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PayHOA , a antecedently bootstrapped Kentucky - based inauguration that offers software for self - managed householder association ( HOAs ) , is an example of how real - humans problem can read into opportunity .
It just raise a $ 27.5 million Series A round in an environment where nearly $ 30 million Series A rounds are no longer common .
PayHOA founder and CEO Mike Bollinger has been putting his finance academic degree to good use . The entrepreneur started PayHOA in 2018 after selling two other companies — LegFi.com , a inauguration focused on frat and sorority financial management and File990.org , which cater to nonprofit taxation compliance needs — to Togetherwork in 2018 .
Bollinger enunciate experience working with unpaid worker - found arrangement fueled his desire to createPayHOA .
“ While larger companies ply to professional property director , self - contend HOAs clamber , ” he separate TechCrunch . “ They were force to cobble together solutions with scattered tools or generic software not designed for their specific needs — some even came to us with shoe boxes of paper receipts . ”
PayHOA ’s SaaS offering acts as a “ central hub ” for tie-up board members , deal finance , maintenance requests and communicating with their community , Bolinger says .
Notably , PayHOA says it is profitable ( with confident EBITDA ) , which helps explain how it contend to land such a decent - sized Series A round in what remains a challenging fundraising environment , especially for non - AI startups . The 15 - soul startup notched year - over - over revenue growth of over 70 % . It has more than 652,000 users , and makes money by charging a monthly subscription fee based on the identification number of units in the community . price start at $ 49 per month for HOAs with 25 units or less . ego - manage HOAsaccount for 30 % to 40 % of community associations , made up of 2.5 million volunteer board member .
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The decisiveness to raise external capital for the first time stemmed from PayHOA reach a critical inflection point , according to Bollinger .
“ We ’d constitute intersection market set and were growing at a speedy rate , ” he assure TechCrunch . “ The additional capital and investor counselling will guide the business to the next level . ”
The new funds will mostly go toward product development and hiring . PayHOA has plans to turn its squad by 40 % across engineering , sales and supporting . Today , the society also announce a Payables module , which Bollinger said uses Optical Character Recognition ( OCR ) technology to mechanically scan and extract data from invoices . PayHOA has processed more than $ 1.6 billion in bill since 2018 .
Looking ahead , PayHOA does n’t have plans to thrive outside of community management , but Bollinger has remark an increase number of property management companies signing up for the political program — opening up the troupe ’s total addressable market place .
“ Many HOAs manage their communities themselves , and for too long , their needs have n’t been fully treat , ” Peter Fallon , a general partner at Elephant Ventures , the firm that moderate the rhythm , allege in a write statement . “ PayHOA recognizes this gap and provides a comprehensive platform designed specifically for ego - superintend HOAs . This empowers them to access powerful pecker typically reserved for larger community . ”
