Etsy just announced in the Storque that they have accepted a $27 million investment. What does that mean? Says Rob:"This means that we now have the resources to extend Etsy's reach in this world, to enable so many more people to make a living making things. We want Etsy to exist for hundreds of years. Our goal is for Etsy to be an independent, publicly traded company, focused on all things handmade. Throughout Etsy's growth, we have been very careful when raising money. We run the company as a democracy, meaning no one party has the power to act unilaterally. This new investment preserves these values, and adds to what we can do."
What else does it mean? Etsy will be able to grow...big time. Aside from wanting to add lots of features for buyers and seller, they've been wanting to expand European sales, but only support US dollars. This will help them overcome that. They will also be able to support more languages.
Another interesting point to look at is the current economic climate. As the article points out, some people are running businesses from their Etsy shops. Pre-investment, Etsy ran off fees collected. With sales of just about everything dropping, one could assume that the handmade market will be no different. Seeking and accepting an investment is a survival tactic on Etsy's part. If Etsy chugs through the recession, then presumably so will the indie shops and their owners.
But if this sounds like selling out, then maybe it is. We'd be interested to hear your thoughts on the Etsy investment and you can be sure we'll be keeping our ears to the ground in the forums. Rob has a promised a town hall and it will no doubt be a big one.
Go read the whole article here. For other reports check out CNET and TechCrunch.
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