FundraisingPublished 2019-02-07 · founder reported
Choose a cost structure the business can actually support
How Gumroad approached fundraising.
What they did
Lavingia described reducing Gumroad’s team and expenses when growth could not support another venture round. The company focused on keeping creators paid and reaching profitability.
Reported outcome
The retrospective reported a $10,000 monthly net profit in June 2016 after a loss in June 2015. These are historical monthly figures, not current performance.
An idea to test, from Afterlaunch
A useful product and a venture-scale growth path are separate questions; financing expectations affect operating choices.
Small experiment: Model a sustainable operating plan from current gross profit and compare it with your fundraising-dependent plan.
A company’s reported outcome doesn’t prove one tactic caused it. Treat this as a hypothesis.
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