The current plan is to raise another $5M from the general public at a $250M valuation on March 15, 2022.
Because there's more demand from accredited investors today, I am raising up to $2.5M at that valuation now, allowing me to be more aggressive with hiring and marketing, and aim at a higher valuation in 2022 instead.
To do so, I will use AngelList's new RUV feature, allowing me to raise from up to 250 accredited investors.
(The RUV will also come with a 20% discount.)
Gumroad annual revenue is >$12M. We grew 87% last year, and 40% the year before that.
If we grow at 40% year-over-year:
I raised at a conservative multiple of 8.5x revenues, and had a $1K max check size to give 7,300 people (including our top creators) a good return and make crowdfunding a thing sooner. People were limited to writing $1K checks, so it's not like anyone got in at that price at a significant level for them.
Watch the Q1 2021 board meeting for a recap.