Whatnot Raises $4M for Livestreamed Auctions & Pokémon Cards

Whatnot, a company initially covered in February, has experienced substantial growth in both its features and user base in the subsequent months. Today, the company announced it has secured $4 million in seed funding.

Initially established as a platform for the secure resale of FunkoPop vinyl figures, Whatnot has broadened its scope to include other collectible items, such as Pokémon cards, sports cards, and FiGPiNs.

The company’s development extends beyond basic buying and selling functions, incorporating a trend that gained momentum before the pandemic and has continued to expand: livestreamed video sales and auctions.

For those unfamiliar with the world of collecting, this type of sale may be a new experience, but it can be quite captivating once discovered. Particularly popular within communities like Disney pin trading, live video auctions function as described – a host initiates a livestream, notifying their collector followers of an upcoming sale. Displaying the item for sale (often rotating on a turntable for a comprehensive view of its condition), the host combines the roles of auctioneer and promoter. They must possess detailed knowledge of the item, engage with viewers in the chat, and maintain a high level of energy to encourage continued participation.

Many of these auctions currently take place on platforms like Instagram, which are not specifically designed for this purpose. Selling on these platforms requires manual follow-up with buyers, arranging payments, and accepting the risk of potential cancellations. Whatnot aims to specialize in this area and has been developing dedicated livestreaming tools. Streams are managed directly through their mobile application, along with all payment processing for sellers. Observing several random streams last night, each had viewers numbering from dozens to hundreds, actively bidding on items like Mumm-Ra Funko Pops, with users anticipating upcoming items.

Another increasingly prevalent livestreaming format on Whatnot is the “card break.” Participants contribute funds to purchase an entire box of trading card packs – frequently those no longer in production and costing several thousand dollars. Each participant receives a number corresponding to a specific pack (or packs) within the box. The host opens each pack live on stream, and its contents are awarded to the participant associated with that pack’s number.

Whatnot co-founder Logan Head describes the company’s recent growth as “explosive,” stating that features like livestreaming have enabled growth of “at least 100% month-over-month.” The Whatnot team has also expanded, currently consisting of 12 employees, and is actively recruiting engineers – necessitating this funding round. The company reports that the $4 million seed round was supported by Scribble Ventures, Operator Partners, Wonder Ventures, Y Combinator, and various angel investors.