By Riley Kaminer
Nonprofits are often laser-focused on their mission – whether it’s feeding the hungry, funding scholarships, or preserving cultural landmarks. But behind the scenes, the financial side of running these organizations can be a mess. That’s where Miami-based fintech startup Crowded comes in.
After spotting a major gap in nonprofit financial management, Crowded co-founder and CEO Daniel Grunstein decided to do something about it. “There was a lot on how to get money and not a lot on how to manage the money you’ve raised,” he told Business Insider.
That insight turned into a fast-growing business. Crowded, which helps nonprofits track spending, deposit funds, and generate tax forms, today announced that it has raised a $7.5 million Series A round. The investment was led by London-based Flashpoint, with additional backing from the Florida Opportunity Fund, Wilson’s Bird Capital, Sarona Ventures, and The Garage.
This latest round brings the company’s total funding to $13.5 million.
The startup, which has 35 institutional clients – including Pi Kappa Alpha Fraternity and Harvard Athletics – is carving out a niche in a space that has historically been overlooked by fintech innovation.
“We really want to double down on what’s worked for us, which is that in-person, field sales approach,” Grunstein said, explaining that the fresh capital will be used to expand the startup’s sales and marketing efforts.
Grunstein’s background at JP Morgan gave him firsthand exposure to the financial hurdles nonprofits face. He worked as an Analyst in Fintech & Enterprise Software from 2018 to 2021, researching emerging tech trends like blockchain and spatial computing, scouting fintech solutions, and supporting product management for a blockchain initiative. His experience analyzing financial systems gave him unique insight into how nonprofits could benefit from better financial tools.
His co-founder, Darryl Gecelter, brought another crucial advantage: deep connections in the higher education space. Before launching Crowded, he worked at Graduway, an alumni networking startup that later merged with Gravyty, a fundraising platform. Thanks to Gecelter’s experience, Crowded was able to attract collegiate clubs and fraternities as early adopters.
Crowded is stepping in to offer a digital-first solution at a time when many organizations need it most. And they aren’t alone – other startups, like Givefront from Y Combinator’s Winter 2024 cohort, are also trying to modernize nonprofit financial management. But with a growing client base and fresh capital to scale, Crowded is aiming to position itself as a leader in a sector long overdue for a fintech revolution.
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I am a Miami-based technology researcher and writer with a passion for sharing stories about the South Florida tech ecosystem. I particularly enjoy learning about GovTech startups, cutting-edge applications of artificial intelligence, and innovators that leverage technology to transform society for the better. Always open for pitches via Twitter @rileywk or www.RileyKaminer.com.
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