Gumroad, the much hyped startup created by 19-year-old Sahil Lavingia, raised $1.1 million in funding from some of Silicon Valley’s top investors including Accel Partners, Chris Sacca, Max Levchin, SV Angel, Josh Kopelman, Seth Goldstein, Naval Ravikrant, Collaborative Fund and Danny Rimer.
Before launching Gumroad, Lavingia designed both the Pinterest and Turntable apps. Gumroad aims to make the sharing of digital content dead simple, by using links that allow buyers to enter their credit card information and purchase the digital good. All you need to get started on Gumroad is the Facebook or Twitter account, then you can begin selling everything from invites to your next products to cool new Photoshop designs.
After signing up for Gumroad, users are taken to a simple page, where users can upload a file, give it a title, and set a price. Next, Gumroad creates a link that users can share that will take payments to unlock the product for sale. Gumroad also provides basic analytics to help users maximize their sales from the link.
Gumroad is a fantastic idea that is equally well executed. When I first tried Gumroad a few months ago, I am impressed by its ease-of-use and simplicity. Within three minutes of signing up for Gumroad, I had created my first link. Long-term, I believe Gumroad will be successful by taking a 5% cut and 30 cents per transaction. I also believe that Gumroad’s strategy of turning social networks in to places of commerce is incredibly smart. Overall, Gumroad has the opportunity to revolutionize e-commerce. Quite incredible for someone 19-years-old!