ntwrk Raises $50M for Livestream Shopping - Goldman Sachs & Kering

NTWRK Secures $50 Million in Funding to Expand Livestream Commerce

NTWRK, a pioneering video shopping application instrumental in popularizing livestreamed retail within the United States, has announced the successful completion of a $50 million funding round. This investment was spearheaded by Goldman Sachs Asset Management and Kering, a prominent global luxury conglomerate encompassing brands such as Gucci, Yves Saint Laurent, and Bottega Veneta.

Capitalizing on Live Commerce and Creator Content

The company has been strategically positioned to benefit from the increasing consumer interest in both live commerce and content created by influencers. Responding to the challenges presented by the COVID-19 pandemic last year, NTWRK transitioned its focus to live virtual events and festivals.

Now, the company intends to utilize these funds to accelerate its expansion and establish a stronger international presence.

Investment Details and New Board Member

LionTree Partners and Tenere Capital also participated in this latest funding round. They join existing investors including Main Street Advisors – whose portfolio includes notable figures like Jimmy Iovine, Drake, and LeBron James – alongside Live Nation, Foot Locker, and others.

Allison Berardo, a Vice President within Growth Equity at Goldman Sachs Asset Management, will assume a position on NTWRK’s board of directors.

Targeting Gen Z and Millennial Consumers

NTWRK specifically caters to a younger demographic, namely Gen Z and millennial consumers. The platform provides creators with the tools necessary to engage with viewers and facilitate real-time product sales.

This innovative approach has been described as a fusion of QVC, Twitter, and Twitch, blending commerce with entertainment.

Exclusive Content and High-Profile Hosts

Viewers can watch, chat, and shop simultaneously for items like streetwear, footwear, collectibles, and more. NTWRK has also developed its own exclusive content, featuring prominent personalities such as Billie Eilish, Juice WRLD, DJ Khaled, Odell Beckham Jr., Eddie Huang, Blake Griffin, Alexander Wang, FaZe Clan, Nadeshot, Jonah Hill, Gary Vee, A$AP Ferg, Wu-Tang Clan, and Doja Cat.

Notably, the company previously invested in FaZe Clan.

Product Drops and Anticipation Building

Beyond standard live shopping streams, NTWRK utilizes a model centered around regular product drops designed to generate anticipation and excitement. This strategy, previously uncommon, is now being adopted by larger social media platforms like Instagram, which recently introduced its own drops feature.

Expansion into Live Events and Virtual Festivals

NTWRK has also embraced live events and virtual festivals as a means of audience engagement. Last year’s TRANSFER event showcased 30 brands and artists, featuring panels, interviews, DJ sets, and musical performances.

The company also hosted BEYOND THE STREETS, a virtual art fair that attracted over 250,000 attendees.

Earlier this year, Unboxed, a festival dedicated to designer toys and collectibles, marked the beginning of a series of digital events, including Surface Festival (a virtual food festival) and a virtual home goods festival. The return of TRANSFER, its flagship event, is currently being prepared.

Entering the Digital Goods Market with NTWRK NFT

This summer, NTWRK expanded into the realm of digital assets with the launch of NTWRK NFT, a curated marketplace for unique crypto art created by artists like BADBOI, Imaginary Foundation, MILKMAN, Young & Sick, Fafi, KidEight, MGOGLKTKO, and Eddie Gangland.

Livestream Shopping Growth and Market Potential

While already popular internationally, livestream shopping is experiencing increasing adoption in the U.S. The company highlighted that livestream shopping in China reached $150 billion in 2020 and is projected to reach $300 billion this year.

In the U.S., the market is expected to grow to $11 billion by the end of 2021 and $25 billion by 2025, indicating substantial growth potential.

Future Vision and Strategic Partnerships

“Our vision is to become the biggest, most culturally relevant, livestream shopping marketplace for Gen-Z and Millennial audiences who are obsessed with pop culture,” stated NTWRK CEO Aaron Levant. “It’s exciting for NTWRK to have Goldman Sachs and Kering sign on for the future of livestream shopping.”

According to Crunchbase data, NTWRK had previously secured $10 million in Series A funding.