Gumroad’s 19 Year Old Founder Raises $8.1 Million For Music eCommerce
Gumroad wants to empower musicians, in fact everyone, to “sell” as easily as they "share"; and so far its 19 year old founder has raised $8.1 million to make his goal a reality. After angel funding og $1.1 million in February, Sahil Lavingia – already an ex-member of the Pinterest team – just landed another $7 million in Series A round led by Kleiner Perkins Caufield & Byers.
Mike Abbott is joining the board. CrunchFund, Raymond Tonsing, and all of Gumroad's initial seed investors also joined the round.
Gumroad turns any link – including on Facebook, Twitter, etc – into a dead simple transaction opportunity. The digital content must be priced between $1 and $1000, and the company charges 5% + 25¢ of each transaction.
While not just about selling music, Brendan Benson, Martin Sexton, and MNDR have all run release campaigns using Gumroad to sell direct to fans.
Right now Gumroad has just three employees. They'll use the money raised to grow the team to 10 or 12 by the end of 2012. The financing will also allow the company to move out of the 19 year old founder's house and into an office. Here's how Gumroad works: