In slightly bittersweet information, startup HandUp is selling itself to the Detroit-based South Oakland Shelter for an undisclosed amount. This isn’t your usual Silicon Valley exit where the founders and investors made a assortment of fund. HandUp CEO Rose Broome described it to me as a “primary philanthropic acquisition.” But it’s still a solid outcome for a startup that operates as a public benefit corporation.
SOS has is an element of HandUp’s nonprofit collaborators for years. When the two organizations first started considering cooperating with each other, SOS at the time transmitted that the united nations had been wanting to build something like HandUp.
“HandUp’s tools have empowered us to better fulfill our own duty: structure communities that resolve homelessness, ” SOS CEO Ryan Hertz said in a statement. “We are proud to inherit and prolong HandUp’s legacy as we spread our work into building digital communities.”
SOS was formally take ownership of HandUp on November 1, 2017. HandUp’s online fundraising tools will stay up and functional, and through SOS, Broome said the service will be able to provide the same level of support that it’s always been able to.
“That’s one of the really exciting appearances for us, ” Broome told me. “That what we’ve constructed gets to stay up and stay alive and continue to grow.”
But HandUp’s gift card program — where people obtain endow placards and paw them out to beings on wall street of San Francisco — will be placed on hold at the end of this year.
When HandUp firstly started, the goal was to create a scalable business that could grow and have the biggest influence probable, Broome said. Since then, HandUp heightened $2.4 million in gifts for 100 nonprofits across the country and facilitated 25,000 people satisfy some of their basic needs, like home and medical care. While the business itself wreaked, the scale only wasn’t there.
“What we’ve feel is we created something that was helping people and ripened to a bigger proportion, but it wasn’t going to get to the scale we needed it to be to work as a thriving tech startup.”
HandUp benefactors Broome and Sammie Rayner, and CTO Barney Jackson, will stay on as advisors, but will no longer officially work for the company. Moving forward, some members of the HandUp team will join Salesforce.org, but Broome isn’t quite sure what her next move will be.
Before founding HandUp, Broome worked on President Barack Obama’s 2008 expedition. She’s thinking of getting back involved in politics in some way, which necessitates resting up for the 2020 presidential campaigns.
HandUp had previously conjured $1.7 million from investors like Jason Calacanis, Alexis Ohanian, Marc Benioff, Cyan and Scott Banister, Precursor Ventures and others.
“I think it’s bittersweet for them too, ” Broome said. “They’re delighted to see that HandUp can live on but certainly, they were investing in the bigger vision and the bigger see didn’t happen.”
The bigger eyesight, Broome said, was to get the fundraising stage to a profitable target and eventually evolve into a technology pulpit for human business. Broome envisioned intersecting with SNAP curricula, Medicare, Medicaid and the databases human assistances use.
“To say a startup concentrate on homelessness is going to have a positive departure, all things deemed, is shocking, ” Broome said. “We did every single concept that we are capable of and worked so difficult and developed something glorious and it’s going to live on. That’s the outcome we’re truly celebrating.”
HandUp investor Cyan Banister seems to be on the same page as Broome. She likewise recognizes that what Broome tried to achieve was difficult, she told me.
“I hoped she could figure out a practice to align profit with her duty and create a company that didn’t rely on a nonprofit prototype, ” Banister told TechCrunch. “I’m pleased to say that she found a space for her vision to live on and isn’t giving up. This is a better sequel than shutting down.”