A private equity company is making a splash with an investment in a leading data and analytics company that helps companies in the not-for-profit sector.
What Happened: Data and analytics company VeraData announced an investment from private equity company Beringer Capital on Monday.
VeraData was founded by Michael Peterman in 2007 and is a leader in decision science and fundraising efforts for companies through its proprietary data and analytics algorithms.
The data and analytics company helps its clients execute campaigns and anticipate the behavior of potential donors by using its modeling technology.
“We founded VeraData because we knew we could help mission-oriented organizations raise money more effectively by bringing them the power of data and analytics – something we felt the industry had failed to sufficiently utilize,” VeraData CEO Peterman said.
The Growing Opportunity: VeraData helps all types of non-profit companies with their fundraising efforts, something Peterman shared with Benzinga in an interview.
“We reduce their cost to acquire new donors, we increase the universe of donors they are able to pursue profitably, we resurrect more of their lapsed donors and reduce the cost to reactivate those donors, we increase the net income of their house files/donor files, we help create monthly donor programs [and] we identify and help cultivate mid-level and major donors to accelerate the financial relationship between the charity and its donors,” Peterman told Benzinga.
VeraData is the only company Peterman knows that offers performance based “risk-free business model to non-profits,” he said.
“We use analytics to improve key metrics. We do this by identifying/stratifying audiences, augmenting creative/copywriting, consulting to broaden the engagement up the donor pyramid and helping them optimize the various decisions around channels, cadence, offer/ask and best practices about all things data. Data is a charity's most valuable asset and too often it is underutilized.”
Peterman told Benzinga that charities may be underutilizing data and analytics that could help their fundraising efforts.
“Charities (and most companies in general) are overwhelmed with so much data … it’s a complex sciences and most of the time data can be misleading. It can tell you what you want to see while obfuscating what you actually need.”
Peterman said the market opportunity for data and analytics for non-profit companies is “exploding.”
“We are bringing a world class solution to the audience who needs it most. There is tremendous opportunity to grow across the sector whose jobs are to basically make the world a better place. We get to help the people who help people and we’ve just scratched the surface.”
Related Link: Beringer Capital Acquires Majority Stake In Benzinga: What You Need To Know
Beringer Capital Investment: Private equity company Beringer Capital has made recent investments in Benzinga and Dig Insights.
The company continues to grow its portfolio with targeted investments.
“We’re excited to partner with VeraData, a company that has disrupted the NFP market with its state-of-the-art analytical capabilities, industry expertise, and extremely capable team,” Beringer Capital Managing Partner Gil Ozir said.
Ozir said the investment will see Beringer partner with a company that helps achieve “worthwhile causes” for not-for-profits.
Peterman credits the investment with helping VeraData continue to grow and scale its business.
“Beringer’s investments have given them a strong market position in the space. They have a cadre of very successful founders and leaders whose experience, networks and knowledge will broaden the reach, enhance the capabilities and supercharge the go to market position of our company,” Peterman told Benzinga.
Peterman said Beringer can help VeraData provide a “more comprehensive, end-to-end solution for our not-for-profit clients” and help save them money and time to reach their goals and missions faster.
Read Next: Exclusive: Beringer Capital Acquires Majority Stake In Dig Insights, Readies Next Stage Of Expansion
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