TechSoup Gets $1M For Its Direct Public Offering
February 6, 2019 Paul Clolery
Microsoft Philanthropies has made a $1 million impact investment in TechSoup’s direct public offering (DPO), part of a drive to generate $11.5 million to nearly double the number of organizations served by the nonprofit network that facilitates distribution of technology solutions.
A DPO is a funding source that enables individuals and corporations to invest directly into the growth and mission of an organization. TechSoup’s DPO will be leveraged to distribute more than $5.4 billion of additional resources to the nonprofit sector.
“For our overall Growth Capital Campaign of which the DPO is a part, we have raised in the first 10 weeks $5,079,400 from 47 institutional and individual donors of differing profiles,” said Rebecca Masisak, chief executive officer (CEO) of TechSoup. “For those going through the direct public offering, we have had investment in each of the three tiers offered.”
As the DPO’s first corporate investor, the cash will enable TechSoup to develop new offerings to help nonprofits use technology to amplify their mission and impact, and it will encourage investors of all stripes to support TechSoup’s growth initiative and catalyze the impact to the sector. “We are excited by the results and the size of the individual donation … having engagement and this type of long-term commitment from people working in the nonprofit sector or investing in local communities and seeing this as a high-impact investment has really boosted our feeling of being on course with our strategy,” said Masisak.
“TechSoup has been a critical partner in building a remarkable and robust societal ecosystem that brings the promise of technology to nonprofits serving on the front lines, those trying to solve and address the world’s biggest challenges,” said Justin Spelhaug, general manager, Microsoft Philanthropies Tech for Social Impact. “Microsoft’s investment in and collaborative partnership with TechSoup is building bridges to digital inclusion and empowerment to help the nonprofit sector realize all the benefits of cloud technologies.”
TechSoup has worked with more than one million organizations in 236 countries and territories during the past 30 years, delivering the services and resources for people and nonprofits to come together to make an impact on the issues about which they care the most. Since inception, it has distributed more than $11.1 billion in technology products and grants.
Microsoft and TechSoup are investing in the civil society infrastructure necessary to ensure that non-governmental organizations (NGOs) in all countries have access to Microsoft’s cloud solutions as well as the services, support and education that will enable them to realize the social impact of digital transformation. “Building capacity and digital skills for NGOs is vital to our strategy,” Jane Meseck, senior director, Microsoft Philanthropies Tech for Social Impact, said. “Our investments in mission-based partnerships like TechSoup have enabled a scale of impact and a sustainable model that can now contribute significantly to our cloud adoption goals and ensure NGOs are ready for the future,” she said.
“As one of our earliest, most innovative and longest-standing corporate partners, Microsoft has played a critical role in helping TechSoup bring the promise and potential of technology to people and organizations around the world,” Masisak said. “This significant new investment will dramatically expand TechSoup’s services, financing five new initiatives to help NGOs, philanthropists and civil society around the world leverage technology to create, connect, activate and transform their organizations and communities.”
The Microsoft Philanthropies’ DPO investment was made on SVX.US, a new investing platform offering debt and equity investment opportunities in high-impact companies, organizations and funds that can deliver positive social and environmental impact alongside financial return. With investment minimums as low as $50, the DPO can engage with TechSoup’s community, including the nonprofits they serve and the technology companies with which they partner.
“The nonprofit/NGO sector is under-resourced and under-represented in an increasingly digital world, but with support from Microsoft and our other investors, we will be able to increase the resources we distribute to organizations and nearly double the number of nonprofits we serve,” Masisak said. “By leveraging the emerging trends of online communities, the World Wide Web for information sharing, and e-commerce marketplaces, we can help close the tech gap for more of the world’s frontline NGOs that serve billions of the most vulnerable people and help them more effectively address the world’s most critical problems.