Nonprofit accounting software developer Aplos has raised $4 million in a Series A round of funding from San Joaquin Capital, a new venture capital firm that specializes in financing technology companies in California’s Central Valley.
Founded in 2009, Aplos has grown rapidly since launching its cloud-based accounting software in 2011. After its initial 18 months of operation, the company had 10,000 nonprofits using its software, and passed the 20,000 mark last year. Organizations using Aplos include Kiwanis International and Assemblies of God. Aplos has added new services for small nonprofits, including preparing IRS returns in 2012, donation processing in 2014, and simple donor management in 2015. The company aims to triple in size this year.
“When I founded Aplos, it was with the goal of providing technology that was easy to use that would help nonprofit leaders operate more efficiently and more successfully,” said Aplos CEO Tim Goetz in a statement. “Six years later, we still get fired up knowing that nonprofit administrators and financial executives in over 60 countries are using Aplos every day to support the causes that are important to them and their donors.”
Goetz teamed up with two other natives from Fresno, Calif., to form San Joaquin Capital and attract investment dollars from business leaders in California’s Central Valley. Aplos is the sole recipient of the firm’s first fund, the Whitney Fund, valued at $4 million. Drawing on investors based in the region, all $4 million was committed within three months. Aplos previously raised $3.4 million from an angel investor, bringing its total funding to $7.4 million.
The additional funds should enable Aplos to accelerate and expand its product development efforts.
“Aplos has such a clear trajectory that it made perfect sense for our investors. We couldn’t ask for a better example of an emerging tech company that will create jobs and spur economic impact in the Valley,” said San Joaquin Capital managing partner Randel Mathias. “By supporting local and successful companies like Aplos, we can retain the region’s incredible talent and dramatically enhance our economy.”