Proof that you can successfully build and exit a startup exit without raising massive amounts of capital. The two founders of the crowdfunding site GoFundMe are relinquishing control and reaping a fortune by selling a majority stake worth more than $600m. The founders are selling the controlling position to an investor group led by Accel Partners and Technology Crossover Ventures.
The deal, which is expected to close within two weeks, will value the San Diego company at around $600 million, according to a person familiar with the matter. Other investors include Greylock Partners, Iconiq Capital, Meritech Capital Partners and Stripes Group. The syndicate is installing a group of Internet veterans to run GoFundMe. The transaction will be a windfall for Damphousse, 33, and Ballester, 34, who started GoFundMe in 2010 as a way to help individuals and small charities raise money for good causes. The pair had resisted seeking capital on their own. Instead, they funded the company with GoFundMe’s revenue, which comes from charging 5% in fees per transaction. GoFundMe is profitable and has made roughly $60 million in total revenue over the five years since the site launched. Its members now raise about $100 million in donations/month.