PayHOA, a beforehand bootstrapped Kentucky-based startup that gives software program for self-managed home-owner associations (HOAs), is an instance of how real-world issues can translate into alternative.
It simply raised a $27.5 million Series A spherical in an setting the place almost $30 million Series A rounds are not frequent.
PayHOA founder and CEO Mike Bollinger has been placing his finance diploma to good use. The entrepreneur began PayHOA in 2018 after promoting two different corporations — LegFi.com, a startup targeted on fraternity and sorority monetary administration and File990.org, which catered to nonprofit tax compliance wants — to Togetherwork in 2018.
Bollinger says expertise working with volunteer-based organizations fueled his need to create PayHOA.
“While larger companies catered to professional property managers, self-managed HOAs struggled,” he advised TechCrunch. “They were forced to cobble together solutions with unconnected tools or generic software not designed for their specific needs — some even came to us with shoe boxes of paper receipts.”
PayHOA’s SaaS providing acts as a “central hub” for affiliation board members, dealing with funds, upkeep requests and communication with their communities, Bolinger says.
Notably, PayHOA says it’s worthwhile (with constructive EBITDA), which helps clarify the way it managed to land such a decent-sized Series A spherical in what stays a difficult fundraising setting, particularly for non-AI startups. The 15-person startup notched year-over-over income development of over 70%. It has greater than 652,000 customers, and makes cash by charging a month-to-month subscription price primarily based on the variety of models locally. Prices begin at $49 monthly for HOAs with 25 models or much less. Self-managed HOAs account for 30% to 40% of group associations, made up of two.5 million volunteer board members.
The resolution to boost outdoors capital for the primary time stemmed from PayHOA reaching a essential inflection level, in keeping with Bollinger.
“We’d found product market fit and were growing at a rapid rate,” he advised TechCrunch. “The additional capital and investor guidance will guide the business to the next level.”
The new funds will largely go towards product growth and hiring. PayHOA has plans to develop its staff by 40% throughout engineering, gross sales and help. Today, the corporate additionally introduced a Payables module, which Bollinger stated makes use of Optical Character Recognition (OCR) expertise to robotically scan and extract information from invoices. PayHOA has processed greater than $1.6 billion in invoices since 2018.
Looking forward, PayHOA doesn’t have plans to broaden outdoors of group administration, however Bollinger has seen an elevated variety of property administration corporations signing up for the platform — opening up the corporate’s whole addressable market.
“Many HOAs manage their communities themselves, and for too long, their needs haven’t been fully addressed,” Peter Fallon, a basic associate at Elephant Ventures, the agency that led the spherical, stated in a written assertion. “PayHOA recognizes this gap and provides a comprehensive platform designed specifically for self-managed HOAs. This empowers them to access powerful tools typically reserved for larger communities.”
