Indianapolis-based BidPal, a startup focused on mobile bidding and fundraising software for nonprofits, announced this week that is has raised new capital: $3.5 million in new cash from returning investors MK Capital and Allos Ventures, and $2.5 million available to borrow at any time from Square 1 Bank in California.
“All of it represents working capital we can use to grow our business,” says Steve Johns, CEO of BidPal. “We’re growing beyond the ballroom fundraising gala.”
Johns is referring to the auctions held by nonprofits to raise money, where BidPal’s app can facilitate the bidding process. He says the company will use its new capital to increase product development capacity, expand its suite of products, and hire software developers and sales staff. BidPal’s current offerings include management of online fundraising campaigns and events, mobile bidding, and an integrated payment processing platform.
BidPal has also identified parts of the country where it’s poised to grow the most—Atlanta and the Bay Area top the list—and key industries where it would like to add customers, including the charitable foundations connected to professional sports teams.
“I feel really good about our position in the future,” Johns says. “We have 1,600 active subscribers and we’re excited to create new products, especially in the peer-to-peer space. It’s a tremendous opportunity to expand our base.”
Johns says he’s bullish on the “giving industry” in general, pointing out that it generates approximately $373 billion annually in the United States alone. Thanks to high-profile donors like Bill Gates and Warren Buffet along with the vaunted millennial trait of wanting to “do good” in the world, he says charitable activities have never been hotter.
“Long-term, the giving trend supports where we want to go as a business,” he adds.
