Mission Research Closes $2 million Series B Investment from Triple Bottom Line Ventures

Wow! So we have quite a story here. Last year I had a great talk with Mark Finser of RSF Social Finance (Rudolf Steiner Foundation) at the Social Venture Network members meeting in April. He had said we should keep talking because he was moving on to create a new venture firm focused on social entrepreneurs, and he was very impressed with what we do here.

In October I met the rest of his team from TBL Capital, one of whom is Joe Marshall, who served as the lead on our deal. Our values are aligned, the price of the capital was right, and the timing was perfect, because we were ready to grow given the new release, rapidly expanding customers base, etc.

Fast forward to about 4 weeks ago: we closed the deal in about 3 months from seeing the first version of the term sheet! That's actually very fast, and we're thrilled to have them on board. And we've been so busy since then we didn't even have time to make the announcement!

So what's patient capital? And what does this mean for GiftWorks customers?

Patient capital is just that--investment that is patient about the outcome of the investment. It's capital that invests in companies, not just opportunities; in people, not just deals. The triple bottom line stands for the elements of sustainability: people, planet, and profit. Each is important to the company, and to the investors, making us mission-aligned. It means they aren't looking to flip the company with a quick payout, and that the company may in fact never sell to another company. That doesn't mean investors won't get a great return, it just means that the primary driver is not immediate return on capital. And even if the company does sell someday, it will sell with its values, customers, and software intact.   

So for customers this is great news: we get to invest more in support, in broadening our product lines, and in customer education. We'll be able to handle our growth more smoothly. We'll be a stronger company, and invest more in R&D. In fact, that's where I'm spending the bulk of my time now, while Mary Pat Donnellon runs the Nonprofit Division.

So when you're making decisions about what company you want to buy software from, keep in mind that we're not just verbally committed to social responsibility, great products, and great people, we're actually structurally committed. And we hope that shows in the care we put into the product features, design, customer support, education, and all of our interactions with you.

We're thrilled to have you as customers. And we're thrilled to have TBL Capital join our efforts to improve the world through affordable, well-designed technology, Because our mission is to support your mission.

Comments

[Social Investor]

If this is such a good deal, why didn't Benjamin Franklin Technology buy more stock??

http://keynotes.benfranklin.org/1206/CNP_mission_research_1206.html

And if you're burn rate is $125k/month, how can you expect to make any profit if you are selling it at $300? Surely it costs more than that to support the infrastructure you have- or is SalesWorks the actual end-game (which is great, btw)

Definitely intrigued by the model, but as you say, Kintera has been down this path-spending $2.5 for every $1 it sells.

[Charlie Crystle]

Wow--you sound like a venture capitalist (from Delaware?). I don't know any social investors from that area.

Ben Franklin did in fact invest more, for one (that link is 2 years old?). Next, you're way off on our burn rate, and we're doing quite well with our current pricing. And last time I checked, we don't spend more than we make. Sometimes we invest ahead of revenues, sure--that's a necessary part of innovating on behalf of customers and builds overall value.

Kintera is a different business-they serve much larger nonprofits with a broad range of online applications, and the price is quite high. They've been mismanaged and mismarketed, but I suspect their model is an issue as well.

GiftWorks 2008 is a really great release, and GiftWorks Premium is on the way. We're investing significantly in the nonprofit sector, and the "end game" is to serve customers well. Through that, we'll continue to do quite well.