- Virtuous raised $100 million from Susquehanna Growth Equity, marking a significant investment in its nonprofit fundraising CRM platform.
- Virtuous has seen its revenue grow 500% in three years and serves over 10,000 nonprofit organizations.
Virtuous, a fundraising customer relationship management (CRM) platform designed for nonprofits, has secured $100 million in funding from Susquehanna Growth Equity.
The Phoenix-based company, founded by Gabe Cooper in 2014, helps nonprofits increase donations through personalized outreach. It now supports over 10,000 organizations, including Ronald McDonald House, Habitat for Humanity, and Arkansas Children’s Hospital, and has quintupled its revenue in the past three years.
Cooper said he wasn’t planning on raising funds this year, but shifting trends, particularly in artificial intelligence (AI), made it the right time to expand.
“Several shifts in the industry, especially the integration of AI, have convinced me that this is an opportune time to have more capital,” he noted.
Virtuous plans to use the investment to grow its customer relationship team and further develop AI tools for nonprofits. New AI-driven features, expected in early 2025, will enhance donor engagement through data analysis and natural language querying, which Cooper said was developed at a hackathon with the Microsoft and OpenAI teams.
According to Cooper, many nonprofits struggle to effectively market to their donors.
“Donors deserve a personal connection with the causes they care about most,” he said.
Virtuous aims to offer more personalized donor engagement through its “responsive fundraising” model, which tracks donor behavior like email opens and website visits to help nonprofits better understand their supporters.
Virtuous’ main competitor is Blackbaud, but Cooper asserts that Virtuous’ donor segmentation and marketing approach gives it an edge in the nonprofit space.
Edited by Harshajit Sarmah
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