IT Services

PayHOA Lands $27. 5M Series A to Transform Self-Managed HOA Software

By Business OutstandersPUBLISHED: May 16, 15:11
PayHOA
Image Credit: PayHOA

PayHOA, a SaaS startup based in Kentucky that is focused on self-managed homeowner associations (HOAs), got $27. 5 million Series A funding round. This remarkable increase of funding is very unique today, especially for startups that are not AI.

PayHOA, the brainchild of Mike Bollinger, in 2018, was created to solve the specific issues of the self-managed HOAs and at the same time provides a complete software solution for the association board members. The platform concentrates the finances, maintenance requests, and community communications, thus it solves the inefficiencies of using diverse tools or the old methods such as paper receipts.

Bollinger, with his finance degree and the background of working with volunteer-based organizations, successfully started and sold two companies before—LegFi. com and File990. org—to Togetherwork in 2018. His incentive for PayHOA was caused by observing that self-managed HOAs are much more unsuccessful than those managed by professional property managers.

Incredibly, PayHOA is profitable with positive EBITDA and has 70% year-over-year revenue growth. The platform has more than 652,000 users and earns money from a subscription model, which is priced at $49 per month for communities with 25 units or less. 

The choice to seek external capital was made because of PayHOA's fast growth and product-market fit, according to Bollinger. The new funds will mainly be for the product development and team expansion by 40% in engineering, sales, and support. The most current development is the launch of a Payables module, which uses OCR technology to make invoice processing easier. PayHOA has been in operation for years and has already processed more than $1. 6 billion in invoices.

Although PayHOA is still concentrated on community management, the number of property management companies using the platform is on the rise, which may lead to an expansion of its market area.

Peter Fallon, General Partner at Elephant Ventures, the lead investor in this round, highlighted the platform's unique value: PayHOA offers a complete platform for the self-managing HOAs which is tailored to their needs and it gives them the powerful tools that are normally for the huge communities.

This new injection of capital, PayHOA is now ready to push forward its mission of transforming the self-managed HOA software , thus ensuring these communities will have the tools they need to prosper.

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