How we got here
Foundant originally started because there was a lack of options for grantmakers to have reasonably and predictably priced, intuitive, and well supported software. We created a new model where clients were more than just revenue, and they could count on us to do the right thing and exceed expectations whenever possible. Over the years we have grown by continuously earning the trust of our clients and partners in the philanthropic community.
Blazing a trail…again
After 12 years of managing Foundant as both the operational leadership and the financial backing of the company, the original founders – Daren, Chris, Mark, Kase, and Steve – are ready to begin a thoughtful transition. Once again we find ourselves in a position where the standard options are lacking. Following the known path of accepting outside venture capital or selling to a new company would likely lead to results many of you are already familiar with based on past experiences. We see this as an opportunity to do things differently!
Foundant and its future are about more than just benefiting shareholders. Decisions about our business impact 2000+ clients, 100+ employees, the communities where our employees work, and the people who benefit from the good work our clients do. As we consider our needs and interests in the future, we seek a thoughtful transition that balances the needs of all these stakeholders both today and for the long-term. We are taking this slow in order to hear more feedback and monitor changes to ensure Foundant continues to be the company we are proud of.
What is happening, at a high level
We are excited to announce that we have chosen to bring in additional ownership through an investment group we hand-picked with both extensive business experience as well as passion for philanthropy.
The new investment group will have a minority stake in the ownership of Foundant. The original ownership maintains their majority position, will control the majority of Board seats, and will continue to serve as the operational leadership of Foundant. For our clients, employees, and communities, there will be no perceptible change in Foundant’s operations. However, as part of this transition, Foundant will have access to new funds to help our organization continue to grow in a sustainable way.
Investors with value alignment
Over the past year we have been looking to find new co-owners who are passionate about our work in philanthropy and the communities we serve.
We began where we felt would be the most logical place to find investors who would understand what makes Foundant special – specifically, our customer base and our local community of Bozeman, MT.
We were excited to find there was interest among some of our community foundation and private / family foundation clients who looked at an investment in Foundant as an interesting example of impact investing. They know us well, and we are elated to have them aboard as part of our ownership team. Check out our FAQ page to find out more:
Our local Montana investors were a welcome addition. All come with experience in private equity or venture capital but are investing in Foundant as individuals or through their family foundations and DAFs. All are active in philanthropy and chose to be co-owners based on their appreciation for the role Foundant plays in the sector. It is exciting to know that, as Foundant continues to prosper, our success will help fund people who are active in philanthropy rather than large bonuses at some venture capital fund or private equity firm.
This process was certainly not the easiest way to create some liquidity for the original investors while fueling our organization with new capital. However, we feel it is the right one. It is important to ensure a path that recognizes the relationships we have with our clients, employees, and our community. We have worked hard to create and maintain these relationships and protecting them is a top priority.
We are confident this less-traveled path is right for Foundant. It is exciting to bring in new energy, ideas, and capital at this stage of Foundant’s life. We are thrilled about where we are going and the impact we will continue to have on our clients, employees, and our community.
About the Author
Foundant Technologies has specialized in making philanthropy easier and more impactful through innovative software solutions and exceptional client experiences since 2007. Passionate about philanthropy, our team is dedicated to meeting the unique needs of grantmakers, scholarship providers, community foundations, and nonprofits to enable change-makers to make the world a better place for all.