Software-as-a-Service payments provider iDonate received an infusion of $8.7 million in equity funding to further its growth in 2020.
Financing will allow the Plano, Texas-based company to fully integrate iDonate Payments into its core platform, supporting new technologies like Apple Pay and Google Wallet, as well as international payment processing. The funding also will accelerate “more functionality designed to personalize the donor experience and help nonprofits be more efficient as they grow their causes through digital donations,” according to an announcement by the firm.
Via a press release announcing the financing, CEO Ray Gary said he expects digital donations to make up the majority of all donations. “Nonprofits must invest in the tools to handle this wave of new donations by connecting to their donors in ways that meet their expectations of a modern online experience,” he said via the statement. “Today’s donors are empowered by consumers who expect their online experiences to be simple, secure and even fund — like calling an Uber. We call these types of online experiences for donors ‘great giving experiences.’”
New funding also is expected to bring new capabilities to iDonate, to be unveiled throughout this year, as well as increased staff to grow faster during 2020.
In addition to providing personalized giving experiences, nonprofits will have access to real-time analytics to engage with donors on a more personal level and assess the effectiveness of their campaigns.
iDonate received Series A funding of $10 million in 2018 and $3.5 million in equity funding when it launched in 2014, bringing its total funding so far to $22.2 million. The two most recent rounds of funding were led by PerformanceEdge Partners (PEP), a venture capital firm focused on Software-as-a-Service (SaaS) growth businesses, and included several other existing investors.
“iDonate has the winning combination of a solid foundation and inspiring vision of what today’s donors need to give more to the causes they care about,” PEP’s general partner, Phil Myers, said via a press release. “Their recent growth in acquiring new enterprise customers and large-scale original equipment manufacturer channel partners has been impressive.”
iDonate represents almost 1,000 nonprofits in faith, education and healthcare.