Today, Etsy Inc. announced their IPO plan. In the public filing, Etsy plans to raise $300 million. But, the online crafts marketplace is not
a profitable company. Founded in 2005, the Brooklyn, NY based company lost $15 million in 2014. The company has 54 million active members,
and the company has to come up with a turnaround strategy fast.
For investors, the company would be appealing if it's "in the black." If the company continues to be "in the red" or unprofitable, it will be
a tech bubble mainstay. Etsy should not be another Twitter, as the popular microblogging website has yet to churn a profit. On the other hand,
Twitter's user base is geared toward a different demographic. Etsy is geared more towards females, and for the millennial (age 18-34) generation.
Finally, Etsy has an app. online. The company is requesting more users to download the app., and to buy their products from smartphones.
The website is the most “pinned” on Pinterest. Etsy is comparing itself to EBay, since Ebay was the pioneer of the online crafts marketplace
world. The last question is whether Etsy will surpass the incredible visits to their website figure, that Ebay has amassed for years.
Enjoy the picture above, it is from an MBA case study done on Etsy. When buying crafts and jewelry online, be cautious!
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