Wow! Gumroad Raises Max $5 Million Reg CF Offering in One Day on Republic

Gumroad, the very first Reg CF issuer to take advantage of the increased funding cap, has hit the maximum amount of $5 million in just one day on Republic.

This week, Reg CF saw its cap increased from $1.07 million to $5 million. Last year, the Securities and Exchange Commission (SEC)  recognized the lower funding amount was insufficient to not only sustain the industry but work for many smaller issuers. Gumroad was the first issuer to have its amended Form C appear on the SEC’s file system.

Gumroad is offering a “Crowd SAFE” with a 20% valuation discount and a valuation cap of $100 million. Thus investors receive a discount on a future priced funding round. It is interesting to note that Gumroad accepted a max amount per investor of just $1000. According to the offering page, 7697 investors have participated in the securities offering.

Gumroad is a platform that seeks to simplify the process to sell online. Since launching in 2011, creators on the platform have sold more than $390 million of products.

In 2020, Gumroad processed $143.8 million in sales from over 74,000 creators generating about $390 million in revenue. Gumroad takes 3.5% – 8.5% of each sale.

In 2020, Gumroad reported $9.2 million in net revenue and a $1.08 million net profit.

 


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