Fundmetric, the Halifax startup that helps charities raise more money, is plotting a bold move into the U.S. after a successful meeting with clients in New York.
CEO Mark Hobbs was in New York last week for an event organized by the Canadian Digital Media Network, where he met with about 20 charities based in the area.
Fundmetric also became the first startup to take advantage of the office space available at Communitech NYC, the new facility operated by the Kitchener-based support organization Communitech.
“We were able to meet some of the leading charities in the New York,” Hobbs said in an interview Tuesday.
Many are household names, though he would not name them.
“To put it mildly, we got an outstanding reception from those customers and many of them are in the process of getting on our software now.”
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Hobbs said the company was invited back for second meetings with two of the charities, and in one case to meet the charity’s CEO.
And Fundmetric now plans to open a sales office in New York due to response to its sales pitches.
Founded by Hobbs and Chris Kolmatycki, Fundmetric provides charities with software that helps to increase the results of their funding campaigns.
First, it scans a broad swath of data to learn about the charity’s donors. Then it uses algorithms to determine who is most likely to give and what their concerns are. Finally, it helps the charity contact the donors, so they understand the impact their gifts have had.
Fundmetric now has about 20 paying customers in Canada, including the fundraising teams at Saint Mary’s University and Dalhousie University.
Hobbs said that the last fundraising campaign to use Fundmetric experienced a 25-per-cent growth in donations and more than doubled the number of donors.
The charities Hobbs met in New York were far larger than those in Canada, he said, and they were impressed with Fundmetric’s unique ability to use data to enhance engagement with donors.
“It was neat going into a new market and learn that the pain is the same (as in Canada),” said Hobbs.
“The intensity at which that market innovates is well known and we were really pleased to be there from Nova Scotia and be there as a company that is bringing innovation to the charitable marketplace.”
One of the impressive things about Fundmetric is how much Hobbs and Kolmatycki have done with relatively modest amounts of capital.
The company has raised only $250,000, including $150,000 from BDC Capital. Yet it has moved to the market by working with some key startup organizations, including Volta Labs in Halifax, the Propel ICT accelerator and the Google for Entrepreneurs program offered at Communitech.
The company, which employs six people, is now raising more money, with a target for this funding round of $750,000.
Hobbs said he met with a few potential investors in the U.S. recently and hopes the funding will help with the move south.
“We’re going to be looking to establish a U.S. sales office in New York. That’s what we’re going to do with our round.”