Nonprofit Software - Coverage Report March 2021

Published on: 03/18/2021

Capstone Headwaters has released its March 2021 Nonprofit Software Industry Update, available for free download below.

Although software companies focused on in-person events have been hurt by stay-at-home orders, COVID-19 has generated demand for software providers with Nonprofit clients seeking to diversify funding.  As corporations have increasingly encountered scrutiny for their position around social issues amid the pandemic and Black Lives Matter (BLM) movement, enterprises have heightened focus on corporate social responsibility (CSR) and environmental, social, and corporate governance (ESG).  Capstone expects the combination of rising CSR and accelerated technology adoption to produce heightened market activity in 2021.

Report highlights include:

  • Merger and acquisition (M&A) activity declined in 2020 from prior years, with 21 deals announced or closed.  
  • A total of $4 billion in M&A transaction volume has been recorded since the start of 2015.
  • Private equity (PE)-backed rollups have quieted in 2020 and investors struggle to find meaningful revenue scale for platform investment.
  • As an extension of the Capstone Cares initiative, Capstone’s Nonprofit Software deal team has committed to donating 1% of deal success fees to a local charity of the client’s choosing.

To learn more about the contents of the report and Capstone Cares, please reach out to Director Teak Murphy.

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Key Contacts

Teak Murphy


David Michaels

Managing Director