Cloud-based donor management tool provider Bloomerang has received an investment from JMI Equity (JMI), a growth equity firm focused on investing in software companies. The amount of the investment was not disclosed although it is an equity stake in Bloomerang.
“We started Bloomerang with a vision to improve nonprofit effectiveness through smart, intuitive technology and world-class customer service and support,” said Ross Hendrickson, CEO of Indianapolis, Ind.-based Bloomerang. “This partnership with JMI allows us to retain our autonomy as a company, while giving us access to resources that will help us continue to grow and further our mission of helping nonprofits do good.”
This investment comes on the heels of Bloomerang being named a Best Place to Work in Indiana for the fifth consecutive year, as well as nearly doubling its campus earlier this year through the purchase and renovation of a historic building adjacent to its current headquarters.
Hendrickson said the cash infusion will be used to add staff, expand marketing and grow the suite tools. One of the hires will be a chief financial officer with Hendrickson relinquishing that hat. There will also be a buildout of the marketing and development team, he said.
The firm’s core customer, he said, is an organization with between one and 10 development staff members and revenue of $10 million or less.
“Bloomerang is an emerging leader in the donor management space. The company’s powerful yet easy-to-use tools are highly effective in helping customers more efficiently achieve their mission by improving donor retention, increasing donor engagement and increasing donor lifetime value,” said Larry Contrella, principal at JMI Equity. “We’re excited to partner with Bloomerang to expand the ways in which it serves the nonprofit community.”
Contrella, David Greenberg and Vinny Prajka of JMI will join Bloomerang founder Jay Love and Hendrickson on Bloomerang’s board of directors.
Hendrickson called the cash a “growth investment” for the 8-year-old firm, a “partnership” more than an investment. JMI lists involvement with software providers Classy, Benevity and higher logic among others in the nonprofit space.