Bono Backs Omaze, a Charity Fundraising Platform Used by Billionaire Richard Branson
Charity fundraising platform Omaze, which offers celebrity meet-and-greets and other fundraising experiences, landed its most high profile client this year: billionaire Richard Branson. Now it's hoping to take off.
Omaze announced on Thursday it raised $85 million in a Series C funding round led by Louis Bacon's Moore Strategic Venture along with high-profile investors, including singer Bono, actress Kerry Washington, football star Tom Brady and Reddit co-founder Alexis Ohanian.
The company promises nonprofits that it can raise far more money than traditional galas or other fundraising events with their star-studded online campaigns — which have included celebrities such as Michelle Obama and Oprah — and prizes like a custom tiny home or a Lamborghini blessed and signed by Pope Francis.
Omaze organizes the campaigns and handles the marketing, content and outreach. The Culver City-based company works with the Charities Aid Foundation America and says it has raised about $150 million for over 400 charities. Omaze estimates on its website that its cut averages about 12% to 20% percent of all donations, regardless of the campaign.
"By offering everyone the opportunity to win a $5M house or go to space, we can fund the causes creating opportunities for the underserved," said CEO and co-founder Matt Pohlson in announcing the raise. "This funding empowers us to expand our prizing and donor base internationally."
Earlier this year, Branson launched a sweepstake on its platform to win a seat on the Virgin Galactic VSS Unity, the same spacecraft that carried him into space in July. The winner has yet to be announced.
Launched in 2012, the company began offering travel and one-of-a-kind cars in 2019 and has boasted 100% percent growth since. It competes against companies like GoFundMe, which also offers fundraisers but mostly appeals to individuals trying to raise funds for friends and family. Another fundraising platform, Arizona-based RallyUp, works with charities to build out their events online.Other investors include FirstMark Capital — which led a $30 million round in August 2020 — along with Wndrco, Telstra Ventures, Causeway Media Partners, Mockingbird Ventures, BDMI and Pegasus Tech Ventures.
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