Etsy, the Brooklyn-based eBay for handmade stuff, has raised a $27 million Series D round. Previous investors Union Square Ventures and Hubert Burda Media re-upped, and they’ve been joined by Accel Partners; Accel’s Jim Breyer (Facebook, Marvel, Wal-Mart) will join the board. Etsy had previously raised $5 million in its two-and-a-half year history.
No word on valuation; so we’ll take a stab: Last summer, BusinessWeek pegged Etsy’s revenue at $12 million a year, and the company reportedly had a bang-up fall/holiday season. So an 8x multiple would easily get them into the $100 million range. We’ll update if we get any more info.
In the meantime, Etsy’s Robert Kalin (#50 on the SA100) provides a nicely written summary of what the company plans to do with the cash in a blog post (he also reads a parable about fish; video below). Rob says Etsy has earmarked $5 million on hardware and hosting costs alone. And some of the money will go to building an in-house payment system; improving search on the site; and providing live phone support for buyers. Etsy has 50 employees and is nearly break-even; it eventually wants to go public, Rob says.
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