Salsa Labs receives $1 Million Investment from Maryland Venture Fund

BALTIMORE, MD (May 29, 2014) – The Maryland Department of Business and Economic Development (DBED) announced today that Salsa Labs, creator of the nonprofit platform to grow, engage and retain a base of online support, has received a $1 million investment from the State-run Maryland Venture Fund (MVF) and has committed to moving its operations and 50 employees to Maryland from offices in Washington D.C. and Virginia. Edison Ventures, an investor in information technology businesses, led the $5 million round.

“We are proud to make the largest-ever Maryland Venture Fund investment in Salsa as they bring their cutting-edge technology and exciting growth to Maryland,” said DBED Secretary Dominick Murray. “High-tech and innovative companies like Salsa are critical for the health of Maryland’s vibrant Innovation Economy, and we are committed to support them as they expand and create family-sustaining jobs.”

“Online engagement is key to a nonprofit’s long-term success, and we have built a comprehensive, easy-to-use solution focused on enhancing how the nonprofit organization connects with its donors and activists,” said Salsa CEO, Scott Stouffer. “With this funding, we will continue to invest in supporter-centric product innovation that furthers our clients’ missions.”

“Salsa continues to lead the nonprofit market, driven by its innovative products and strong management team,” said Sever Totia, Edison Ventures principal and Salsa board member. “The company’s application suite brings tremendous strategic advantage to nonprofits by integrating disparate point solutions and enabling online, social supporter engagement that’s more critical than ever.”

More than 2,000 organizations and 15,000 campaign managers depend on Salsa software to build relationships, rapidly grow their member base, and actively engage more than 90 million supporters. Salsa’s nonprofit clients have raised more than $280 million and driven more than 36 million actions online in support of their cause.  Salsa recently added Families USA, the Sunlight Foundation and others to its client community. Existing customers include Protect Our Defenders, Aid for Africa, Global Zero, National Physicians Alliance, Bikes for the World and Campaign for Tobacco Free Kids.

About the Maryland Venture Fund

The MVF is a regionally recognized leader in seed and early-stage investing and a national model for state-supported investment programs. With nearly two decades of experience and numerous successful investments, MVF invests in highly innovative technology companies across the full range of industry sectors including software, communications, cybersecurity and life sciences companies in the areas of healthcare IT, medical devices and diagnostics. Prior to the creation of Maryland Venture Partners, the MVF was recapitalized by the $84 million InvestMaryland program, a key economic initiative of Governor O’Malley. Two-thirds of the funding – $56 million – is being managed by carefully screened private venture firms that will invest the funds and, if successful, return 100% of the principal and 80% of the profits to the State’s general fund. The remaining third of the InvestMaryland capital is largely allocated to direct investments by the MVF.

About Edison Ventures

Established in 1986, Edison partners with entrepreneurs, service providers and other financing sources to build successful companies.  Edison provides capital and value-added services to later stage ($5 to 20 million revenue), information technology businesses.  Initial investments range from $5 to 10 million.  Edison typically serves as sole or lead investor.  In addition to providing expansion capital, Edison funds management buyouts, recapitalizations, spinouts and secondary stock purchases.