergraduate field. Universities and career colleges that can bring a winning entrepreneurship offering to market will be successful at attracting bright motivated students.
Where would you like to be five years from now?
I get excited about working with great people and building game-changing new products. As long as I get to do that every day, I have a fulfilling work life.