Etsy's Venture Capital Landscape: A Comprehensive Overview of Investors

Etsy, the well-known marketplace for handmade, vintage, and unique goods, has attracted a diverse group of investors over the years, including both angel investors and venture capital firms. This article delves into the financial footprints of these investors, providing a detailed overview of the funding rounds and individual contributions.

Angel Investors

At the early stages of Etsy's growth, the company also benefitted from the support of angel investors. According to CrunchBase, a total of 51.6 million dollars flowed into the company primarily through angel investments. The six figures invested in 2005 by angel investors, including Spencer Ainn, Judson Ainn, and Sean Meenan, marked the earliest external funding for the company.

One of the notable angel investors was Caterina Fake, co-founder of Flickr and Hunch, who also served as a director. Another significant angel was Joshua Schachter, known for his work with Delicious, adding further credibility to Etsy's early days.

Series A (2006) and Series B (2007)

The Series A funding round in November 2006 saw a significant influx of 1 million dollars. This round was led by Union Square Ventures with additional contributions from Caterina Fake, Stewart Butterfield, Joshua Schachter, and Albert Wenger.

The Series B round in 2007, again led by Union Square Ventures, showed a continued interest from the investors involved in the Series A round, emphasizing their confidence in Etsy's growth potential.

Series C and D (2007 and 2008)

Series C and D rounds further expanded Etsy's funding. The third round in July 2007 saw Union Square Ventures leading a 3.25 million dollar investment. In January 2008, the fourth round attracted a substantial 27 million dollars, led by Accel Partners, Union Square Ventures, Hubert Burda Media, Acton Capital Partners, and Index Ventures.

Series E (2010)

The fifth and final round mentioned in the dataset took place in August 2010, with 20 million dollars flowing in. The round was co-led by Index Ventures, Accel Partners, and the same set of investors who were present in the previous rounds.

Early Funding

It is worth noting that before the institutional funding, Etsy received an initial injection of capital from a bar owner in exchange for a new bar made by the founder, who is a skilled woodworker. This unique arrangement set the early stage for the company's growth journey.

While these figures reflect the major investments and their respective actors, it is important to recognize that this overview is not exhaustive. Numerous other smaller investments and contributions from angel investors and venture capital firms have supported Etsy throughout its evolution.

In conclusion, Etsy's venture capital landscape is diverse, featuring prominent venture capital firms and notable angel investors. These investments have played a crucial role in shaping the company into the successful online marketplace it is today.