Gofundme Valuation and the Rise of Crowdfunding

Gofundme was founded in 2010 by Brad keywell and Andrew Bialecki, and it quickly gained popularity as a platform for crowdfunding personal causes.

In its early days, Gofundme was bootstrapped and operated on a shoestring budget, with a team of just three people.

By 2014, Gofundme had already raised over $1 billion in donations for various causes, making it one of the fastest-growing crowdfunding platforms in the world.

As of 2020, Gofundme had processed over $9 billion in donations, cementing its position as a leader in the crowdfunding industry.

The platform's success can be attributed to its user-friendly interface and the fact that it charges no fees to creators, making it an attractive option for those looking to raise funds for personal causes.

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GoFundMe has raised $1.2 billion from its campaigns to date, with a growth rate of 300% year over year.

The company confirmed it has received venture capital financing, valuing it at around $500 million. This valuation could have been even higher, but the exact figure is not disclosed.

Accel Partners and Technology Crossover Ventures led the round, with Greylock and Meritech Capital Partners also participating. As a result, John Locke from Accel Partners, Woody Marshall from TCV, and James Slavet from Greylock will be joining GoFundMe's board.

GoFundMe's estimated annual revenue is currently $113.9 million per year, with a revenue per employee of $165,100. This is a significant figure, especially considering the company's pricing is $0 per year.

The company has been relatively quiet about its activities, but it has been involved in campaigns for victims of the earthquake in Nepal. This is an area where Tilt and Indiegogo are also active.

GoFundMe's total funding is $24.6 million, which is a relatively small amount compared to its estimated annual revenue. However, the company's financial growth is roughly in line with its fundraising growth.

Here is a summary of GoFundMe's funding and valuation:

GoFundMe is a for-profit company.

It charges a 2.9% payment-processing fee on each donation, along with 30 cents for every donation. This means that if a campaign raised $1,000 through 10 donations of $100 each, GoFundMe would collect about $32.

GoFundMe no longer charges a platform fee, so it is free for people to start a campaign. The company asks donors to leave a tip after making a donation.

GoFundMe encourages users to set goals higher than needed to account for the fees. This is a smart move, as it helps ensure the campaign reaches its target amount.

GoFundMe has raised $1.2 billion from its campaigns to date, and it's been growing at an impressive rate of 300% year over year. This rapid growth has attracted the attention of investors, who are eager to support the company's expansion.

The company has brought on venture capitalists to its board, including John Locke from Accel Partners, Woody Marshall from TCV, and James Slavet from Greylock. This is a significant change for GoFundMe, which was previously bootstrapped and didn't have any venture capital partners on its board.

GoFundMe has been relatively quiet about its activities compared to other crowdfunding platforms like Tilt and Indiegogo. These platforms are also focused on aid and education projects, with Tilt having raised a funding round that valued the company at $400 million.

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GoFundMe's growth has been impressive, with its rate of fundraising increasing by 300% year over year. This is a key reason why investors were attracted to the company, which has now raised $1.2 billion from its campaigns to date.

GoFundMe has already hit its target of raising $100 million in funds from campaigns every month, as of June. This is a significant milestone for the company, which is now valued at $500 million after its recent funding round.

Kickstarter is the leading competitor to GoFundMe, with a revenue of $77.9M and 472 employees, representing a 15% employee growth rate.

JustGiving has a revenue of $19.4M and 134 employees, with a 2% employee growth rate.

Fundly's revenue is significantly lower at $0.5M, with only 15 employees and no employee growth.

Venmo's revenue is substantial at $247.2M, but it's worth noting that it's not primarily a fundraising platform.

Patreon's revenue is $202.6M, with 977 employees and an 8% employee growth rate.

PayPal's revenue is a staggering $24,570M, but it's not typically used for fundraising.

Classy.org has a revenue of $90.3M, with 547 employees and a 12% employee growth rate.

Flipcause's revenue is $6.3M, with 54 employees and a 6% employee growth rate.

Indiegogo's revenue is $26M, with 186 employees and a -2% employee growth rate.

Here's a list of the top 10 competitors to GoFundMe, ranked by revenue:

GoFundMe's profitability is a notable aspect of its future prospects. They seem to be doing well financially.

The company's decision not to go public through an initial public offering (IPO) suggests they're prioritizing private growth over public funding.