Gumroad, found by Sahil Lavingia in 2011, is an online platform that enables and simplifies direct artefact sales from creators to consumers. Sahil’s intention was to simplify and make selling for artists and creative minds as easy as social sharing. Its launch created an easy outlet for writers, graphic designers, software developers, musicians, educators, filmmakers, and any and every one in-between.
Sahil, when a mere stripling, had a mobile App icon designed for an App which he never ended up building and wanted to sell the design. He was perplexed with the available choices as most marketplaces catered in selling physical goods, there was nothing for creative, literary or digital works. He was hoping for an app store alike platform to upload his digital file for sale and share it via social media platforms. He instantly identified the void and realized others shared the same dilemma. He just got to work and basically conceptualized and created Gumroad.
Gumroad raised USD 1.1 million in the angel round and thereafter raised USD 7.0 million from Kleiner Perkins. It soon became THE tool for creative and literally geniuses to facilitate and sell their digital works, e-books, illustrations, etc. While it witnessed tenfold growth initially, it simmered down soon after which deterred additional investors with higher expectations from contributing during fund-raising rounds.
As per Sahil’s tweet in September 2020, Gumroad reported a revenue of USD 829K (77% year/year growth) and USD ~60K in profits which renders to annual revenue of USD 10 million with USD 0.7 million in profit. Though Gumroad didn’t make desired headlines potential investors were hoping for, it definitely filled the void and created a difference, a marketplace for artists, singers, writers, alike to sell their work.
Typically, if a startup does not soar in Silicon Valley the investors want to hive-off the business and encourage the promoter to start a new venture which they would then invest their time and money in. However, Sahil is determined and committed to Gumroad’s future and thus make the platform available for the creative adept.
