We are pleased to share with you another investment opportunity, this time a bit different one.
Covid-19 has put a gaping hole in the charity sector’s finances and brought financial challenges for many charities that may continue over the long term. During lockdown, many charities experienced an increase in demand for their services, whilst at the same time having to pivot and adapt the ways in which they work and fundraise.
For all charities, increasing financial resilience and closely monitoring income levels will be vital going forward. In the EU and USA 460B have to be raised solely so that charities like Red Noses can finance their projects, pay salaries and buy equipment. There are two main trends to observe when it comes to giving. The first is the expansion of the “landscape for doing good”
The other major giving trend is the role of digital and how it impacts participation, service delivery and fundraising. To be able to raise those amounts and lack effective alternatives, they turn to analogue fundraising companies which charge high fees for their services.
Felloz team is replacing the expensive middle man with a digital fundraising platform to raise more with less. They help charities to engage their donors through their own white-labeled donation app, to raise more funds and keep their users engaged and informed. The goal is to turn one-time donors into life-long supporters.
Felloz team is looking for 400.000 EUR to start with expansion on markets, having already two running pilots.
We will be allocating slots as follows:
- Business Angels of Slovenia members
- BAS partners
- The minimum investment is EUR 20,000 (as part of syndicate; also, full solo investments are acceptable), threshold is 180.000 EUR
- Maximum investment is EUR 400.000
- We might have to cut back if we are oversubscribed
Accepting allocations until the 22nd of April 2022 (if not oversubscribed earlier)
If you are interested, please email
Business Angels of Slovenia team
About Felloz team members
Raphael Marton – Founder and CEO, responsible for business development and sales. His background is in professional door-2-door fundraising (4 years) and Teamleader for Malteser and ASB (3.5 years). He was Head of finance at the Austrian national union of students (3.5 years). He is also the founder and CEO of Maku Help (non-profit organisation). He has an entrepreneurship certificate (TU Graz) and Bsc in Engineering.
Neven Falica – CTO, responsible for software development. His background is 14 years in app development, web and backend development.
Niklas Zechner – Founder and CPO, responsible for product development. His background lies in branding strategies with numerous online fundraising campaigns.
ROUND DETAILS: Raising EUR 400.000 EUR; 2.000.000 pre-money valuation (20% equity share or investment as convertible loan)
Information rights: Yes
Soft – committed in this round (EUR~ 0) – we will keep this updated
Previous funds raised for this project: EUR 50.000 from FRC
Most of the charities gather funding in an analog way and turn to fundraising companies that charge high fees for their service. Commissions on funded capital are 50% on average. Analog funding for charities is time-consuming as analog fundraising agencies operate face-to-face, via mailings and call centers.
Felloz offers a customizable whitelabel app for fundraising. This will help charities to gather funds in a quicker, cheaper, and more transparent way.
Company is based on their software and they don’t offer any hardware.
They developed an app and platform for charity fundraising. Platform is a so-called whitelabel product in order to be customized and easily suited to each individual charity organization. Because of this, promotion and marketing of charitable events is easier and more satisfying.
They offer both single and recurring donations. Donors are able to stay in touch with the organization and its project, in the app they are able to see personalised updates about the projects and see what impact their chosen charity has made.
App offers an automated loyalty program and simple checkout process.
The market size of NGOs and charitable organizations reached a value of nearly $329.3 billion in 2020. The market has been growing with a compound annual growth rate of 6.9% since 2015.
In the next few years the market is expected to grow at a rate of 6.8%, which means that it could reach the valuation of $457.8 billion in 2025 (source: The Business Research Company).
Looking specifically at the online fundraising market, it grew by 20.7% in 2020 and the fundraising revenue totaled $40.7 billion from 8,833 nonprofit organizations (Source: Blackbaud Institute).
The company has 2 sources of Revenue consisting of SaaS fees and commission per successful donation. Below is the breakdown of different costs
Up to today the company has generated approximately 15,000 EUR of Revenue, with a monthly recurring revenue of 3000 EUR since February 2022.
The company has managed to double their revenue from 2021Q4 to 2022Q1.
The company’s solutions are software related, therefore the possibility of patenting is low. Currently the company doesn’t have any patents.
- 2022 – 1,2 million EUR
- 2023 – 4 million EUR
- 2024 – 10 million EUR
- 2025 – 21 million EUR
- September 2021:
- Attracted VC Pre-Seed-Investment (FRC): 50.000€,
- founded the company in Zagreb
- December 2021:
- First paying pilot customer. SOS Children’s Villages Croatia
- January 2022:
- Second paying pilot customer: Red Noses International
Key milestones in the next periods
- Customer traction:
- +1 B2B customer,
- 100 active/paying users
- Customer Traction: 2
- Product Development:
- Growth-Engine Features
- Customer tractions:
- +9 signed B2B customers,
- +3500 active/paying users
In 2021 the company received a VC Pre-Seed Investment from Fill Rouge Capital in the size of 50,000 EUR. This Investment was in the form of a Convertible Loan.
Current Shareholders Structure
FRC2 Croatia Partners
Felloz aims to become the leading fundraising platform for charities and individuals who would like to support their favourite causes.
Compared to their competitors, the Felloz SaaS white label model offers in-depth adaptation by the customer in their fundraising efforts. In other words, it encourages a sense of ownership, which leads to maximised marketing efforts from charities promoting “their” app.
There are also several other competitors which are crowdfunding platforms, but not specifically for different charities. These are the likes of:
Main barriers identified
- It is hard to market to NGOs, which will be their potential customers
Exit is planned in Q4 2026 after a series B round with potential buyers such as Microsoft (11,9 % market share in NGO Software), Blackbaud or Global Payment.
Please note that we are yet to complete our in-depth DD. This is the information we have received from the start-up and have not cross-checked everything. If we find any untrue information in this memo and you commit, we will inform you.
Investing in an early-stage start-up is a risky investment, therefore we advise you not to invest what you cannot afford to lose.