Last week, The Wall Street Journal dropped a blockbuster story on Crimson Education titled “The Guru Who Says He Can Get Your 11-Year-Old Into Harvard.” The venture capital backed company is valued at $554 million.
Parents pay Crimson Education $30,000 to $200,000 for programs that help their kids get into top schools, especially the Ivy League. Feels kind of gross, but maybe it’s reality. I was shocked to learn that 23% of Harvard freshmen reported working with a private admissions counselor. It’s a booming $2.9 billion industry.
After reading the article, I feel like my friend Michael Trivette might be sitting on a goldmine with his 13 year old company College Transitions. “Our philosophy and approach differ substantially,” Michael told me. While admissions matters, College Transitions focuses more on fit. “We don’t believe that anyone needs to spend anywhere close to $200K — or $20K for that matter — to secure competent college counseling.”
Michael started the company with his friends Andrew Belasco, Dave Bergman while getting his Ph. D. in higher education at University of Georgia. College Transitions is entirely bootstrapped.
- Revenue has grown to low seven figures and profit margins are in the 50-60% range.
- They’ll serve over 400 students across the United States during the 2024-25 academic year. Their most popular local high schools include Ardrey Kell, Marvin Ridge, and Myers Park.
How it works: “We have counseling plans ranging from $2,000-$10,000,” explained Michael. “A typical engagement spans 1-2 years with an average cost of $4,000-$8,000. We offer mentorship counseling plans for 9th-11th graders, designed to help students prepare for the college application process while focusing on the most important factors in selective college admissions. For seniors and transfers, we offer both hourly and comprehensive counseling programs, assisting with college list development, college essay coaching, reviewing applications, and more.”
- Additionally, College Transitions’ website is a leading source of higher education data with over 10 million unique users per year. Web advertising is the fastest growing part of their business.
If you’re one of my local private equity buddies like Jack Purcell or one of my local VC buddies like Don Rainey or one of my local internet mogul buddies like Zach Clayton — you should probably buy College Transitions and grow the hell out of it.
It’s not a wild idea. Sallie Mae purchased Nitro College in 2022 (for a reported $51M). In 2023, U.S. News purchased CollegeAdvisor.com. And this past August, U.S. News purchased TeenLife.
My children are 3, 7, and 9 year old, so I’m hoping Michael hooks me up with free college counseling in a few years — but he may be on a yacht somewhere.
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