San Diego’s Classy has raised $30 million in venture capital to expand its software platform that helps non-profits with online fund raising campaigns.

The 200-employee company will use the money to expand its engineering team to add tools and further automate fundraising for social service organizations.

“They have been so under served for so long, with just a handful of players that bring technology solutions to non-profits,” said Scot Chisholm, chief executive and co-founder of Classy. “The market is super thirsty for someone who is looking at the whole space a little bit differently, not only bringing new technology to the table but also sharing a philosophy of where the sector is headed.”

Founded in 2011, Classy began as a white label crowd funding platform for non-profits and higher education institutions. Over the years it has beefed up its technology to offer a software suite that includes crowd sourcing, peer-to-peer fund raising, online donations and event management.


Organizations that use its software platform include the Leukemia & Lymphoma Society, Teach for America, National Geographic, Pencils of Promise, Team Rubicon and the World Food Program USA. The company says it has helped 2,500 social organizations raise money over the years.

“We haven’t expanded outside of the non-profit vertical and don’t plan to any time soon,” said Chisholm. “Our differentiation is a product with deeper, specialized features specifically for non-profits.”

There are competitors, including publicly traded Blackbaud and crowdfunding websites Indiegogo and GoFundMe.

Still, Classy is on pace to increase its customer base by 200 percent this year – in part because it refreshed its software, said Chisholm. It also has a partnership with Salesforce aimed at the non-profit and higher education donor market.


The company sells its software via a monthly subscription. It also charges a small transaction fee. The privately held company declined to disclosure financials.

JMI Equity led the new funding round. Existing investors Bullpen Capital, Galileo Partners, Mithril Capital and Salesforce Ventures also participated.

Previously, Classy had raised $23 million in venture capital. Brian Hersman, general partner of JMI Equity, will join Classy’s board of directors.

“The fundraising market is increasingly moving to online and mobile channels as a way to drive increased revenue and improve the donor experience,” said Hersman in a statement. “Classy is one of the most secure, supporter-centric and fastest growing fundraising platforms in the world and is well positioned to capitalize on this trend.”


Chisholm said the company will use the money to double its product development team, which has about 40 workers currently. The goal is to provide more tools to help non-profits better understand, communicate and retain their donors.

“How do we minimize donor churn, which is a huge problem within the industry,” said Chisholm. “The average is 60 to 70 percent of donors don’t come back the next year. That makes it tremendously difficult for a social impact organization. They are tackling some of the world’s biggest problems, and our goal is to give them the best technology to accelerate the pace of their impact.”

mike.freeman@sduniontribune.com;


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