LTK Valuation Reaches $2 Billion After $300M SoftBank Investment

The Evolution of LTK: From Fashion Blog to $2 Billion Enterprise

In 2011, when LTK was first established, terms like “influencer marketing” and “the creator economy” were not yet widely used. However, Amber Venz Box, a fashion blogger, encountered challenges similar to those faced by online personalities today.

Addressing the Core Challenge for Creators

A central question arose: how can the significant time invested in content creation – writing posts, capturing photos, editing videos, and cultivating an audience – be transformed into a sustainable career?

LTK's Origins and Growth

Amber Venz Box initiated LTK with the goal of earning commissions from readers who purchased products she endorsed. A decade later, this initiative has blossomed into a $2 billion company.

Formerly known as RewardStyle and LIKEtoKNOW.it, LTK facilitates shoppable posts for social media influencers. It also provides a centralized marketplace accessible via web and mobile app.

The platform allows brands to connect with creators for future marketing initiatives. This substantial valuation was achieved following a $300 million investment from SoftBank’s Vision Fund.

A Thriving Ecosystem

LTK serves three key groups: creators, brands, and shoppers. Collectively, these users spend over $3 billion annually on the platform.

The user interface shares similarities with Instagram Shop, offering a scrollable feed of creator-curated products. Notably, LTK pioneered this approach before Instagram’s expansion into e-commerce.

The company has maintained profitability for several years and intends to utilize the new funding to expand its international presence and increase its workforce.

Global Reach and Impact

Currently, LTK employs a global team of 350 individuals, collaborating with 5,000 retailers and over 1 million brands.

SoftBank's Perspective

“We believe LTK is helping to reimagine the concept of entrepreneurship by enabling people to make a living out of their hobbies and passions,” stated Angela Du, Investment Director at SoftBank Investment Advisers.

Ms. Du, who will join LTK’s board of directors, further emphasized the platform’s ability to empower creators to build strong brands and cultivate genuine connections with their audience.

The Rise of Recommendation-Based Shopping

The success of LTK underscores the growing consumer preference for shopping based on recommendations from trusted sources.

According to Forbes, over 130 influencers have achieved millionaire status through LTK. The majority of these creators, predominantly women, earn commissions ranging from 10% to 25% of sales.

LTK's Revenue Model

Brands and retailers determine their own commission rates. LTK generates revenue by charging a transaction fee on each sale facilitated through the platform.

Brands benefit from increased sales driven by creator endorsements, while creators are rewarded with a commission for their influence.