Fundraise Up, a Brooklyn-based fundraising platform for nonprofits, has secured a $70 million minority growth investment to fuel its expansion and solidify its position as a market leader. The startup's innovative approach to nonprofit fundraising, which incorporates artificial intelligence (AI) to enhance the donor experience, has resonated with over 3,000 organizations, including prominent names like the Canadian Red Cross, the American Heart Association, and The Salvation Army UK.

The fundraising landscape for nonprofits is often plagued by outdated, expensive, and limited technology, leading to a poor donor experience and hindering organizations' ability to fund their mission or cause. Peter Byrnes, co-founder of Fundraise Up, emphasized the disconnect between nonprofits' messaging and the actual donation experience. "The nonprofit's messaging is about affecting change, making a difference, and being a hero," Byrnes said. "But when a would-be donor arrives to the donation form, the experience is a complete 180. They don't feel empowered — they feel frustrated."

Fundraise Up's platform addresses this issue by offering a seamless and personalized donation experience. Nonprofits can add a "Donate Now" button to their website or create a dedicated campaign page, with features to manage fundraising drives, track donation stats, and accept various payment forms. The platform's AI capabilities enable it to tailor donation suggestions to individual donors, recommend recurring donations, and offer options when a donor is about to cancel.

Byrnes highlighted the competitive advantage of Fundraise Up's AI-powered approach, stating that their models and dataset give them an edge over competitors who incorporate AI at a later stage. The startup's pricing model is also attractive, with nonprofits paying a 4% fee per transaction (plus payment processor fees) and receiving technical support for free. This approach eliminates the burden of upfront costs and lock-in contracts, which can be detrimental to nonprofits during challenging years.

The $70 million investment, led by Summit Partners with participation from existing investor Telescope Partners, brings Fundraise Up's total raised to over $80 million. The new funding will be utilized for product development and expanding the platform to new markets and verticals. Byrnes expressed optimism about the giving market, citing its rapid growth and resilience, and emphasized Fundraise Up's commitment to amplifying that momentum and delivering innovation and positive impact to nonprofit missions.

The success of Fundraise Up's platform and its recent funding raise underscore the potential for technology to transform the nonprofit sector. As the startup continues to grow and innovate, it is likely to have a profound impact on the way nonprofits approach fundraising and engage with their donors.