LOS ANGELES and NEW YORK, Jan. 30, 2018 /PRNewswire/ -- Nonprofit fundraising software provider, Funraise today announced the closing of its Series A financing, led by Toba Capital. The $9.7 million round marks the second significant investment for the two-year-old startup, bringing the total capital raised to $13 million.
"We see the challenges nonprofits face in today's modern world," said Funraise's CEO and CoFounder Justin Wheeler. Almost $400 billion was given to philanthropic causes last year, and most of this was by individuals. "As donors sharpen their interests, join movements and increasingly give online, organizations need the best technology and the smartest tools to connect with them," he said. "Funraise offers complete solutions for nonprofits, including a CRM, donation forms, payment app, campaign sites, and peer-to-peer functionality, enabling organizations to do everything in one place - and within a delightful platform," Wheeler added.
Since founding Funraise in 2016, former nonprofit and technology leaders Justin Wheeler (CEO), Tony Sasso (CPO), and Jason Swenski (CTO), have grown the Long Beach-based team to 28 full-time employees and signed nearly 400 customers, including the National Wildlife Federation, Action Against Hunger, Dressember and Prostate Cancer Foundation. Funraise has also developed campaigns for Walgreens and Major League Baseball. According to CMO Meagan Kirkpatrick, "Over 30,000 individuals have signed up to fundraise for causes, and more than $45 million in donations has passed through Funraise in eighteen months."
"It's rare for a company to reach this level of traction in such a short time," said Funraise Board Member and Partner at Toba Capital, Wilder Ramsey. "Funraise has grown revenue much faster than most companies we see — not just in the nonprofit space, but across other sectors. They've created the best-in-class platform to power philanthropic giving, and it is resonating with customers," said Ramsey.
Following the investment, Funraise will expand its product and technology teams, and increase sales and marketing to reach more nonprofit organizations. Toba Capital will add a second member to the Company's Board of Directors, former Dell executive Rajan Aggarwal. Also participating in the round is Blaine Vess, Founder of Student Brands, which was acquired by Barnes & Noble last year for $58 million.
Additional details about the deal are undisclosed, while the company confirms that the round was oversubscribed.
About Funraise Funraise is redefining the future of nonprofit fundraising. We use technology, design, and strategy to build the best tools for nonprofits to increase donations and manage donors. Some of the world's largest and most innovative nonprofits—including Red Nose Day (Comic Relief), Liberty in North Korea, and Mercy for Animals—rely on our technology to power their fundraising. Learn more at www.funraise.io
About Toba Capital Toba Capital is an investment firm committed to helping create incredible technology companies. Toba backs businesses capable of long-term growth and teams with the potential to fundamentally shift markets for the common good. The firm takes a high-conviction, hands-on, dollar-concentrated approach to venture investing, and is unafraid to get in the boat to help row. Toba Capital was founded in 2012 by Vinny Smith.