Givefront, a trailblazing fintech startup, aims to change the way that we think about and leverage financial tools for nonprofit and philanthropic organizations. Matt Tengtrakool, a 21-year-old Harvard dropout, and Aidan Sunbury, then a recent UC Berkeley graduate, cofounded the company. Their recent success in receiving a whopping $2 million in funding. Script Capital subtitles for this round. Y Combinator, C3 Ventures, Phoenix Fund and multiple Angels invested heavily.
The startup aims to change how nonprofits manage their finances by developing a unified financial platform tailored exclusively for registered nonprofit organizations. With close to 1.9 million registered nonprofits in the U.S, Givefront sees a massive, untapped opportunity. We’re working to break down the confusing, unnecessary and out-of-date financial barriers these entities encounter.
Since launching its spending cards just under six months ago, Givefront has onboarded thousands of nonprofit organizations to the platform. The early-stage startup has made waves recently with some substantial growth metrics, claiming to have grown at more than 200% MoM in revenue and total payment volume. Tengtrakool and Sunbury have some lofty goals planned for the rest of the year. They plan to reach 1,000 nonprofits by December. They hope to increase their service to 5,000 nonprofit organizations by the middle of next year.
Tengtrakool expressed his enthusiasm for the project, stating, “I’ve always been interested in financial systems, and this work fits naturally with that.” He is deeply committed to improving public financial management. This commitment is reflected in the platform’s design, which purposefully enhances workflows unique to the nonprofit sector.
Givefront’s platform addresses various financial needs within the nonprofit sector, including managing restricted and unrestricted grants, reporting spending to donors and foundations, tracking volunteer expenses, and filing IRS Form 990 disclosures. Almost all of these workflows are designed to integrate almost seamlessly with the specific functional needs for the day-to-day operations that nonprofits have. “Many of the workflows we’re building are deeply specific to how this part of the economy works,” Tengtrakool noted.
The platform delivers ten times the value of typical corporate or other spend management solutions. Tengtrakool explained the strategic advantage of their approach: “It’s much easier to get an organization to switch the card they use than to replace their entire accounting stack.” By providing a low-friction, low-cost entry point into improved financial management, Givefront aims to promote adoption at scale within the nonprofit community.
As they enter Y Combinator’s Winter 2024 cohort, Givefront is positioned to refine its vision and enhance its offerings further. The founders are convinced that with their platform they can achieve a very high impact on the sector. Nonprofits by themselves account for about 6% of the U.S. GDP and create trillions of dollars annually.
The startup’s talented team features a very gifted 17-year-old founding engineer, who adds an uncommon point of view to the project. This youthful talent is a testament to Givefront’s dedication to innovation and adaptability in an ever-changing financial landscape.
