In January, we invested in DonorPath, a data insight engine that helps fundraisers simplify, focus, and perform. At the time of our investment, the company was only 15 days past its incorporation; thus, we had to rely heavily on the founder’s vision and experience in the nonprofit sector. Prior to founding DonorPath, Brian Lauterbach had spent fifteen years in the nonprofit sector as a fundraiser, consultant, and entrepreneur. Brian brings passion, vision, and the industry expertise that makes him the ideal founder.
At the time of our initial investment, we invested in a company without a product, revenue, customers, or a team; however, Brian not only conveyed that he is solving a pain point for his customer, but he put us in contact with several nonprofits that affirmed his conviction.
Why DonorPath – Two of the most important facets of an investment are the people and the problem, with people being the first. In this case, we had a founder that had dealt with the problem firsthand. While he was working with nonprofits, he saw consulting firms drawing down five figure commissions with nonprofits that had overhead budgets of only half a million dollars. He also saw development directors making uninformed decisions on data that was spread throughout antiquated CRM systems and Excel databases.
The Solution – Brian saw an opportunity to provide an intelligence system for nonprofits. DonorPath links into an existing system’s CRM to organize historical data on donors as well as create an organization tool for development directors. The platform allows directors to see the next board meeting, whether or not they are on track with their fundraising goals, and insights into historical fundraises. It will be the premier tool for helping fundraisers perform better.
The platform also has some revolutionary features including linkage to an experienced consultant through video conferencing. DonorPath has a bench of qualified nonprofit consultants with an algorithm that will match the correct consultant to the proper nonprofit based on sector focus, personality traits, and the individual nonprofit’s needs. Brian and his team have some other ideas about enhancing the product, but they are not ready to expose those yet.
The platform will allow nonprofits to have insights into the donor base that they have never had before, and at the end of the day, it will allow nonprofits to invest resources intelligently and raise more money from existing and new donors.
We are very enthused to partner with a company that is looking to increase the fundraising capacity for nonprofits. Brian and his team are off to a great start and have generated some impressive traction already. For more information on DonorPath, check out their website at www.donorpath.co.