GoFundMe Confirms Its Funding Spherical, Which Valued It At $500M
GoFundMe confirmed that it has raised enterprise capital financing in a weblog publish as we speak, infusing the beforehand bootstrapped firm with money that may give it room to develop.
TechCrunch beforehand reported that the spherical valued GoFundMe at round $500 million, although considered one of our sources stated the valuation might have ended up larger than that. Our sources additionally informed us the rationale why it attracted a lot consideration from buyers — its fee of fundraising has grown 300% yr over yr. GoFundMe stated it has raised $1.2 billion from its campaigns so far.
GoFundMe earlier this yr stated it was approaching $one hundred million in funds raised from campaigns each month. However our sources inform us that it has hit that month-to-month $one hundred million goal as of June. Given the comparatively low overhead of a crowdfunding service like GoFundMe, it wouldn’t be a stretch to say that the corporate’s monetary progress is roughly consistent with that — on the time we reported the funding spherical, our sources stated it was “very worthwhile.”
Accel companions and Know-how Crossover Ventures led the spherical, with Greylock and Meritech Capital Companions additionally collaborating. John Locke from Accel Companions, Max Motschwiller from Meritech Capital Companions and James Slavet from Greylock will probably be becoming a member of GoFundMe’s board as a part of the funding spherical. In fact, the corporate beforehand had no enterprise capital companions on its board as a consequence of it being bootstrapped, so it’s bringing on enterprise capitalists because it maps out its progress.
GoFundMe sees many campaigns centered round assist and schooling tasks. Most lately it’s run a string of campaigns for victims of the earthquake in Nepal. It’s an space the place Tilt, an Andreessen-Horowitz backed crowdfunding startup, and Indiegogo are each lively. Tilt, too, has raised a funding spherical that valued the corporate at $four hundred million, TechCrunch beforehand reported. GoFundMe, in distinction to these two corporations, has been comparatively quiet about its actions.