GoFundMe Gets Undisclosed Funding Led by Accel Partners, TCV
GoFundMe, a San Diego-based crowdfunding startup, has sold a majority stake to an investor group led by Accel Partners and Technology Crossover Ventures, according to a report this morning on The Wall Street Journal’s website for tech news.
GoFundMe, which operates a website that enables individuals and charities to raise funds for tragedies and good causes, did not immediately respond to a query from Xconomy.
Hundreds of thousands of people have used GoFundMe to raise over $1.1 billion from 13 million donors for a host of charitable causes, according to the company.
For example, an account established to raise funds for the Irish students involved in a June 16 balcony collapse in Berkeley has raised more than $221,000 in just over a week. The collapse resulted in six fatalities and seven serious injuries.
According to the WSJ website, GoFundMe co-founders Brad Damphousse and Andy Ballester “are relinquishing control and reaping a fortune.” They founded GoFundMe in San Diego in 2010, and used the company’s revenue to fund its growth. GoFundMe charges 5 percent in fees per transaction, according to the WSJ website.
Accel venture partner Rob Solomon, a former Groupon COO and Yahoo executive, will be taking over as CEO. Solomon told the Journal he plans to establish a GoFundMe office in Silicon Valley.
GoFundMe revealed the deal without much detail in a June 18 blog entry that says the unspecified investment includes Greylock, Meritech Capital, and Stripes Group. According to the entry, “Their collective experience building global, world-class companies (like Airbnb, Facebook, Netflix, and Spotify) can help further elevate GoFundMe to its full potential, so that even more people can raise money online for the things that matter to them most.”
The deal, which is expected to close within two weeks, will value the San Diego company at around $600 million, according to the WSJ website.