Since its launch in 2008, the crowdfunding startup GoFundMe has been a bootstrapped operation. It seems that may be about to change, according to sources who spoke to TechCrunch.
Sources further noted that one potential equity funder could be Accel Partners, who is rumored to be leading the round. The valuation being targeted is reportedly around $500 million, though that might just be a baseline figure that could grow.
GoFundMe campaigns are often, but not always, centered around aid and education projects, as opposed to other crowdfunding hubs that tend to attract product- and event-focused funding opportunities. Tilt, an Andreessen-Horowitz backed crowdfunding startup, and IndieGogo are competing on the same field – and both competitor companies have raised venture financing, while GoFundMe has eschewed it.
Despite lack of previous funding rounds pursued, most are not terribly surprised by a high valuation for GoFundMe, as sources indicate the firm is “very profitable.” Then again, those sources do work for a company that is trying to motivate equity investment at the moment, so it seems unlikely they would tell a reporter that they were anything but “very profitable.”
GoFundMe has made no official statements on the potential acquisition at this time and has rejected requests for an interview.