Meet Etsy a peer to peer e-commerce site that focuses on selling handmade or vintage items and supplies, making it a very unique marketplace. Many of the items on the website include art, photography, jewelry, food, bath products, toys quilts, and many more along those types of supplies.
The site was launched on June 18th in 2005, and their reasoning for choose the name Etsy, was because they wanted a nonsense word to build the brand from scratch. The company is based in Brooklyn and has generated $195 million in revenue in 2014, which was way up from 2013’s $125 million, the cash flow is there but it is still not quite profitable.
Well, now this online craft marketplace will be going public tomorrow, with its share volume at 16.7 million, pricing at $16 a share. This would give the company valuation well over $1.5 billion, which is a very high number for a company that isn’t even profitable like we mentioned above. They plan to use this boost for further investments, and $300,000 of it will go to the non profit Etsy.org, and also a portion to build out a brand new headquarters.
This IPO could be another home-run for many day traders, or quite the opposite and just a ploy to give themselves more cash to put into their pockets. Only time will tell, but it appears their service is quite genuine and appeals to a solid niche market for those that love higher quality art based goods.
Stay tuned for more information on how the company is doing.