In 2013, after more than 22 years of experience building, buying, and selling companies in advertising, marketing, and publishing, Founder JP Maroney started Harbor City Capital as an alternative investment manager specializing in the implementation of time-tested, proven arbitrage strategies to generate reliable yield from the high-growth +$200B Internet advertising sector.
Building on a long history of entrepreneurial successes and learning experiences, Maroney raised his first outside money for Harbor City from “friends and family” in late 2013 and officially commenced operations January 1, 2014. Within just a few weeks he obtained his first proof of concept, having returned more than 60% on his early investments in the strategy he ultimately dubbed “Digital Marketing Arbitrage” (DMA).
The idea behind DMA is simple, yet brilliant in its simplicity. Rather than look at money spent on advertising for lead generation as an “expense”, Maroney views it as an investment that has the potential to deliver a return on investment (ROI) when the lead is either sold to a prearranged buyer, or monetized through internet-based promotions.
The DMA formula is straightforward: Invest “X” in buying digital advertising, get paid “Y” for the lead, and collect “Z” as the profit or ROI. The ROI on a single campaign can range from 5% to 60% or more. And, since Harbor City’s campaigns average approximately three months, internal rates of return, and cash on cash production from this investment strategy can be substantial.
During Harbor City’s first years of operations, Maroney raised friends and family money to invest along side his own capital. Those funds were deployed across several niche markets, giving further proof that his early success with the DMA strategy was more than a fluke and had the potential to grow into something substantial.
Maroney has built the Harbor City team into a roster of A-List top performers in digital advertising, performance marketing, operations, and finance. The company has expanded into additional niche markets, and further increased the capital based, investing heavily in people, processes, and digital assets while positioning the business for rapid scale using its proven business model.
The business is now poised for rapid scale and growth in the +$200 Billion digital advertising space. The next few years are going to be an exciting ride.