GoFundMe is an American for-profit crowdfunding platform that allows people to raise money for events like from life events to challenging circumstances. GoFundMe is a free platform for personal campaigns in the United States, Canada, the United Kingdom, Australia, France, Germany, Ireland, Italy, the Netherlands, and Spain. GoFundMe is created by Brad Damphousse and Andrew Ballester and is launched on 10 May 2010. The headquarters of GoFundMe is in Redwood City, California, U.S. with offices in San Diego and Dublin, and with operations in France, Spain, Germany, Italy, and the United Kingdom.
Index:
How GoFundMe works?
There are some steps you need to follow to figure it out how it works,
- Start your fundraiser: For fundraising, you first have to set your fundraiser goal by telling your story and by also adding pictures or videos, with this you can show the world for what you are collecting funds for and making them feel secure for whom they are donating money.
- Share with your friends: For letting many know about your fundraiser you need to share your story with maximum people and for that you can share it on different platforms like by sending emails, sending text messages and you can also share it on social media like Instagram, Facebook, Twitter, etc.
- Manage donations: As you will follow all these steps you can get donations that you have to accept and later thank the donors to help you and then you can finally withdraw the funds.
And trust GoFundMe as it is fast and safe to use.
Business Model:
Key Partners:
The key partners of GoFundMe are Stripe to power enhanced fundraising experiences, PEOPLE also partners with GoFundMe for Covid-19 relief. Trustly also partners with GoFundMe to enhance verification of fundraiser beneficiaries.
Key Activities:
GoFundMe is a crowdfunding platform that allows users to raise money for a wider variety of personal causes which may include special events, medical bills, and even for animals. As per the latest reports and analysis for the company, GoFundMe has helped millions of people to raise more than $5 billion by 2020.
Key Resources:
GoFundMe has fundraisers meet and beat their goals using their unique fundraising tips. The resources of GoFundMe are the family, friends, and followers of people who are fundraising and then there are many investors who invest in the fundraising.
Value propositions:
The value propositions of GoFundMe are the total sum of what the customers get for what the customer pays. GoFundMe utilizes the human need to help others and offers a way to and for donors to contribute even the most donations to compelling stories and causes.
Customer Relationship:
GoFundMe is a crowd rise and crowdfunds which manages the entire customer experience in a single place. GoFundMe is an NPO that aims that its customers get all the funds they need, they help in every possible manner, and that too free. GoFundMe also creates awareness on the social platform so that more and more knowledge about this and could get help if needed.
Customer Segments:
GoFundMe’s target market is the people who need help or fundraising for special events, medical bills or emergencies, education, and for animals. GoFundMe through its website really wants to help all individuals or organizations.
Channels:
GoFundMe reaches its customers through social platforms, bloggers, and TV stations. GoFundMe wanted its customers to know everything about this company as they wanted to do something for them.
Cost Structure:
GoFundMe is free of cost company as there is a 0% platform fee and only an industry-standard payment processing fee of 1.9% + $0.30 per donation is needed. Donors have the option to tip the money to GoFundMe Charity to support the business. If a charity receives a donation of $100, then the net they will get is $97.80.
Revenue Streams:
GoFundMe makes money by charging users a fee for every donation they receive from the fundraising and these are called platform and transaction fees. Besides this, the company generates money from donations that users can make directly towards the platform. The revenue of the company is $85 million according to a website, as the company has been extremely secretive in disclosing revenue figures to the public.
Valuation, expenses, and revenue:
GoFundMe is valued at around $600 million. GoFundMe is secretive regarding its revenue figures but according to a website, the revenue of the company is $85 million. Now, let us see the graph of revenue figures quarterly:
Investor’s Details:
The investors of GoFundMe are Greylock, Accel, TCV, ICONIQ Capital, Meritech Capital Partners, Stripes etc.
Competitors:
- Indiegogo
- Pozible
- JustGiving
- Crowd Supply
SWOT Analysis
Strength:
- The geographic presence in different regions globally can act as one of the major strengths of GoFundMe.
- The wide product portfolio of GoFundMe allows the organization to expand the customer base and offset the losses from one product category with benefits obtained from the other category.
- High product quality increases the brand loyalty of GoFundMe and improves the Giving Layer of the Internet’s performance in a competitive market.
Weakness:
- GoFundMe can draw criticism from the environmentalists for its poor waste management practices and the inability to merge sustainability in business operations.
- The cash shortage or insufficient current assets in the organization negatively affect the liquidity position and harms the overall business performance.
Opportunities:
- The exponential growth in the population globally and especially in the existing or potential customer segments is a great growth opportunity for the business organization.
- The change in the customers’ needs, tastes, and preferences can act as an opportunity if the business organization has good market knowledge.
- The subsidies that are provided by the government and other policies to make the business environment more amiably is a positive external environmental factor for GoFundMe.
Threats:
- The increasing number of direct and/or indirect competitors affects the organization’s ability to sustain, grow and expand the customer base.
- The rise in inflation directly increases the cost of production and therefore affects the business profitability.
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What is GoFundMe?
GoFundMe is an American for-profit crowdfunding platform that allows people to raise money for events like from life events to challenging circumstances. GoFundMe is a free platform for personal campaigns in the United States, Canada, the United Kingdom, Australia, France, Germany, Ireland, Italy, the Netherlands, and Spain.
Who founded GoFundMe?
GoFundMe is created by Brad Damphousse and Andrew Ballester and is launched on 10 May 2010. The headquarters of GoFundMe is in Redwood City, California, U.S. with offices in San Diego and Dublin, and with operations in France, Spain, Germany, Italy, and the United Kingdom.