Crowded raises $7.5M to help nonprofits navigate funding freeze and financial uncertainty
Crowded, a fintech startup streamlining financial management for nonprofits, has secured $7.5 million in Series A funding, bringing its total raise to $13.5 million. The round was led by Flashpoint, a $500 million transatlantic VC firm known for backing companies like Guesty, Chili Piper, and Mesh Payments.
The funding comes as nonprofits grapple with financial uncertainty following President Trump’s federal funding freeze. An executive order halting certain federal grants has left thousands of nonprofit programs in a tough spot, forcing them to look for alternative financial solutions. The shake-up has made financial transparency and efficiency more urgent than ever—two areas where Crowded steps in with AI-driven financial tools.
Flashpoint was joined by other investors including the Florida Opportunity Fund, Wilson’s Bird Capital led by Efi Shema, and existing backers Sarona Ventures and The Garage.
Crowded will use the fresh capital infusion to continue to strengthen its platform and equip nonprofits with the advanced tools they need to manage finances and compliance.
“With this funding, we’ll be able to focus even more on what matters most—making payment processing and tax compliance easier for nonprofits. These are critical areas for many organizations, and we’re committed to improving the tools that help them do their work more efficiently,” Crowded said in a blog post.
Founded in 2021 and based in Miami, with offices in Tel Aviv, Crowded is building a financial infrastructure tailored to nonprofit organizations. By offering digital banking, automated reporting, and compliance tools, it’s helping membership groups, charities, and religious institutions manage finances efficiently—freeing them up to focus on what matters most.
Since its inception four years ago, Crowded has gained traction with over 35 institutional customers, including Harvard Athletics, Pi Kappa Alpha Fraternity, and various Girl Scouts of the USA councils. Harvard Athletics, for instance, is using the platform to manage per diems for student-athletes, who can now spend funds through digital debit cards and make instant, fee-free transfers.
By digitizing financial management and eliminating manual processes, Crowded allows nonprofits to focus on their core mission rather than paperwork. The platform offers multi-chapter banking, payment processing, expense management, and AI-powered tax filing services—helping organizations maintain financial oversight and compliance without the usual hassle.
“In the wake of President Trump’s executive order & funding freeze, the spotlight on nonprofit financial management and accountability has never been brighter,” said Daniel Grunstein, Co-Founder and CEO of Crowded.
“Nonprofits handle $3.9 trillion in payments annually and make up 14% of US GDP, yet outdated systems and fragmented processes hold back their efficiency and impact. This funding allows us to expand our nonprofit financial management platform with payment processing, compliance, and AI-powered taxation tools—giving nonprofits the modern infrastructure they need to operate as seamlessly as the world’s top enterprises. By solving these challenges, we’re enabling organizations to focus less on administration and more on their mission to drive change.”
Flashpoint sees Crowded’s mission as more relevant than ever. “With the recent funding freeze creating uncertainty for nonprofits, solutions like Crowded are more critical than ever,” said Noam Wolf at Flashpoint. “Crowded is dedicated to helping nonprofits focus on their mission rather than their balance sheets, and this moment highlights the urgent need for financial transparency and resilience. We are proud to support their growth and look forward to seeing them empower more organizations to do good.