Small Bets Acquired by Gumroad for $3.6 Million

Big news in the creator economy! Daniel Vassallo‘s Small Bets has announced that his company has been acquired by Gumroad, a popular platform for creators to sell digital products.

The deal, valued at $3.6 million, is structured as 50% cash and 50% stock options, with Daniel continuing to run Small Bets for the next five years.

Danial posted on April 16th, on X, formerly known as Twitter. “Yes, I sold Small Bets. I’m going to keep running it myself, but Gumroad is now the 100% owner. It’s a good deal for me, and it should only bring more benefits to the community.”

Despite the ownership change, Daniel emphasizes that nothing will fundamentally change for Small Bets members. He will continue to lead the community as an “autonomous subsidiary” of Gumroad. It has had 41 consecutive cash-flow positive months, and if that performance continues, I see no reason for me getting kicked out.

Gumroad aims to evolve into more than just a payment processor, with a vision of becoming a thriving community where entrepreneurs can receive comprehensive support, even beyond Gumroad’s own products, a vision that Daniel is excited to help bring to life. Their vision is to eventually turn Gumroad into a community rather than just a payment processor, where new and aspiring entrepreneurs get help starting and succeeding with whatever they want to do, even if it doesn’t involve using Gumroad’s products. He says the plan is still fuzzy, but that’s the direction. Small Bets will act as a laboratory for these ideas.

For the 6,692 lifetime members of Small Bets, this acquisition signals an opportunity for continued growth and enhanced support, leveraging the resources and expertise of the Gumroad platform, says Daniel.

Small Bets is an online community supporting entrepreneurs with advice and resources for building profitable online businesses. Gumroad wants to do more than just payments to remain a valuable business.

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