Daniel Vassallo
@dvassallo United States205K followers
Ex-Amazon engineer who popularized the small bets portfolio approach
Small Bets, Userbase, Single Server +1$210K profit in 9 months
exit story · 2025 · community builders
How Daniel Vassallo Sold Small Bets to Gumroad (2025)
Small Bets was built by Daniel Vassallo and sold to Gumroad in 2025 for $3.6M for 90% (half cash, half stock options; self-reported). At the time of the sale it made ~$500K profit in 2024 (self-reported).
Key facts
- Buyer
- Gumroad ↗
- Year
- 2025
- Price
- $3.6M for 90% (half cash, half stock options; self-reported)
- Revenue at sale
- ~$500K profit in 2024 (self-reported)
- Years operated
- 4 years
- Channel
- Direct sale
Why they sold: Daniel Vassallo framed it as a strategic fit: Gumroad wanted to offer creators more than payment processing, and Small Bets would serve as a testing ground for a community that helps entrepreneurs.
The story of Small Bets
Small Bets is a paid community and set of expert-led classes for small-time entrepreneurs, built by former AWS engineer Daniel Vassallo after his info products found an audience on Twitter.
Gumroad had already bought a 10% stake for $500K the year before. In April 2025 Vassallo announced it was buying the remaining 90% for $3.6M, valuing the business at $4M. He said Small Bets made almost $500K in profit in 2024, putting the price at about 8x trailing profit.
The deal was paid half in cash, in two instalments, and half in stock options vesting over five years. Vassallo stayed on to run Small Bets as an autonomous Gumroad subsidiary.
Lessons Daniel Vassallo shared
- 1.Vassallo said he never expected a community business to be sellable at all.
- 2.He emphasised that hands-on support from people can add value beyond what software alone provides.
Paraphrased from the maker's public posts and interviews (see sources).
The maker
See the Small Bets product page or Daniel Vassallo's full profile for everything they have built since.
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Sources
Facts are taken from the maker's and buyer's public statements and press coverage. Prices and revenue are shown only when publicly stated; self-reported figures are not independently verified.
Keep exploring
Small Bets acquisition FAQ
Who bought Small Bets?
Small Bets was acquired by Gumroad in 2025 from Daniel Vassallo.
How much did Small Bets sell for?
Small Bets sold for $3.6M for 90% (half cash, half stock options; self-reported), as publicly stated. At the time of the sale it made ~$500K profit in 2024 (self-reported).
Why did Daniel Vassallo sell Small Bets?
Daniel Vassallo framed it as a strategic fit: Gumroad wanted to offer creators more than payment processing, and Small Bets would serve as a testing ground for a community that helps entrepreneurs.
How long did it take Small Bets to get acquired?
Small Bets was sold about 4 years after launch, through a direct sale (sold directly to a buyer, often a competitor, customer or acquirer that reached out).
What did Daniel Vassallo learn from selling Small Bets?
Vassallo said he never expected a community business to be sellable at all. He emphasised that hands-on support from people can add value beyond what software alone provides.