TechSoup Risk Capital - 5%

Offering Description

NOTE - This Offering is made directly by TechSoup Global without broker dealer representation. Bequia Securities, LLC, a U.S. SEC registered broker dealer has requested clearance from FINRA to represent this offering, which request is still pending.

 

Join Our Effort to Strengthen Global Civil Society While Earning Interest on Your Investment.

Please note that there are THREE investments available for the TechSoup offering, all with 5-year terms. You are currently viewing the Risk Capital Note, it is only available to accredited investors and institutions*, with a minimum investment of $50,000 and a 5% interest rate. The Community Capital Note is available to all investors, with a minimum investment of $50 and a 2% interest rate. The Patient Capital Note is also available to all investors, with a minimum investment of $2,500 and a 3.5% interest rate.


TechSoup connects civil society organizations and changemakers around the world to the resources they need to design and implement technology solutions for a more equitable planet. For more than 30 years, we've built the largest network of civil society organizations the world has ever seen. 

TechSoup is in the second year of a direct public offering (DPO) that offers impact investment opportunities to people of all economic backgrounds. This is more than just an investment. It's a chance to join us — and civil society organizations everywhere — in our mission to build a better world.

TechSoup is raising $11.5 million over three years, using three different unsecured promissory notes with different minimum investments and rates of return. 

In its first year, TechSoup raised over $8 million through the Direct Public Offering, loans and donations. In year two, we will raise the remaining $3.35 million of the total campaign.

Through this innovative offering, you’ll earn interest on your investment, and receive repayment of principal at the end of a five-year term. Investment minimums are as low as $50, and returns range from 2 to 5 percent annually.

This will allow us to increase the resources distributed globally from $1.995 billion last year to $4.8 billion by 2023. We’ll increase our reach to serve 1.7 million organizations around the world. For every $100 invested, we’ll distribute an estimate $47,000 of additional resources to the nonprofit sector.  

It's time to help these organizations further activate and transform their communities, and build a brighter future for the tens of millions of people they serve across the planet.

* Please see more detail about investor requirements in Offering Options section below.

Related Files

Date Name Document Type Action
10/08/2019 Executive Summary Financials View
10/08/2019 Summary of the Offering Financials View
09/27/2019 DPO Offering Circular Financials View

Offering Details

Investment:
$3,350,000 of $11,500,000 total capital raise

Use of Proceeds:
TechSoup will use the funds to execute on five key initiatives to scale its impact globally (further described below):

  1. NGO Technology Marketplace 
  2. Global Validation and Data Services
  3. Apps for Good 
  4. Scale Business Processes and Systems 
  5. Cooperative Technology Platform (CTP)

Investment Structure:

There are three separate unsecured subordinated promissory notes: Community Capital Notes, Patient Capital Notes, and Risk Capital Notes. The Community Capital Notes and Patient Capital Notes are available to all Investors, as long as the investors meet the “Investor Requirements” as stated below. The Risk Capital Notes will be offered to larger accredited investors and institutions.

Each class of Notes will have different interest rates, and minimum investments, as follows:

 

TechSoup Offerings

Offering Options

Investment Opportunities for Every Investor

There are three tiers of investment available to individuals and institutions for TechSoup's direct public offering:

List of TechSoup Offerings

*Investor Requirements: Non-accredited investors can invest in Community Capital and Patient Capital Notes as long as investment amounts don’t exceed 10% of of annual income or 10% of net worth, not including primary residence. Risk Capital Notes are open to accredited investors and institutions only. 

About TechSoup

For the past 30 years, TechSoup has built the largest network of civil society organizations the world has ever seen.

TechSoup, a 30-year old, growing, well-managed 501(c)(3) public benefit corporation with healthy financials, has delivered value to more than one million non-governmental organizations (NGOs), nonprofits, charities, community organizations, and libraries in 236 countries and territories. TechSoup’s award-winning technology donation program has grown to reach more than 159,000 organizations a year, helping more than 100 corporate donors distribute an annual retail volume of almost $2 billion in donated or specially-discounted technology and other critical resources. TechSoup has now created a next-generation giving platform that has facilitated over $10.7 billion of in-kind product philanthropy and an increasingly diverse set of philanthropic services and giving programs since its launch in 2002.

TechSoup is successfully managing paradigm shifts in the technology sector affecting its operations, including the transition to cloud computing. TechSoup is investing to diversify its offerings to support civil society based on long-range strategic planning, while simultaneously protecting the income generated from its core product donation programs to ensure ongoing sustainability.

The leadership team and Board of Directors at TechSoup seek to raise $11.5 million in growth capital over three years to support the execution of its strategy. In its first year of fundraising, TechSoup has raised over $8 million of the $11.5 million goal from its Direct Public Offering, loans and donations. In year two, it intends to raise the remaining $3.35 million. TechSoup has a proven track record of taking relatively modest investments and turning them into successful, highly leveraged offerings. These offerings have generated earned income, strong repeat business, and social impact.

TechSoup - Five Initiatives

Five long‐term, strategic initiatives have been identified to support TechSoup’s rapid growth, focusing on growing both its core business and new lines of business and programming, scaling its internal capacity, and developing a nimble platform for the core product.

1. NGO Technology Marketplace

Scale the quantity and breadth of donated and specially discounted technology offers in TechSoup’s catalog; expand outreach to NGOs globally; connect NGOs with curated support resources to accelerate their ability to adopt and optimize their use of new technologies to accomplish their missions.

TechSoup’s award-winning technology donation program has facilitated over $10.7 billion of in-kind technology philanthropy, donated and discounted products, and services and funding to NGOs since 2002. It is a vital resource for hundreds of thousands of nonprofits and impact-oriented technology corporations.  TechSoup is increasing the breadth of its offers to include more hardware, more mobile, and more cloud-based subscription offers. When access alone is not enough, TechSoup also helps nonprofits choose appropriate technology and integrate it into their business processes and staffing models. Improved technology applications go a long way to achieving this, but human capital is sometimes required to close the “last mile.” This may include expert IT guidance, online and offline learning opportunities, and other resources. These new offers are projected to scale rapidly.

2. Global Validation and Data Services

Expand sector resources and impact through validation services and data solutions; facilitate international giving at scale.

TechSoup has created and offers two types of services that validate the authenticity of organizations around the world: the first, Validation Services, assesses a nonprofit’s status in accordance with local laws, while the second, NGOsource, provides equivalency determinations that assess if an organization outside the United States meets the requirements of Section 501(c)(3) of the US Internal Revenue Code, which governs US charitable organizations.  As a result of decades of outreach and programmatic activity through TechSoup Global Network, TechSoup has an incredibly rich repository of data records in aggregate of more than 1 million NGOs around the globe. Each one of these has been validated against critical criteria. This makes it possible for any donor partner to efficiently and inexpensively connect their offers with validated NGOs in 236 countries and territories. Thus, TechSoup Validation Services has the potential to open up a vast array of special offers, services, resources, and information for the nonprofit sector. TechSoup is now developing new ways for donors to access its expertise, reach, and matching capabilities. 

3. Apps for Good

Design, build, and distribute scalable social sector technology apps and introduce low-cost, low-code, secure Platform-as-a-Service (“PaaS”) offerings that enable impact beyond TechSoup branded offers. 

The Apps for Good line of business is comprised of two main programs: community mobile and web app development led by TechSoup’s Caravan Studios and TechSoup Europe (Fundacja TechSoup), and PaaS, which is projected to be launched in TechSoup’s FY19.  Both mobile technology and PaaS services are increasing rapidly. The TechSoup service areas described in Initiatives 1 and 2 are enabled by a platform, application framework, and design processes that suit the social sector – collectively the Cooperative Technology Platform. Once in place, these assets can be leveraged to develop technology applications that other social good and community-based projects often envision – yet find elusive to fund, or overwhelming to create. TechSoup sees significant opportunity to foster innovation and design for civil society apps and to open its technology, data, and human processing with a low-code application framework. This will support scalable, affordable applications to meet a variety of nonprofit needs for website or apps, and open TechSoup’s distribution and marketing channel to NGOs so they can take advantage of targeted apps. Technology applications – responsive and mobile – have enormous potential to increase social sector impact. 

4. Scale Business Processes and Systems

Test, build, and refine new marketing, sales, distribution, and support strategies.

To support the diversification of services, programs, and new business models, TechSoup must invest in marketing, sales, distribution, and support strategies. As the TechSoup organization and capabilities grow, its marketing, sales, and support strategies must also grow in an efficient manner. As TechSoup undertakes the strategic initiatives outlined in this document, new technology, new business models, and new skills, functions, and business processes must be developed. In addition, the organizational transformation required to support these strategic outcomes is significant.

5. Cooperative Technology Platform (CTP)

Complete product development of the CTP to support the social businesses outlined in Initiatives 1, 2, and 3 above as well as the business processes outlined in Initiative 4 above.

The CTP is TechSoup’s next-generation technology platform and underpins the Organization’s strategic vision and the realization of highly-leveraged social impact. The CTP provides a secure, scalable platform supporting diverse and curated interactions and resource-matching across the social sector to generate the network effects that are possible within a multi-sided platform. The CTP revolutionizes the two-sided platform TechSoup previously offered, which supported only a limited set of highly constrained “transactions” between a nonprofit and TechSoup, such as requesting donations or consuming web content. The multi-sided platform supported by the CTP allows a vastly larger set of validated civil society stakeholders to connect and exchange value in a secure, scalable, and flexible technical environment.

Business Risks

All private securities listed through online investment platforms like SVX are likely to carry more risk than those available on the public markets. Our goal is to make you aware of those risks before making an investment. The following risks have been identified for investors:

  • Security Risk - A failure, disruption, cyberattack, or other breach in the security of an information technology system or infrastructure that TechSoup utilizes could adversely affect its business and reputation and increase its costs.
  • Technology Risk - Interruptions or delays in services from TechSoup’s third-party data center hosting facilities or cloud computing platform providers could impair the delivery of its services and harm TechSoup’s business.
  • Client Risk - TechSoup's success depends on its ability to respond and adapt to changes in technology and consumer behavior.
  • Competitive Risk - Changes in level of competition may have a material adverse effect on TechSoup’s business.
  • Liability Risk - TechSoup’s services may have errors or defects that could result in unanticipated downtime for its subscribers given their complexity incorporating a variety of hardware and proprietary third-party software.
  • Market Risk - If TechSoup fails to promote and maintain its brand in the market, TechSoup’s business, operating results, financial condition, and its ability to attract customers could be materially adversely affected.
  • International Risk - TechSoup’s affiliation with international operators exposes it to risks inherent in foreign operations that could harm its business.
  • Regulatory Risk - TechSoup believes that it does comply with the rules and regulations required of it. However, if TechSoup operates in breach of the law, it may be subject to penalties that could impede its ability to continue doing business, or it may be subject to lawsuits.
  • Key Relationship Risk - TechSoup’s revenue model depends on key relationships which have a material effect on the business.
  • Personnel Risk - Much of TechSoup’s success depends on the skills, experience, and performance of its key persons. TechSoup currently does not have a firm plan fully detailing how to replace any of these persons in the case of death or disability.

Management Team

Rebecca Masisak

Rebecca Masisak

Chief Executive Officer

Ms. Masisak sets the strategic direction for TechSoup and provides executive oversight of all aspects of the organization and its global operations.

Ms. Masisak joined TechSoup in 2001 to launch its e-commerce donation platform, moving the organization from a local San Francisco Bay Area focus to a national reach. In 2006, she founded the TechSoup Global Network to scale the program’s impact globally. Ms. Masisak became CEO of the organization in 2012, after having served the prior six years as co-CEO.

Ms. Masisak previously worked as a strategy consultant with Coopers & Lybrand and in leadership roles at several Internet businesses.

Ms. Masisak holds an M.B.A. from the Columbia University Business School. In 2017, she was honored as one of the nonprofit sector’s “top 50 most influential leaders” by the Nonprofit TImes and named one of the “most influential women of the Bay Area” by the San Francisco Business Times. She co-leads the Bay Area Social Enterprise Leadership Forum.

Ken Tsunoda

Ken Tsunoda

As vice president of development, Ken Tsunoda directs investment, grants management, and foundation relationships at TechSoup while also providing guidance to build NGOsource as the leading resource for grantmakers to obtain equivalency determinations.

With a career in management for nonprofit organizations, technology startups, and leading global firms, Ken brings informed experience to his role. He previously served as executive director of Sager Family Foundation, which incubates social ventures in conflict areas, including Rwanda, the West Bank, Pakistan, and Afghanistan. He worked as executive director of Young Presidents' Organization (YPO) Peace Action Network, a nonprofit initiative that mobilizes a global network of 20,000 business leaders to make an impact on issues such as regional conflict, poverty, education, and the environment. Other roles have included managing director at California Manufacturing Technology Consulting (a nonprofit economic development program) and international business positions in the United States and Japan.

$50,000.00

Raised in This Offering Of $3,350,000.00 Goal

Days Remaining 345
Hours 16
Mins 23
Debt Offer. Structure
5% Ann. return
5 Years Term

Year 2 of TechSoup's Growth Capital Campaign
(See chart below* for total Campaign raise to date)