Indianapolis-based BidPal Network announced on Tuesday that it has received a $5.6 million investment from two venture capital firms.
The financing, from Allos Ventures in Carmel and MK Capital in Northbrook, Ill., will help BidPal expand into more cities, the company said.
BidPal uses handheld devices to wirelessly automate auction bidding, donations and payments for fundraising events. The software makes it easier to place bids and helps drive additional donations to not-for-profits.
BidPal is available in nearly 20 cities and plans to expand into all major U.S. markets by the end of 2012, the company said.
As part of its expansion, BidPal also is increasing its offerings. The company in August launched an event-management software platform that enables not-for-profits to better manage their auctions and donations. In June, BidPal introduced a secure payment-processing application.
BidPal is led by Chairman and CEO Scott Webber, a stalwart in the local tech community. He is best known as the former president and CEO of Software Artistry Inc., which in 1995 became the first Indiana software firm to go public.
Tivoli Systems, an IBM company, bought Software Artistry for $200 million in 1998.
Webber told IBJ in early 2010 that he thought BidPal could eventually achieve $100 million or more in annual revenue.
In the video below from IBJ's "Leading Questions" series, Webber discusses what angel investors are looking for when they investigate investing in a firm.