GoFundMe’s Valuation Rises To Around $600M-$650M In Latest Funding Round
TECHCRUNCH: Our sources have given us some additional information since crowdfunding site GoFundMe confirmed its funding round last week, saying that the company is now valued at around a range of $600 million to $650 million.
We’ve also heard that Iconiq Capital, the firm that manages the personal wealth of executives like Mark Zuckerberg, has participated in this round of funding. At the time, it was confirmed that Accel partners and Technology Crossover Ventures led the round, with Greylock and Meritech Capital Partners participating.
We previously reported that GoFundMe’s latest funding round valued the company at around $500 million — though, also at the time, one of our sources said that the valuation could go beyond that. The company seeks to focus more on aid and education, based on many of the campaigns that are seen on its site. Most recently GoFundMe ran a string of campaigns centered around aid for victims of the Nepal earthquake.
At the time that the company confirmed its funding round, our sources told us it was hitting around $100 million in funds raised through campaigns every month. So, it wouldn’t be a stretch to say GoFundMe was near to, or is, the largest crowdfunding site on the Internet. The company has seen 300 percent growth year-over-year in the amount of funds it has raised every month, according to our sources.
There are other crowdfunding companies like Tilt, which TechCrunch previously reported raised at a $400 million valuation, and Indiegogo, but it seems clear that both investors and the company are interested enough to drive up demand for a stake in the company even further.
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TECHCRUNCH: It appears GoFundMe’s founders have decided it’s time to cash out. The company’s cofounders Brad Damphousse and Andy Ballester told the Wall Street Journal today that the pair have decided to sell a controlling stake to the investor group that is leading its latest financing round. TechCrunch previously broke the news of the financing round, as well as the company’s valuation rising to between $600 million and $650 million before finally closing.
That kind of sale for the company, which was previously bootstrapped, obviously represents a large return for its founders — and likely early employees. It’s also not the only crowdfunding company that has raised at a high valuation, with Tilt raising a financing round at a $400 million valuation, as previously reported by TechCrunch. As part of the deal, the investors will “a group of Internet veterans to run GoFundMe,” according to the Journal report.
The Journal reports that the final valuation for the company in its financing round, which is being led by Accel Partners and Technology Crossover Ventures, is $600 million. TechCrunch previously also reported that Iconiq Capital, which handles the finances of executives like Mark Zuckerberg, participated in the latest funding round.
Our sources told us at the time of the report that GoFundMe it was hitting around $100 million in funds raised through campaigns every month, making it one of the largest crowdfunding sites on the Internet (if not thelargest). The company has seen 300 percent growth year-over-year in the amount of funds it has raised every month, according to our sources.