We have covered Gumroad in the past as one of the Top 10 Best Ways to Sell Digital Goods Online, the company is the clear frontrunner for selling your products online, since it’s designed particularly for creative people to sell their digital products. You can sell your music, comic books, software and more.
The San Francisco based startup company has been forced to lay of a large number of staff members in an effort to run more smoothly. According to TechCrunch however, the CEO denies that the company is going out of business.
The company made headlines when they quickly raised $8 million in the course of a few months, however the rapid growth didn't last for long as the company has been having a hard time establishing a business for themselves. According to CEO Lavingia the company will continue to operate as it has so far, and that laying off people was one of the toughest decisions he has ever had to make.
The biggest problem for Gumroad is the fact that they just haven't been able to grow fast enough, and this has now forced them to reduce their staff from 22 to somewhere as low as 3 staff members. But the CEO is reassuring investors that this is not the end for the company.
It will be interesting to see where it goes from here, what do you thin? Is the company in trouble or will they bounce back?