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19 Comments

Anyone can now invest in Gumroad (not for long though!)

  1. 7

    That's really cool, but at their size, what's the value of raising $1m to $5m? Is it a flex to shoot up the valuation? Actually wondering

    1. 9

      Hire a few more folks, ship a better product faster, creators win :)

      1. 1

        Hey, not a bad idea! 😉

        Congrats on the huge raise, @sahil! I'm proud to say I'm not only a Gumroad customer, but also a Gumroad creator, and now... a Gumroad investor!

    2. 4

      I guess this is as much of a marketing plot as it is a strategy for raising money.

      If I'm invested in Gumroad, I will be way more likely to use it for my own business in the future.

      1. 1

        Get more money to speed up growth (since competition is fierce now) plus getting fans to become owners so they're more loyal + word of mouth. Win-Win-Win. Right way to go!

    3. 1

      Dunno, he's doing a live CH right now.

      I think Republic is struggling to cope with the traffic too. 🤣

  2. 4

    Because.... it worked out so well with the VCs in Round A? :)

  3. 4

    This move along with all the other people starting rolling funds is super interesting.

    For the longest time if you wanted to invest in startups, you had to a) be something of an insider or b) have quite a lot of money to throw around. If @Sahil's experiment goes as planned, I'd imagine tons of people in the tech world will largely abandon investing in stocks and invest in funds like these instead.

    1. 1

      Def! People want to diversify and they might put some into angel investing, but probably not too much since it is not liquid and is a lot riskier. We're seeing the trend for sure!

      1. 1

        yeah, it's casino money almost, be ready to lose it all and hence, use 1-10% of portfolio only (imho)

        1. 1

          Yeah haha! 10% is a lot, I say 2-3%!

          1. 1

            Depends how much you got into the bank ;)

  4. 3

    @sahil just opened up the option for anyone to invest in Gumroad.

    They have a limit of $5m, 30 minutes in and they have already raised over $1m. 👀

    1. 1

      not exactly, they had 400-600k up from insiders first and then it went live, but crossing 4.6m now as of writing, love it! :)

  5. 2

    How does investment through Republic works? Do we get quarterly benefits from the profits or we just own certain percentage of equity/shares after investment?

    1. 2

      well done mate, I got in early too, thanks to @sahil for the great opportunity :)

      1. 1

        yup, I love using Republic.co to do these investements! Great way to diversify from the usual stock :)

  6. 1

    I’m on the waitlist. Thinking aloud, is the valuation of $100m reasonable considering that their highest net profit so far is $1+m in 2020?

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