Internet pioneer amasses millions

While most of his classmates wrote LIT 141 papers, Jared Schutz '96 wrote business plans. And while classmates were busy learning how to find their classes, he was finding investors for his Chicago-based Internet service provider, which he co-founded and later sold for $23 million.

Several companies and hundreds of million dollars later, Schutz — the former 'Bluemountain.com wiz' — is still busy, serving as chairman of three other Internet-based companies across the country.

He will speak on the subject of the Internet economy in a speech today at the University.

In an interview yesterday, Schutz dismissed his technological success as luck, saying that as investors' interest in the Internet grew, he was "fortunate to be in the right place at the right time."

Schutz, who said he never took a computer science course while at the University, explained that he thinks of himself as "more of a business guy than an Internet guy."

He recalled that he has always been interested in two things — computers and politics. As a politics major at the University, Schutz brought his varied passions together in a thesis about the Internet's impact on politics.

Though he lost his bid for the USG presidency during his junior year, Schutz left a permanent legacy by organizing the first Web-based election at the University — which was also the first of its kind nationwide.

At the time, the Registrar's office counted all votes, and as Schutz said, "was wedded to the idea of paper ballots." He said the USG had to "apply a lot of pressure" to convince the administration to allow the new method.

He added that the first Web-based elections had record turnout, with nearly a 30-percent increase in votes. "When you make it easier for people to vote, they vote in higher numbers," he said.

Schutz's said he supports nationwide online elections, which several legislators have proposed in order to reverse declining voter turnout. "It makes the concept of a more direct democracy much more feasible," he said.

'Proper safeguard'

Citing widespread concerns that Internet balloting is vulnerable to fraud, Schutz said it could be as secure as any other form of voting. He added that "it's a total matter of erecting the proper safeguard."

Schutz' biggest money maker was Bluemountain.com, an online greeting-card Website, which was sold last year for $900 million to ExciteAtHome. Though he did not start the company — his parents founded the paper-based part — he did bring it onto the Internet. With Schutz's tenacity and vision, Bluemountain.com has become the largest Web-based company of its kind and the eighth-most popular Website on the Internet.

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His current project is Proflowers.com, the third largest online flower store on the Web. Though his company lags behind FTD.com and 1-800-FLOWERS.com, Schutz predicts Proflowers.com will take control of the industry. "We have a ton of momentum to become the leader in this sector," he said.

Schutz still maintains his ties to his classmates from the University. He recently started two companies, including Dans.com — an online chocolatier which he co-founded with Dan Cunningham '97.

He credits the University's relaxed curriculum with his ability to run his companies while at school. "The flexible curriculum was important to me. It enabled me to have flexibility in scheduling."