Whatnot is in talks to raise a new funding round at a $20 billion valuation - businessinsider.com

What the report says

Business Insider reported that Whatnot, the Los Angeles-based live-shopping startup, is discussing a new financing round that could value the company at about $20 billion. The report, citing people familiar with the matter, said the talks are still underway and the terms may change. Whatnot did not respond to Business Insider’s requests for comment.

The potential valuation would mark a sharp increase from the roughly $11.5 billion valuation at which Business Insider said Whatnot raised money late last year. The company operates livestream shopping across categories including fashion, sneakers, sports cards and vinyl records, and earns revenue by taking a portion of transactions on its platform in North America and Europe. Business Insider reported that Whatnot recorded $8 billion in live sales last year.

The report frames the talks as notable because venture funding has recently been heavily concentrated in artificial intelligence companies, including model developers, chip-related startups and infrastructure providers. A large new round for Whatnot would suggest continued investor interest in consumer internet businesses that show strong growth.

Business Insider noted that Whatnot’s model draws from the much larger livestream commerce market in China, including platforms such as Taobao. While live shopping has grown more slowly in Western markets, social commerce services such as TikTok Shop have helped make buying through live video more familiar to consumers. Whatnot’s backers include Andreessen Horowitz, Y Combinator, CapitalG, Sequoia Capital and Lightspeed Venture Partners.