CRMs / Nonprofit Tech
Exit Potential
Innovation !! Movement along value chain !! Customer adoption !! Stickiness
Fear of CRM competition !! Predictive analytics demand from customers !! Acqui–hire
Providers with NPO Customers
$3B Public Co; 8,000 NPOs
$17.5M to $293.9M Acquisitions
$50B Public Co
20,000 NPOs
CEO is key Gravyty advisor
with 6 profitable exits
$70M revenue
6,000 NPOs
$1.5B Public Co
4,000 NPOs; 5 Acquisitions
$1.1B Public Co
16,000 NPOs; 7 Acquisitions
Acquisition Rationale
Outcome
3-5x
Revenue
Multiple
3-5
Time Horizon
(Years)
Confidential 16
$125k
Closed
Funding & Milestones
Use of Proceeds
$200k
In Talks/Prospect
Raising up to $500k
Angels, Angel Groups, FFF (Accredited), Accelerators, Strategic Partners
$0 –$250k Contracts
PR / Graphics
Data Science
Development
Business &
Customer
Operations
Technology &
Legal
$251–$500k
Next Round
Est. $1M; Q1 2017
35 5
NPOs Case Studies
35
+ NPOs
Direct Sales
Adam
Product Dev
Rich
Direct Sales Engineer
Jonathan
Interns
Confidential 17
Thank You
gravyty.com
hello@gravyty.com
Appendices
Attributions
•Creative Stall
•Lorena Salagre
•PJ Souders
•Oliviu Stoian
•Cristiano Zoucas
•Design Initiative
•Yi Chen
•Okan Benn
•Alex Fuller
•Nayeli Zimmermann
•Mister Pixel
•Darlena Tr a n
•Mattjis de Block
•Mark Shorter
•Eric Bird
•Ralf Schmitzer
•Shimaru
•Alex Auda Samora
•Edward Boatman
•Lemon Liu
•Gregor Cresnar
•Andrew Fortnum
•Mattjis de Block
NounProject.com Artists
20
Ease of
Use
CostsBenefits
Quick onboarding and user
adoption; Useful
immediately
Automated/easy
Implementation; No
migration
Increased efficiency,
donations, and confidence;
Daily results
Consultants
Analytics, Reher, Pursuant
Steep learning curve; UI
cluttered; painful migrations
Consulting fees;
Implementation fees;
Dedicated staff
Stable and scalable
repository for reporting;
Established businesses
CRMs
Blackbaud, Abila
$250
per user/mo
$49–800+
per user/mo
Value To User
Long customization
process; Difficult to change
Expensive fees;
Implementation fees; 3–4
Rotations
Customizable; Thorough
data; Safe choice “IBM”
$30,000–50,000+
per year
Confidential 21
Key Risks
A large player moves into
our space.
Innovation through acquisition; Premium
pricing; Formation of partner programs; First–
mover
How do I know that this
prediction works?
Case study programs; Testimonials; Land–
and-expand trial; Analytics PhD advisor
Long sales cycle and
expensive staff.
Top down sales; Remote sales; Robust
pipeline; Partner referral program; API = scale
potential; Consultants = no fee; Commission-
based staff
Addressed By
Confidential 22
Fundraising Roadblocks
Primitive
Too l s
$2 Trillion
Needed
Limited Data
Skills
Painful
Migrations
240,000
Failures
Conflicting
Priorities
Extreme
Inefficiency
12 Month
Turnover
Poor Donor
Coverage
Confidential 23
Confidential
Timeline
Jun 2015
Algorithm Testing
Phase
1
Aug 2015
Product
Development
Begins
2
Dec 2015
Pilot Tests Start
With Two
Customers
3
Jun 2016
Integrations,
Marketing +
Sales Ramp
4
Sep 2016
Build
Te a m +
Partners
5
24
Concerns At A Typical Nonprofit
Research & Data
“Is this the right set of
donors to target?”
“Are we engaging donors
and hitting our targets in the
right way?”
VPs & Executive Directors
“Are we meeting our goals
efficiently?”
Fundraisers
Value Proposition for VPs
Expand capabilities of existing team and
cover 10%+ without hiring more people.
Expanded capacity
of workforce
Confidential 26
$250 Per seat, per month
2.5% NPO Count –Growth Rate –Net
8% R&D (% of Revenue)
30% SG&A (% of Revenue)
75% Retention Rate
$114k Average Technology Budget at NPO
Organization Seats
3(Small); 5 (Med); 10 (Large)
Select Financial Assumptions
Confidential 27
In 2014, a nonprofit raised $17.3M from
2,400 donors.
The top 136 donors gave $15.5M. The
remainder gave $1.8M. The nonprofit has
15 professional fundraisers and many
volunteers.
Case Study
Confidential 28
Amount‘of‘Donations
Annual+Fund+Donors–$1.8m
Major+Donors–$15.5m
Number’of‘Donors
Annual+Fund+Donors–2264+donors
Major+Donors–136+Donors
Case Study
Logos are for informational purposes only and are not authorized, sponsored by, or associated with the trademark owner.
Confidential 29