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MenuWhich CRM should we use to keep track of fundraising relationships?
We are launching a venture fundraising round that is going to be significantly broader (aka way more conversations, people, contacts) than our previous rounds. Is their a good CRM platform we should use to keep track of people and the process? Personal experience most helpful!
Answers
I've worked with a couple of CRMs; if you are looking for a custom-like solution, I'd recommend Podio.
Salesforce has a lot of options, but tends to overwhelm folks who are not familiar with their tool.
If I didn't go with Podio, I'd choose HubSpot because of the integration with their other sales and marketing services. I don't know any other details about your venture, so it is hard to offer a tool that will grow with you.
I'm happy to discuss more and give you a more detailed answer. Just book a call and we can get rockin'
-Shaun
Honestly I like NationBuilder. It gives you many options to customize both customer facing and the back end. It also integrates with many other SaaS products. If you would like, shoot me an email and we can talk in more detail to make sure you guys understand your options. I have worked with nonprofits and other organizations that fund raise in the past.
Lots of fundraising systems claim to offer a mythological, unicorn-like "360-degree view." However, if they are only storing data about fundraising, they’re only showing you part of the picture. Your best prospects and donors may be involved in your mission as beneficiaries, clients, partners, advocates, online participants and more. Don’t you want to know that? Won’t that allow you to better identify prospects, and build stronger and deeper relationships? You bet it will! And guess what – your constituents expect that the left- and right-hands of your organization talk to each other. Your desk is NOT where prospects turn into donors. If so, your CRM should allow you to easily surface your best relationship opportunities and provide clear, automated pathways for cultivating those relationships.
You can read more here: https://www.salesforce.org/blog/top-3-14159-tips-for-choosing-a-crm-to-meet-your-fundraising-needs/
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
For our nonprofit botanical garden and animal sanctuary, I've been using the Techloyce Nonprofit Success Pack. I like it since you can modify it to your needs and it allows you to have up to 10 members for a very reasonable price. I also like that their Trailhead videos make learning the system and figuring out how to customize it for your individual needs a breeze, or you can submit a ticket to have a Salesforce professional assist you with your modification. My only issue is that some of my other products do not integrate with Salesforce because they were picked years before I started working here (like Vanco for online credit card donations). You can check details at https://www.techloyce.com/zoho-consultants/
As a result, I presently have to manually enter data such as donations and membership fees. Techlyce is well worth the investment because so many products now integrate with it. Aside from that, I believe Salesforce is a really powerful product that is well worth the investment.
Related Questions
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When raising money how much of equity do you give up to keep control? Is it more important to control the board or majority of shares?
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VCs: What are some pitch deck pet peeves?
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What exit strategies do angel investors want/prefer for a service business?
Keep in mind that investors invest for returns. Telling a prospective investor that you want his or her money to grow your business but don't plan on ever generating a liquidation event that pays him or her a dividend is not likely going to work; angel or not. You may be better served with debt financing where returns are generated in the form of interest payments not equity value growth. BUT, if equity financing is the plan, you're going to want to develop a strategic exit plan right from the start. That means identifying prospective buyers, strategic channels etc and characterizing the value drivers for each right up front. You'll find prospective buyers come in a number of forms; competitors, bigger versions of you, strategic partners, private equity, etc. Each will value your business in different amounts for for different reasons. Understanding this is vitally important for you to navigate to securing the right money, from the right sources, with the most favorable terms. Once you've qualified and quantified each of them, then determine what (specifically) you're going to need to do to align your business with those prospective buyers generating the highest returns. This will drive your business model and go to market strategy and define your 'use of funds' decisions. This in turn result in a better, more valuable business whether you exit or not. Do it this way and you'll have no trouble raising money from multiple sources. You can learn more about the advantage of starting with a Strategic Exit plan here: http://www.zerolimitsventures.com/cadredc Good luck. SteveStephan LittleSL
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What happens to a convertible note if the company fails?
Convertible notes are by no means "earned." They are often easier to raise for early-stage companies who don't want to or can't raise an equity round. Equity rounds almost always require a simultaneous close of either the whole round or a defined "first close" representing a significant share of the raised amount. Where there are many participants in the round comprised mostly of small seed funds and/or angel investors, shepherding everyone to a closing date can be very difficult. If a company raises money on a note and the company fails, the investors are creditors, getting money back prior to any shareholder and any creditor that doesn't have security or statutory preference. In almost every case, convertible note holders in these situations would be lucky to get pennies back on the dollar. It would be highly unusual of / unheard of for a convertible note to come with personal guarantees. Happy to talk to you about the particulars of your situation and explain more to you based on what you're wanting to know.Tom WilliamsTW
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