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Gumroad isn't accepting new investments

Gumroad’s deadline was April 7, 2021

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Gumroad

Powering the online creator economy
B2C Creator Economy Software
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Featured image of Gumroad
Fully Funded
$5,000,000
Raised
7,331
Investors
Successfully funded and closed on April 7, 2021.
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Co-investors
First Round Capital
Seed-stage, technology VC firm
First Round is a venture capital firm that specializes in providing seed-stage funding to technology companies. Founded by Josh Kopelman and Howard Morgan, First Round typically provides seed-stage funding and focuses on portfolio companies' growth during their first 18 months. It has offices in San Francisco, Philadelphia and New York. Portfolio companies include: Uber, Warby Parker, Square, Flatiron Health, Ring, Flexport, Looker, Birchbox, Blue Apron, Boxed, HotelTonight, Mint, Notion, Superhuman, Roblox, Mirror, GroupMe.
First Round Capital also invested in:
Companies
Pitch Updates 23 Reviews 1796
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Closed on April 7, 2021. Information may not be up-to-date. Campaign closed on April 7, 2021. Information displayed may not be up-to-date.
Problem Solution Product Traction Customers Biz. model Market Competition Vision and strategy Funding Founders
About Team

Documents

Republic (OpenDeal Portal LLC, CRD #283874) is hosting this Reg CF securities offering by Gumroad, Inc.. View the official SEC filing and all updates:
Official SEC Logo Form C SEC.gov
Company documents
Gumroad Crowd SAFE Gumroad Form C:A.pdf Gumroad Form C.pdf
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Hear from some of the 7,331 investors in Gumroad


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Highlights


$5M+ raised
Company has previously raised over $5M in capital
$5M+ revenue
Company had over $5M in revenue in the past 12 months
Notable angel backing
Company is backed by a notable angel investor
Profitable
Company has been profitable for the past 6 months

Gumroad is a platform that makes it simple to sell online. Since launching in 2011, creators on our platform have sold more than $390 million of products. In 2020, we processed $143.8M of sales on Gumroad.

  • 74K+ creators on the platform have earned over $390M
  • Gumroad takes 3.5% - 8.5% of sales
  • $9.2M net revenue in 2020 (+87% from 2019)
  • $1.08M net profit in 2020 (+286% from 2019)

Problem


Creators deserve to get paid directly by their audiences

There are millions of creative people out there producing valuable digital products. E-books, software applications, guides, animation, tutorials, and much more.

But selling products online, and managing customers, can be complex and time-consuming. Sellers need to build checkout and product pages, have reliable payment processing, and handle many other aspects of ecommerce.


Solution


Streamlining online commerce

We make it simple for creators to sell their goods online. Sellers can quickly and simply get their own online business running.

Here are some of the services we offer.

  • Build product and checkout pages

  • Handle payment processing, chargebacks, etc 

  • Customer management: communicate with your customer base with offers

  • Gumroad charges reasonable rates, which range from 3.5% - 8.5% of sales (includes processing fees)

So far we’ve helped more than 74,000 creators earn hundreds of millions of dollars.

Product


You're covered–from signing up to your 100th pay day 

Gumroad is the easiest way to get started, but it's also a great place as you grow.

We provide a "home" for creators, but we also we help creators sell digital and physical products, build email lists, run membership businesses, and more.

You can also learn from your data as you grow; our analytics help you discover what's working for you and what could be working better. 

Traction


Our 74K+ creators have earned over $390M

Creators grew their GMV (gross merchandise volume) by 94% in 2020 alone.

2020 by the numbers

Revenue:                 $9,210,793 (+87%)

Gross profit:             $2,685,579 (+105%)

Net income:             $1,058,745 (+268%)

Customers


Gumroad is for creators

We serve anyone who wants to sell anything – be it digital or physical – online. Our customers include writers, designers, coders, comic creators, directors, musicians, standup comedians, photographers, personal trainers, and more. The list is literally infinite!

Business model


We make money when our creators make money

We make money in three ways:

  • Charging a fee on creator GMV (between 3.5% and 8.5%)
  • Charging for a premium SaaS offering (starts at $10 a month)
  • Discovery fee (10% for sales we refer to our creators)

Market


The creator economy is just getting started

We aim to become the default platform for creators of all stripes to sell their products directly to their audiences online.

Competition


By creators, for creators

Most of our competitors have raised venture capital. Our strategy is different: turn our creators into owners.

Vision and strategy


Improving and expanding

Using the proceeds from this round of funding, we'll be growing our team and using additional resources to ship features to help our creators scale.

We’re also expanding our offerings. For most of Gumroad’s history, we have focused on digital products such as software and apps, animation, e-books, music, comedy, and more. Now for the first time we’re expanding to physical products and membership products such as newsletters. 


Funding


Gumroad has raised $8.1M since 2011

Gumroad has been through two prior rounds of funding. We’ve raised a total of  $8M+ since 2011, when we first began our seed round. We have raised money from investors including Kleiner Perkins, First Round Capital, SV Angel, Max Levchin, Naval Ravikant, among others. 

Founders


Creator turned entrepreneur

Sahil Lavingia built the first iteration of Gumroad in a single weekend, back in 2011.

Before Gumroad, he was employee #2 at Pinterest.

Deal terms


Valuation cap

$100,000,000

The maximum valuation at which your investment converts into equity shares or cash.
Learn more

Discount

20%

If a trigger event for Gumroad occurs, the discount provision gives investors equity shares (or equal value in cash) at a reduced price.
Learn more.

Minimum investment

$100

The smallest investment amount that Gumroad is accepting.
Learn more

Funding goal

$5M

The maximum amount the offering can raise is $5M.
Learn more

Deadline
Gumroad needs to reach their minimum funding goal before the deadline ( ). If they don’t, all investments will be refunded.
Learn more
Type of security

Crowd SAFE

A SAFE allows an investor to make a cash investment in a company, with rights to receive certain company stock at a later date, in connection with a specific event. · Learn more

How it works

Documents

Republic (OpenDeal Portal LLC, CRD #283874) is hosting this Reg CF securities offering by Gumroad, Inc.. View the official SEC filing and all updates:
Official SEC Logo Form C SEC.gov
Company documents
Gumroad Crowd SAFE Gumroad Form C:A.pdf Gumroad Form C.pdf

Why others invested

See all reviews (1796) See all (1796)

Gumroad is a great example of how to empower people. More people are finding viable ways to make a living creating what they love. Gumroad is well positioned to educate, connect, and help creators sell more, while capitalizing on this new market. Gumroad is economic empowerment and education in one great product. Sahil is a capable leader, and I invested half of what I could following his example of wanting as many people on board as possible.

Profile picture of D'Aaron Gonzalez
D'Aaron Gonzalez
Investor
about 5 years ago

I'm already a customer of Gumroad and am optimistic about its efforts to expand its offerings, role, and customer base in the creator economy.

Profile picture of Chris Messina
Chris Messina
Active investor
about 5 years ago

I've been a part-time creator on the platform since 2011, published my first book of poems here, and believe not only in its potential but its real value for creators and the public. Gumroad was at the forefront of big little things like accepting credit cards without a full address and workflows. You have a stellar engineer on board and I like how you treat your people.

Profile picture of Tanya Moushi
Tanya Moushi
Investor
about 5 years ago

About Gumroad

Legal Name
Gumroad, Inc.
Founded
Sep 2011
Form
Delaware Corporation
Employees
1
Website
gumroad.com
Social Media
Headquarters
Google Map location of of Gumroad
548 MARKET ST #41309 , San Francisco, CA
Headquarters
548 MARKET ST #41309, San Francisco, CA, United States 94104-5401

Gumroad Team
Everyone helping build Gumroad, not limited to employees

Profile picture of Sahil Lavingia
Sahil Lavingia
Founder
Sahil Lavingia
Founder
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Gumroad

Gumroad successfully raised $5,000,000 from 7331 investors on April 7, 2021
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Chris, Shamoon, Vishal, Erica, Praveen, and 7326 others invested. 1796 Reviews
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