GoFundMe, a charity-oriented for-profit business, probably won’t be the first place any entrepreneur hoping to turn a crowdfunding profit will go for. But it’s an interesting case study in a successful startup: It not only trounces Kickstarter right now, but it also handily beats out 135-year-old charity the Red Cross, which collected a piddling $604 million last year.
The Facts
Forbes covered GoFundMe in their November 8, 2016 issue, and you can read it on their site now. Here’s the relevant data from the profile: This might come as a shock to some, as Kickstarter still retains its reputation as the original crowdfunding site.
The Future
GoFundMe predicts their hectic growth will continue, of course. It’s the startup way to constantly keep aiming for ridiculous growth, and GoFundMe’s goal of between $5 billion and $7 billion annually by 2020 fits the bill. The team is just 165 people, each averaging $606,000 in revenue. One interesting data point: “GoFundMe’s biggest category is medical expenses, which accounted for $400 million of the $1.5 billion raised in the past year.” Perhaps any enterprising entrepreneurs should examine the medical field for a service to disrupt.
