Etsy S-1 Analysis (NASDAQ: ETSY)

Etsy Basic Info

Exchange: NASDAQ

Proposed Symbol: Etsy

Employees: 685

CEO: Chad Dickerson

Offer Amount: $306 mm

No. of Shares: 16.7 mm

Price Range: $14-16

Expected IPO Date: April 16, 2014

Description from S-1: “We operate a marketplace where people around the world connect, both online and offline, to make, sell and buy unique goods. Handmade goods are the foundation of our marketplace. Whether crafted by an Etsy seller herself, with the assistance of her team or with an outside manufacturer in small batches, handmade goods spring from the imagination and creativity of an Etsy seller and embody authorship, responsibility and transparency. We believe we are creating a new economy, which we call the Etsy Economy, where creative entrepreneurs find meaningful work and both global and local markets for their goods, and where thoughtful consumers discover and buy unique goods and build relationships with the people who sell them.”

From the S-1

Underwriters:

  • Lead Underwriter: Goldman Sachs
  • Co-Managers: Morgan Stanley, Allen & Co.

Allocation of Proceeds:

  • The company plans to hire more employees in multiple locations globally to increase Etsy’s visibility and to help elevate the company’s sellers and attract more buyers.
  • The company also says it will use $300,000 of the proceeds to partially fund Etsy.org, which is a nonprofit organization formed in January 2015 dedicated to educating and helping women and other underrepresented entrepreneurial populations build businesses.

Total Assets: $62.177 mm

Sales (last 12 months): $195.6 mm

Market Cap at Midpoint of Current Price Range: $1.6644 billion

Competitors:

  • Public = Ebay (EBAY), Amazon (AMZN)
  • Private = Semadic, Society6, Darrb, ArtFire, Zibbet

Other Notes

  • Based in New York City
  • Founded on June 18, 2005
  • Etsy is a registered B Corporation (the B stands for “Benefit”), which means that it is a for-profit entity whose legally defined goals include generating a profit in addition to having a positive impact on society & the environment
  • Funding Rounds
    • June 2005 — Angel Round– $400K
    • November 2006 — Series A — $1 mm
    • January 2007 — Series B — undisclosed sum
    • July 2007 — Series C — $3.3 mm
    • January 2008 — Series D — $27 mm
    • August 2010 — Series E — $20 mm
    • May 2012 — Series F — $40 mm
  • Etsy has been profitable since 2009
  • User Stats
    • 40+ million members
    • 1 million active shops
    • ~26 million items listed
    • processed $1.35 billion in total merchandise sales in 200 countries in 2013
  • 2014 AlwaysOn Global 250 Top Private Companies winner
  • 2014 CNBC’s Disruptor 50 company
  • SharesPost 100 Company
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