Social Fund-raising Website GoFundMe Buys Detroit Rival CrowdRise
GoFundMe, the Redwood City, CA-based fund-raising platform for charities and nonprofits, has acquired CrowdRise, a Detroit, MI-based rival founded by entrepreneurs Robert Wolfe and Jeffrey Wolfe, and Hollywood philanthropists Edward Norton and Shauna Robertson.
Financial terms were not disclosed in a statement issued Tuesday by GoFundMe.
Brad Damphousse and Andy Ballester founded GoFundMe in San Diego in 2010. They departed in 2015, after selling a majority stake to an investor group led by Accel and Technology Crossover Ventures that reportedly valued GoFundMe at $600 million. The company moved its headquarters to Redwood City when former Groupon chief operating officer Rob Solomon took over as CEO.
In the years since it started, at least 25 million donors have channeled donations of more than $3 billion through GoFundMe’s online platform.
CrowdRise, also founded in 2010, has raised over $500 million for nonprofit organizations and charities. The platform has over 1 million individual members and works with 20,000 charities.
CrowdRise has become the fund-raising platform for many of the country’s top endurance events, including the Boston Marathon, New York City Marathon, Chicago Marathon, Ironman, and Tough Mudder, along with thousands of smaller events. CrowdRise also serves as the online fund-raising platform for the American Cancer Society, the American Red Cross, UNICEF, WE Charity, and other large global organizations.
“There is a perfect synergy between GoFundMe’s brand of person-to-person social fund-raising and CrowdRise’s expertise in fund-raising for charities through peer-to-peer, race events, and corporate campaigns,” Solomon said in the prepared statement. “GoFundMe aims to be the giving layer of the Internet. By joining forces with CrowdRise, we can offer both people and organizations the right fund-raising strategy for any sort of cause they care passionately about.”