Thursday, November 18th, 2010
I was on an interesting conference call by Arcstone Equity Research & SharesPost in which they walked through the Web business Etsy.
New York-based Etsy is clearly a company on the move.
What Is Etsy?
The gist of Etsy’s business is that they’re a marketplace of hand-made goods (sort of eBay but primarily hand-made)…here’s a screen shot showing you some of the types of things they sell.
Disclaimers: The #s I mention are not from Etsy (they are all estimates based on Arcstone Equity Research & SharesPost)
Special thanks to Arcstone & SharesPost for all the graphs below:
Etsy’s Growing As Fast As Alibaba (But Not As Fast As eBay)
Etsy Business Model
- Taking 3.5% of every sale and $.20 per item for a listing fee
- Selling advertising (where they make about half their money)
Etsy Revenues, Profits, etc.
- Estimated Valuation: $258 Million
- Estimated Revenue
- $16M in 2009 ($180 million in gross transaction values)
- $30M in 2010 (on $335 million in gross transaction values)
- Around $54M is projected in 2011
- 120 employees
- Robert Kalin
- Chad Dickson (Yahoo)
- Alan Freed (Google)
Outside Board Members
- Jim Breyer
- Fred Wilson
- Caterina Fake
Some sites like Etsy are:
- eBay (both through its own service and through acquisition of World of Good)
- DaWanda (in England, France & Germany)
- 1000 Markets
Etsy Financing To Date
Other Etsy Highlights
- 4.4 Million members
- Hired a new COO (Alan Freed) from Google last year who has an emphasis on International
- 2 million of 5 million products are Jewelry
- $258 Million (10X Annual Revenues (discounted 15% for lack of marketability))
My Take On Etsy
Fascinating Internet business on the move…a real niche dominator.
My best guess as to what will happen with Etsy: They will go public or be acquired by Amazon (Amazon loves to take out companies when they’re in the $100 million to $500 million per year revenue and if they own a niche).