Virtuous Lands $100M from Susquehanna Growth Equity to Enhance Nonprofit Fundraising Solutions

The story of Virtuous, a CRM and marketing platform designed specifically for nonprofits, highlights a growing need for organizations to improve their relationships with donors. Founder and CEO Gabe Cooper recognized that many charitable organizations lacked personalized, data-driven outreach methods, often sending generic follow-up messages that felt disconnected from the donors’ original motivations. This realization led to the creation of Virtuous in 2014, which has since grown significantly, with more than 10,000 customers, including large nonprofits like Ronald McDonald House and Habitat for Humanity.

Virtuous differentiates itself by providing a “responsive fundraising” model, which leverages data to better understand donor behavior, such as email opens, website visits, and engagement patterns. This personalized approach enables nonprofits to tailor their outreach efforts, increasing the likelihood of larger donations and fostering stronger connections between donors and the causes they care about. Cooper describes Virtuous’ marketing and customer segmentation approach as similar to platforms like Klaviyo, but specifically designed for philanthropic organizations.

The company's growth has been impressive, with its revenue quintupling over the past three years. This rapid expansion attracted the attention of several investors, and in a strategic move, Virtuous raised $100 million from Susquehanna Growth Equity, marking a significant infusion of capital that will be used to enhance its customer relationship team and develop new AI-driven functionalities. These AI tools, currently being tested internally, aim to streamline tasks such as natural language querying, allowing users to bypass the need for complex searches and reports. The AI development was done in collaboration with Microsoft using OpenAI technology.

This new capital comes at a critical time, as the nonprofit sector increasingly looks toward digital transformation to improve efficiency and effectiveness in donor engagement. The integration of AI could revolutionize how nonprofits communicate with their supporters, potentially leading to even greater growth for Virtuous. Cooper’s decision to raise funds now, despite initially having no plans for new investment, reflects the company's anticipation of further market shifts and opportunities in the AI space.

With a strong focus on personalized outreach and advanced technology, Virtuous continues to distinguish itself in the nonprofit CRM market, where it competes against major players like Blackbaud and Salesforce. Founder Gabe Cooper believes that Virtuous' unique emphasis on data-driven, responsive fundraising offers a competitive advantage. By understanding donor behaviors and preferences through detailed tracking, the platform enables nonprofits to tailor their outreach in ways that resonate more deeply with individual contributors, ultimately leading to larger and more meaningful donations.

This approach contrasts with the more impersonal methods often employed by other CRM platforms, which may not delve as deeply into the behavioral data that Virtuous leverages to refine donor engagement. Through its AI-driven tools and “responsive fundraising” model, Virtuous is able to create highly customized interactions that enhance the donor experience and build stronger, long-lasting relationships.

Looking ahead, the company is preparing to introduce new AI functionalities by early 2025. These features, which are currently being developed and tested internally, will streamline tasks such as data querying and reporting, making it easier for nonprofits to harness their donor data. This AI innovation, supported by a recent $100 million investment from Susquehanna Growth Equity, reflects Virtuous’ commitment to staying at the forefront of technology-driven solutions for the nonprofit sector.

As the company continues to expand its offerings and refine its platform, Virtuous is well-positioned to capitalize on the growing need for more effective, personalized donor engagement solutions in the nonprofit space. Its focus on responsive fundraising and AI innovation ensures that it will remain a key player in helping nonprofits increase their impact and financial support.