Across the United States, hand made jewelry is a surprising huge business. Whether the term refers to leather bracelets or hand crafted necklaces, consumers have found that hand made is the best source of unique jewelry pieces and other accessories. Moreover, many retailers are willing to make custom jewelry, an attractive option for people who are allergic to certain metals or simply have precise tastes. Because of this, websites like Etsy have become extremely popular in recent years. Established in 2005, this virtual marketplace features thousands of independent artists and retailers, making it one of the best places to buy hand made or custom jewelry online. Now, the site is planning to market on this success by establishing itself as a public company.
According to Bloomberg Business, Etsy is currently trying to raise $300 million through an initial public offering (IPO), which could establish the website as a public company as early as this quarter. If they are successful in raising these funds, they would become the biggest New York startup to create an IPO in more than ten years.
Experts speculate that Etsy has been planning this move for some time: in June, for example, the company hired an employee from jewelry company Pandora to help them improve their mobile presence, raising questions about a possible IPO. However, Etsy has been an attractive option for some time: the company has turned a profit every year since 2009 by requiring retailers who use their sit to pay $.20 to list items for sale, and then pay back 3.5% of every item they sell. Similar to eBay’s method, this process is quite effective: in 2013, the website grossed $1.35 billion in sales, and there are more than 26 million listings currently on the site. Moreover, 1 million sellers actively use Etsy to sell their hand made jewelry and other crafts.
If they establish an IPO, Etsy will compete with companies like Pandora, LinkedIn and Twitter, which recently followed a similar path. Additionally, if they are successful, other startups like Gilt and Fab.com could follow suit. Etsy is currently working with Morgan Stanley and Goldman Sachs to create their IPO, but the price per share of their stock is currently unknown. Links like this.
