Daniel Vassallo, a Maltese entrepreneur based in Seattle, has sold his company, Small Bets, to Gumroad, in a deal valued at $3.6 million.
Small Bets is an online community for independent entrepreneurs, where members connect with experts, receive feedback and support on their projects while gaining visibility through a dedicated member directory.
Gumroad, by contrast, is an e-commerce platform that allows creators to sell products directly to their audience. The company had previously acquired a 10 per cent stake in Small Bets for $500,000. With the recent purchase of the remaining 90 per cent for $3.6 million, the deal implies a full company valuation of $4 million.
Mr Vassallo announced the sale via LinkedIn, noting that while he hadn’t initially planned to sell, the opportunity aligned well with the interests of all stakeholders; himself, Gumroad, and the Small Bets community.
The Maltese entrepreneur also highlighted how he will continue to run Small Bets for the next five years, while also supporting Gumroad on a part-time basis, unpaid (except for a required minimum wage).
Looking ahead, Mr Vassallo went on to point out what’s next for the future of his company.
“The goal 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 said.
Having worked as a Web Engineer for several years at Amazon, Mr Vassallo had left his lucrative position in search of entrepreneurial freedom and self-direction.
