The recent merger of Hometown and Schoolfundr signals a broader shift in the relationship between the private and public sectors
By Exec Edge Editorial Staff
From athletics to performing arts, extracurricular programs are a cornerstone of student development and community engagement across the United States, at both the K-12 and collegiate levels. Yet budget constraints across the U.S. education system have squeezed access to vital resources for these programs. Enter the private sector.
The education technology marketplace that has shaped over the past decade has only grown, its utility made crystal clear by the COVID-19 pandemic. Among other creative solutions, cash-strapped administrators and athletic directors nationwide have leveraged third-party tech solutions to bridge gaps and sustain programs. The December merger of two of edtech’s biggest players – Hometown, a Nexa Equity-backed startup, and Schoolfundr – symbolized continued demand for private sector relief in the public sector.
Founded in 2016, Hometown began by offering schools a robust suite of solutions to manage the marketing, operations, and revenue of in-person events like football games and schools’ theater programs. The company expanded nationwide, finding resonance with cash-strapped athletic directors and other administrators, with a footprint of thousands of schools across states like Texas, Florida, North Carolina, and more.
With 20% of Hometown’s customers already using its platform to support fundraising efforts, the company saw an opportunity to expand its impact. Schoolfundr, launched in 2022, provided the perfect complement with its unique fundraising model. The combined platforms of Hometown and Schoolfundr offer a lifeline to schools struggling to generate revenue for and manage extracurricular activities, Hometown CEO Nick Mirisis says, by using innovative tools that are tailormade for the education sector.
While many fundraising platforms take as much as 30% of donations, Schoolfundr charges only a 3% credit card processing fee, relying instead on voluntary tips from donors. This allows schools to retain more of their raised funds, providing a critical boost to programs under financial strain.
“Our mission is to ensure that more money stays in schools and goes directly to the programs that need it most,” Mirisis said. “This merger is about addressing a systemic problem in education funding and giving schools the tools they need to thrive.”
The terms of the transaction have not been disclosed. However, the combined impact of Hometown and Schoolfundr for schools to date is valued at $1.3 billion, a recent Hometown release stated.
The merger is backed by a $75 million growth equity investment in Hometown by Nexa in 2022, which since enabled Hometown to achieve cash-flow positivity and chart a map for long-term growth. This financial stability is critical in ensuring the company can continue to provide equitable solutions for schools, Mirisis said.
The combined leadership teams of Hometown and Schoolfundr have worked together for 14 months to align their operations and preserve choice for athletic directors.
“The merger prioritizes collaboration over consolidation,” said Dennis Levene, founder of Schoolfundr. “Both companies are maintaining their core focuses and continuing to operate business as usual, with zero interruptions for our partners, a crucial point given that we are in the middle of the school year.”
Hometown is positioning itself to scale further, with its growth roadmap including the upcoming release of Engage. The free platform will allow schools to showcase rosters, scores, photos, and events online.
“This creates additional opportunities to raise awareness, deepen community connections, and manage online presence—all at no additional cost to schools or districts,” Hometown stated in a recent announcement.
With philanthropic contributions to K-12 schools lagging behind the $58 billion annually raised by higher education institutions, companies like Hometown and Schoolfundr are helping to close the gap. Their expansion comes amid increased demand for online fundraising among schools, with a 12.7% increase in K-12 online fundraising in 2022 alone.
The education sector, traditionally slow to adapt to change, has embraced these solutions as schools look for alternatives to high-fee fundraising platforms. Competitors reliant on traditional revenue-sharing models now face mounting pressure to pivot as schools demand more options.
With approximately 40,000 schools in the U.S. still untapped, the field is wide open for further innovation. Yet in this particular landscape, the competition goes beyond pure capitalistic interest, Hometown’s CEO insists.
“We’re not just providing tools; we’re creating lifelines,” Mirisis said. “Athletic directors and administrators are being forced to do more with less, and our solutions are designed to help them meet those challenges head-on.”
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