Livestream Auction Startup Whatnot Notches $4 Million Seed

The livestream collectibles auction platform Whatnot has raised $4 million in a seed funding round backed by Scribble Ventures, Wonder Ventures, Y Combinator, and others.

“Fandom had always had a place online, but truly thrived at in-person events and local retailers that catered to collectors and enthusiasts’ interest in one-of-a-kind and holy grail items,” Logan Head, co-founder and chief technology officer of Whatnot, said in a press release on Friday (Dec. 18). 

“We built Whatnot not just to enable transactions, but to capture the fun of the in-person experience, so our communities can connect in real time and geek out with their favorite sellers,” he added.

Whatnot facilitates peer-to-peer connections between enthusiasts. About 90 percent of sellers on the platform are not small businesses, but enthusiasts who buy and sell collectibles as a hobby or side hustle, the company said. Founded in 2019, the Silicon Valley startup said the funding will go towards expanding its reach to include video games, comics books, designer toys and vintage fashion.

What sets Whatnot apart from other digital marketplaces for collectors is its built-in live streaming capabilities that facilitate real-time interaction and connection, the company said.

Since launching last December, Whatnot reports that its user base and average sales have continued to grow. Sales have grown on average 60 percent month over month, and popular sellers have tallied more than $2 million in sales. 

“Live streaming is a $150 billion market in China, and retailers of all stripes are trying out live selling for themselves,” said Dustin Rosen, managing partner, Wonder Ventures. “We think that by tapping into the collectible and enthusiast communities, Whatnot is perfectly positioned to capitalize on live streaming’s early success in the U.S.”

Livestreams and social commerce are the latest digital shopping trends to take off during the pandemic lockdown. Walmart and TikTok announced their first shopping collaboration scheduled to take place live at 8 p.m. EST on Walmart’s TikTok page. Ten TikTok creators will participate in a 60-minute shoppable variety show, “Holiday Shop-Along Spectacular.”