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Valleywag
Besides hosting Etsy cofounder Rob Kalin on her TV show, we hear Martha Stewart has been "cozying up" to Kalin off camera to talk about a partnership and — a source connected to Etsy employees tells us — a possible acquisition. On Etsy, members buy and sell only handmade goods, an idea almost as suited to Martha Stewart's audience as Kalin himself. Check out the above video taken just after Kalin finished a recent segment on Stewart's show and try tell us the her demographic won't ache for more of Kalin's handcraft. It's too bad for them we doubt Etsy investors are ready to sell.
Etsy and Kalin just closed a $27 million funding round on January 31 and it's unlikely investors would be ready to flip so soon — especially considering that two Etsy investors, Flickr cofounder Caterina Fake and delicious founder Josh Schachter, were burned selling to Yahoo months too soon. "I don't think either would say "Oh, flipping to Yahoo when i did was awesome!," a source familiar with their thinking tells us.
Comments
This could actually make some sense.
Related:
[www.etsy.com]
"The poo is about 1" long, and very cute."
@Peteski:
the glitter and gold stars is what really makes it just pop
We should have turned off the internet 5 years ago.
@Alaska Miller: No bedazzle, no care.
Oh, some of those Etsy things are great, although ALL of the hipster felting has to go. Now. In flames.
Martha buying Etsy makes sense only if Etsy is actually making money. "Attracting funding" isn't a business model that will have much appeal to an old-skool money-spinner like Martha. She doesn't need the outlet for her own products, and the proud independent crafters of Etsy are not a natural fit for Martha's Follow My Instructions world.
But, like I say, some of those Etsy things are damn cute.
is that a felt vagina? etsy is like the physical reproductions of the smugness and hipsterness of vimeo.
@Alaska Miller: My grandpa always said, the only good vagina is a felt vagina.
It's not felt, of course. It's velvet, marabou and crystal. Nice to see the marabou making a comeback; obviously, this can't be from LA.
I love Etsy. I'm designing some swim wear to have made there via the alchemy project. Check it out!
I don't think Etsy is has the smugness and hipsterness of Vimeo. I was at there office just last week and they were all so nice and open. From what I have heard Vimeo doesn't care to grow their community whereas Etsy will always try to draw in a larger group of participants.
@sarahm: Please let us know when you model the swim wear Sarah.
Once you've raised $27 million, getting acquired is no longer trivial.
The investors want a good multiple of $27 million back (let's say 5X), so they're going to want $135 million dollar return. Let's be generous and say the investors own 50% of the equity.
Can Etsy sell for $270 million?
Not now it can't.
I think amazon should acquire it
Guerilla PR. You're doin' it wrong.
@LongAgoYahoo: I remember reading somewhere that the pre-money valuation on Etsy's last round was $90MM, leaving the new investors with under 25%. To get the 5x you're referring to they'd have to sell for over $500MM.
I'm awaiting the home-made electronic ankle bracelets with diamante accents rather anxiously.
Rob Kalin:
"No, Martha isn't buying Etsy. Nice rumor, though! We did meet up to talk about ways to work together, but even that was just a preliminary chat. She made some great cupcakes."
@clashcityrockerkat: Chanel produced them a year and a half ago, for $1800 per.
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