Bookmark this page, because it’s going to become a pillar of useful information surrounding Etsy’s IPO in the coming weeks and months.
“I’m here to help your Etsy shop thrive and will be working overtime in my commitment to help you in every way as Etsy’s IPO draws near. Help me spread the word about this post and my commitment to Etsy sellers by bookmarking and sharing this post in your Etsy teams, Facebook groups, and via social media.” – Regards, Jason Malinak of Etsy-preneurship
3.5.15 – My Initial Thoughts on Etsy’s IPO and a Letter From Chad Dickerson of Etsy
I just spent the morning reading through Etsy’s mammoth S-1 Form and recorded my initial thoughts and a copy of a letter in the registration that Chad Dickerson CEO of Etsy wrote. Check it out here.
3.4.15 – Etsy just sent an email stating Etsy has filed a registration for a proposed IPO
You can read the letter here. More analysis coming soon! Stay tuned.
1.15.15 – Etsy IPO? If true, what happens next?
1.14.15 – Initial News Summary, Sources, and Commentary from Etsy Sellers
Here is my brief summary of the initial news reports:
In summary, an IPO (initial public offering) on a public stock exchange could happen this quarter (before March 31, 2015) with hopes to raise $300M. This would be the biggest New York tech IPO since 1999. Supposedly, Goldman Sachs & Morgan Stanley are working with Etsy on the IPO. Etsy has not released any comments yet. Sources of all the above information has not yet been identified.
Here are the sources:
Also note: this message from Chad Dickerson, Etsy CEO, announcing recent board member changes on December 15, 2014.
Here are a few pieces of commentary about the news that I’ve heard from Etsy-preneurship Thrive Members:
- “I am concerned that the company will be solely driven by the shareholders and profits… Which in turn will lead to even more wholesalers and mass producers flooding the site. I am concerned that the site has already allowed these businesses to get away with it and now it will continue to get worse. Additionally, I am concerned about fee increases and other changes that will affect my business.” -Christina Swanson of Mad Jo Apparel
- “I am hopeful that this will bring more traffic to the site, and more sales for us Etsy sellers. I am also concerned about the increase in non-handmade items, and no I am not counting digital items, instead I refer to products from China that are pre-made yet trying to pass themselves off as handmade.” – Jennifer Bedell of Jeannies Pet Corner
- “I’m excited about more traffic potential for sure. It’s amazing how many people still don’t know about Etsy. My concerns center around possible changes to the fee structure, promoting items, and the social aspects. I continue to be fearful about an influx of mass produced items being passed off as handmade.” – Kerri White of Shawl Pin Heaven
- “I’ve always competed with mass produced items (really we all have), so I’m not concerned about that. I’m more concerned that Etsy will end up with people running it that don’t understand the needs of small shops and stop adding great features like the card readers. However I am excited at the publicity it could bring and the money it could bring in to begin with that would allow them to improve the site even more than buyers and sellers. I’m also excited that maybe I could own a piece of Etsy.” – Dawn Craig of Fairy Tale Knit
- “Like every business decision, there will be both pros and cons to this. The question is always “will the pros outweigh the cons” I think for Etsy and it’s shareholders it probably will, as we small business owners have been marketing Etsy for FREE for them for years and they will be able to ride in on our poor ragged coat tails. I am not so sure about the Sellers though. Etsy has been working towards this move in the background for some time now, opening the doors to factory made goods and slowly nudging the true handmade items out of the market. What more if they are having to answer to shareholders – as small individual stores we cannot compete nor do we have as deep pockets as the large factories. My feeling is that with this move Etsy will just become another Alibaba and we will be left with the scraps.” – Tara Potter of Blue World Treasures
- “I am looking forward to the additional exposure for Etsy and the added credibility that comes with an IPO of this magnitude. I also believe the additional oversight that comes with a public offering will benefit us all in the long-run. Whether Etsy will continue to be the premier online marketplace for the handmade artisan remains to be seen.” – Caroline Randall of Caroline Randall Made
- “It’s understandable for those to be concerned but I see it as a positive step in attracting more customers shopping for unique items. I believe the majority of shoppers are savvy enough to distinguish between that which is truly handmade and that which is mass produced. In the almost three years I’ve been on Etsy, I’ve only seen my sales grow even with the multiple changes they’ve made.” – Cindy Kassebaum of Rock and Hardware
- “Now there’s a chance for completely revamped rules, regulations, fees, etc…a completely new “company”. Is this a good thing or a bad thing? Does it really mean there will be more exposure for us? Whatever the answer is it doesn’t sit right with me. Once Facebook went public there was nothing but negative changes and small businesses were left in the dust. Will the same happen with artisans on Etsy? I love what Etsy orginally stood for and would love for it to go back to it’s roots and fully support the #shopsmall movement.” – Jenn Warner of Homemade Trends
It’s funny , just 8 days ago I wrote the following comment on the Etsy-preneurship Facebook page, ‘In short, I think Etsy will eventually have an IPO on a major stock exchange. Maybe I should write an entire article on this at some point?’ Well guess what Etsy sellers?!?!? That time is now. I didn’t quite think it would be this soon, but I guess Etsy is ready. My background as a CPA, knowledge of the financial markets, and experience of helping thousands of Etsy sellers since 2007 sure fits conveniently to provide some interesting commentary on this big news event. Thank you for your trust as I continue to help your Etsy shop thrive! – Jason Malinak
Make sure you like Etsy-preneurship to stay alert of how this Etsy IPO news impacts your Etsy business! Regards, Jason Malinak CPA, of Etsy-preneurship