San Diego, California-based company, Classy is the technology company filling a market need for software solutions within the nonprofit sector. Founded in 2009, the company’s world-class online fundraising software modernizes the giving experience to accelerate social impact around the world.
Classy's free plan allows nonprofits to start fundraising in minutes with no subscription fees. Throughout the pandemic, it has tried to give others an extra helping hand, reducing the standard transaction fees down to 3%, allowing up to two concurrent campaigns to run, increasing the number of admins per account to three, and opening up base integrations.
The idea for the company was inspired after co-founder Scot Chisholm and his friends helped raise funds for the American Cancer Society in San Diego. Classy was formally launched just a few years later. It began as a technology venture with a focus on the online space, making it easier for non-profit companies to connect with donors. Since its founding, Classy has raised nearly $3 billion in donations from donors in over 190 countries. In 2020 alone, the company raised a staggering $1 billion.
Now the company has announced it has raised $118 million in a Series D funding round led by Norwest Venture Partners. There was participation from existing backers including Salesforce Ventures and Hinge Capital. David Su, Partner at Norwest Venture Partners, will join Classy’s Board of Directors,
Classy intends to use the fresh capital to enter new segments, such as corporate donors, as part of its broader strategy to match more high-profile donors with non-profit companies.
Following the funding round, Chisholm plans to step down as chief executive, and the company will now be led by newly named CEO Christopher Himes. Chisolm will become executive chairman, where he’ll lead mergers and acquisitions, and expansion into new markets. He remains on Classy’s board of directors.
“Last year was especially challenging for nonprofits, forcing them to adapt their fundraising efforts to meet the needs of their recipients while increasingly leaning on technology solutions,” said Su. “As the social sector looks to reach new audiences on digital platforms, Classy is poised to support this growing market demand.”