Revealing a new $55 million investment from JMI Equity, CampusLogic CEO Gregg Scoresby told employees this week, “You are now part of a genuine education technology success story—and our customers are too. This investment enables us to further fulfill our mission to transform student financial services (SFS) in higher education.”
Noting that this investment will likely be the among the most money raised by any technology company in Arizona this year, Gregg said that partnering with JMI was “a perfect fit.” He sat down with us to discuss the details of this budding success story—what it all means and what happens next.
You started 2018 with a specific goal in mind: To seek more investor funding. But with a reported four-year compounded annual growth rate of more than 200%, why? By all accounts, CampusLogic is liquid, solid, growing—and already a category leader.
Our mission is to continue to build, lead, and advance the SFS technology category for a long time to come. Yes, we’re a successful organization by every measure and we certainly didn’t need to raise capital. But there’s so much more opportunity ahead—and we want to continue to be proactive.
We’re looking to utilize this new funding to make investments across the company including product development, customer success, and sales and marketing—to increase the scope and power of the CampusLogic student financial services platform. We are also actively looking for strategic acquisitions that grow our product portfolio and our customer base. I am especially interested in acquisition opportunities that allow us to help schools expand access to education, reduce student borrowing and increase completion.
Why is that mission, to lead the SFS technology category, so important?
Higher education changes lives—and that’s an important social good. In everything we do, we’re focused on our purpose, to help schools change lives. It’s essential that we continue to pursue excellence in this category because SFS technology helps make college a reality for many who thought otherwise.
We know that financial constraints and complicated financial aid processes are what often deter bright, capable students from enrolling in school—and persisting all the way to graduation. Low-income and first-generation students probably have it the worst. In fact, 40% of those who are accepted into college fail to enroll, in large part because of the complexity of student financial aid. The CampusLogic SFS platform is solving many of those critical problems for colleges and students through easy, mobile, personalized calculators, forms, awards, and scholarships.
You considered several offers. Why did you choose JMI Equity?
JMI Equity’s investment and guidance with EdTech companies Ellucian, Blackbaud—as well as other category-leading companies—make it the best partner I can think of to help us unlock the tremendous opportunity before us.
In the past 25-plus years, JMI has invested $3B in more than 130 software companies. The success of JMI to collaboratively and strategically help grow enterprise cloud software companies like CampusLogic —and its experience in helping to navigate growth challenges—is unmatched. This partnership gives me huge confidence in CampusLogic’s future.
What changes will this bring to CampusLogic?
In all day-to-day activities and interactions with our nearly 500 customers, nothing will change. We have the same purpose, mission, values, focus, products, and team today that we did yesterday, but everyone here is driven to improve everything we do. This investment from JMI will allow us to make our already awesome customer support even better as well as expand our capabilities through new product development and select acquisitions.
Behind the scenes, the composition of our board of directors is changing. We’ll be saying goodbye to a couple of our original board members. They have been crucial to our early success—and I can’t thank them enough for their unwavering support. We’re also adding some new faces: JMI General Partner Peter Arrowsmith and Krishna Potarazu, JMI Senior Director. I’m very excited to partner with them in this next phase of the company.
This is a huge inflection point in your career, too. As the founder (and original investor), what are you thinking about right now?
This is a big milestone for the company, but it is important to me that our customers, our employees, and our partners recognize that capital raising is only a means to an end. I want to make sure that we never lose sight of our purpose and how our employees and customers really come together to help change lives. It’s also important to me that we maintain the goodness of our organization—and the good work we do—as we continue to grow quickly.
As a repeat founder, I am probably a little obsessive about company- and team-building in general. The right people on the right team solving the right problems can truly change the world. I am so proud to have JMI on my team. They are our long-term capital partner and I am looking forward to working closely with them to advance our purpose and mission.
More growth, of course. We’ll probably have a few celebratory tacos, too.