Mike Abbott is joining the board. CrunchFund, Raymond Tonsing, and all of Gumroad's initial seed investors also joined the round.
While not just about selling music, Brendan Benson, Martin Sexton, and MNDR have all run release campaigns using Gumroad to sell direct to fans.
Right now Gumroad has just three employees. They'll use the money raised to grow the team to 10 or 12 by the end of 2012. The financing will also allow the company to move out of the 19 year old founder's house and into an office. Here's how Gumroad works:
