Fintech Innovations: New Solutions for Nonprofits and Banking

Givefront, a fintech startup founded by Harvard dropout Matt Tengtrakool and UC Berkeley's Aidan Sunbury, has raised $2 million to create a financial platform specifically for nonprofits. This sector generates approximately 6% of the U.S.

GDP, yet many nonprofits still rely on outdated financial tools. Givefront aims to modernize spend management, compliance, and reporting for about 1.9 million registered nonprofit organizations in the U.S.

Tengtrakool's experience running nonprofits revealed significant gaps in financial tools available to these organizations, which face strict regulatory requirements. Initially, Givefront focused on banking and accounting but shifted to spend management and card solutions as nonprofits found it easier to switch payment methods than overhaul entire accounting systems.

The platform integrates with legacy accounting software while providing nonprofit-specific features such as grant-based budgeting and automated reporting. Since launching its cards six months ago, Givefront has onboarded hundreds of organizations, reporting over 200% month-over-month growth in revenue and payment volume.

The company is targeting to serve around 1,000 nonprofits by the end of the year and aims to reach 5,000 by mid-next year. Their recent funding round was led by Script Capital, with contributions from Y Combinator, C3 Ventures, and others.

The team, which includes a 17-year-old founding engineer, has faced challenges due to their youth, but adoption has been strongest among churches and religious organizations, which often have limited financial staff.