Whatnot Raises $50M for Livestream Selling of Collectibles

Whatnot: A Marketplace for Collectibles Through Livestreaming

Whatnot was created to provide a secure and verified platform for the buying and selling of collectibles, including items like Pokémon cards, sports cards, and pins.

From Static Pages to Dynamic Sales

Initially, the company envisioned a resale marketplace similar to GOAT or StockX, featuring product listings with numerous static images. However, experimentation revealed a more successful format: livestream sales.

This approach mirrors the model of channels like QVC and the Home Shopping Network, but utilizes individual users with smartphones to sell items such as Charizard cards and Yoda figures.

Rapid Growth and Funding

Whatnot was first highlighted in coverage last year. Since then, the company has secured three substantial funding rounds: $4 million in December, $20 million in March, and a further $50 million as of recently.

Although standard product pages remain available for sellers to maintain a continuous presence, livestreaming has become the dominant aspect of the platform. Co-founder Grant LaFontaine indicates that 95% of the company’s focus is currently on livestreaming, as it generates the majority of sales and user engagement.

Sports Cards Drive Sales

The introduction of sports cards to the platform in January proved highly successful, quickly becoming the top-selling category. This category now accounts for millions of dollars in monthly sales, according to the company.

Expanding Team and Security Measures

The Whatnot team has experienced significant growth. Starting with a small number of employees, the team expanded to 10 by January and currently comprises 45 full-time staff. They anticipate reaching nearly 100 employees by year-end.

Access to livestream selling is restricted to vetted and invited users. This measure helps to minimize fraud, as sellers are aware that dishonest practices could result in the loss of their livestreaming privileges and audience reach.

Investment Details

The Series B funding round was spearheaded by Anu Hariharan of Y Combinator Continuity fund, with participation from Andreessen Horowitz, Animal Capital, and various angel investors.

This investment underscores the growing potential of Whatnot’s innovative approach to the collectibles marketplace.