TechCrunch is hearing from a few sources that GoFundMe, a crowdfunding and fundraising startup, is seeking venture financing after bootstrapping the company since 2008.
According to those sources, Accel Partners is in the mix, and one says they may be leading the round. Sources said the valuation is around $500 million, though one source said the valuation could that go beyond that. Sources said the deal has not closed yet, so as usual things could certainly change through the end of the funding process.
In contrast to some product- and event-focused crowdfunding sites, GoFundMe sees many campaigns centered around aid and education projects. It’s an area where Tilt, an Andreessen-Horowitz backed crowdfunding startup, and Indiegogo are both active. Both companies have raised venture financing, while GoFundMe has largely flown under the radar.
But that GoFundMe can raise money, and at such a high valuation, is somewhat indicative of how venture capital firms are aggressively trying to fund companies in new sectors. In logistics, for example, Kleiner Perkins recently led a $50 million round for Shyp, while Social+Capital and Greylock led a $45 million raise for Sprig — both of which were announced in just the last month.
Such a high valuation isn’t necessarily surprising for GoFundMe. We’ve heard from a few sources that the company is “very profitable” — of course, this could be double speak among the investor community to drive additional interest in the round.
A representative from GoFundMe did not respond to a request for comment on the specific numbers by time of publication.