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eCommerce - Monday, June 5, 2006

Union Sq./Flickr/Delicious Folks Seed Etsy

Last week Union Square Ventures and the founders of Flickr and Delicious participated in a “small friends of Etsy round of financing.”

Union Sq. explains why they invested in Etsy: “In the past 10 months, Etsy has grown by word of mouth to over 10,000 artists selling their handmade goods to over 40k buyers. Today, there are over 100k listings on Etsy, every single one of them handmade and available for sale. And over 70k items have been sold on Etsy at a sell-through rate that beats eBay. The business model is straight out of eBay - listing fees and a small piece of the transaction. But Etsy charges significantly less and has a simpler fee structure than eBay.”

The a:c reads into comments that Etsy plans to be much bigger than a hand-made site. It has aspirations to become the new, more chic eBay.

Hipster, hand-made Jacket 4 Sale on Etsy

Read - Union Sq. Ventures