About halfway through recording the band's debut album Sender/Receiver, Donaldson's girlfriend[3] and former cub guitarist Robynn Iwata joined the group under the name "Cup" after moving to San Francisco from Vancouver, British Columbia, Canada.
The group would record one more EP with this lineup, Teletwin released on Gold Standard Laboratories in 2000 before Brian Jackson would leave the band to start his solo project Memory Systems.
Having trouble finding another label to put the project out, the band turned to fan-funding and the album was released on September 11, 2006 on buyhiddenpersuaders.com as three free-of-charge WAV files that fans were encouraged to burn to CD.
In April 2008, Donaldson went on a trip to Egypt with author Robert Bauval as research for I Am Spoonbender's third studio album tentatively titled Synundra Appundrum.
In addition to their own shows, I Am Spoonbender has performed on bills with Mogwai, Glenn Branca, Cibo Matto, The New Pornographers, Wire, Money Mark, Einstürzende Neubauten, Hot Hot Heat, Steven Stapleton, Mike Patton, Secret Chiefs 3, Man or Astro-man?, The Locust, Siouxsie and the Banshees, Kid606, The Faint, Grandaddy, Trans Am, Pleasure Forever, Chrome, Ariel Pink, Notwist, Oneida, Tarentel, Fly Pan Am, Matmos, and Explosions in the Sky, among others.