The Rise of Used Photography Equipment Marketplaces

Online marketplaces for used goods have become increasingly popular, particularly since the start of the COVID-19 pandemic. These platforms offer individuals a means to declutter and generate income from unwanted items, while simultaneously providing buyers with affordable options during times of economic uncertainty.

MPB Secures Significant Funding

MPB, a leading marketplace specializing in used cameras and photographic equipment, has recently announced a substantial funding round. The company has seen its platform facilitate the circulation of approximately 300,000 items annually and has surpassed £100 million ($139 million) in revenue this year.

The Brighton, England-based startup has secured £49.8 million (roughly $69 million) in funding. These funds will be allocated to expanding into new markets, including its existing offices in Brooklyn and Berlin, and broadening its product offerings to cater to content creators.

Investment Details

This Series D funding round is spearheaded by Vitruvian Partners, with notable participation from Acton Capital, Mobeus Equity Partners, Beringea, and FJ Labs. Vitruvian Partners is a new investor in MPB, while the remaining firms had previously invested in the company, bringing the total raised since 2011 to approximately $91 million.

The company has not yet publicly disclosed its valuation, but further details are anticipated.

Brighton's Tech Scene Gains Momentum

This funding represents the largest investment ever received by a startup based in Brighton. While Brighton boasts a growing tech sector, fueled by its proximity to universities and a thriving gaming community, it has historically remained somewhat under the radar for venture capital investment, potentially due to its location near London.

PitchBook estimated MPB’s valuation at $50.86 million in 2019, suggesting a significant increase in value since then.

MPB's Vision for the Future

“This funding round is a major milestone for MPB, culminating a decade of strong performance and a vision to make great kit accessible and affordable,” stated Matt Barker, MPB’s founder and CEO. “With the backing of Vitruvian Partners and those reinvesting in our business, we can accelerate our US and European growth strategy at scale, profitably.”

Barker further emphasized the importance of photography and videography in global cultures and MPB’s commitment to a circular economy model that empowers visual storytellers while minimizing environmental impact.

Addressing Key Trends in E-commerce

MPB’s success can be attributed to its ability to capitalize on several emerging trends within the e-commerce landscape and broader digital society.

The platform provides a dedicated space for buying and selling used camera equipment, offering sellers a revenue stream and buyers cost-effective options. This model also promotes sustainability by extending the lifespan of electronics and reducing waste.

Building Trust and Security

Traditionally, purchasing used goods has been associated with a lack of guarantees. MPB addresses this concern by employing a team to thoroughly inspect and prepare items for sale, and by offering a six-month warranty on all products sold through its platform.

This commitment to quality and security has contributed to the company’s impressive compound growth rate of 53% over the past five years.

The used goods marketplace sector is currently attracting significant attention from venture capitalists, as evidenced by recent investments in companies like Wallapop and Vestiaire Collective.

The Power of Niche Communities

MPB’s focus on a specific interest – photography – fosters a sense of authenticity and community. This specialized approach differentiates it from more general marketplaces like eBay, allowing for greater attention to product quality and a more engaged user base.

The Rise of the Creator Economy

The growth of the “creator economy” – where individuals monetize their creative output – is another key factor driving MPB’s success. The demand for high-quality equipment for capturing images and videos is increasing as more people pursue independent content creation.

However, the increasing sophistication of smartphone cameras presents a potential challenge, as they continue to encroach on the market share of traditional cameras.

Strategic Partnership with Vitruvian Partners

Vitruvian Partners, an investor in other successful marketplaces like Vestiaire Collective and Carwow, will serve as a valuable partner for MPB as it scales its operations.

“MPB has developed a unique tech-enabled platform to meet a market need, transforming access to photography kit to become a global leader in its field, whilst building a product that genuinely has a positive impact on the world,” said Tom Studd, partner at Vitruvian Partners.

Sebastian Wossagk, managing partner at Acton Capital, added, “It’s always a privilege to watch companies like MPB grow and excel in their field. Matt and his team have already taken the first steps into internationalisation by opening locations in Brooklyn and Berlin, and we’re excited to support them as they pursue further expansion in both the US and Europe.”

Competition and Future Opportunities

MPB’s founder, Matt Barker, initially established the company due to a perceived lack of adequate service for the photography community on general sales platforms like eBay and Gumtree.

While these platforms and others continue to operate in the used-photography equipment market, MPB’s specialized approach presents opportunities for consolidation, innovation, and increased competition.

The market remains dynamic, with numerous players vying for market share, suggesting continued growth and evolution within the industry.