Flippa raises $11M to match online asset and business buyers, sellers

Flippa, a web-based market to purchase and promote on-line companies and digital property, introduced its first venture-backed spherical, an $11 million Collection A, because it sees over 600,000 month-to-month searches from traders trying to join with enterprise house owners.

OneVentures led the spherical and was joined by current traders Andrew Walsh (former Hitwise CEO), Flippa co-founders Mark Harbottle and Matt Mickiewicz, 99designs, in addition to new traders Catch.com.au founders Gabby and Hezi Leibovich; RetailMeNot.com founders Man King and Bevan Clarke; and Reactive Media founders Tim O’Neill and Tim Fouhy.

The corporate, with bases in each Austin and Australia, was began in 2009 and facilitates exits for hundreds of thousands of on-line enterprise house owners, some that function on e-commerce marketplaces, blogs, SaaS and apps, the most recent information integration being for Shopify, Blake Hutchison, CEO of Flippa, informed TechCrunch.

He considers Flippa to be “the funding financial institution for the 99%,” of small companies, offering an end-to finish platform that features a proprietary valuation product for companies — processing over 4,000 valuations every month — and an identical algorithm to attach with certified consumers.

Enterprise house owners can promote their firms immediately by way of the platform and have the choice to herald a enterprise dealer or advisor. The corporate additionally affords due diligence and acquisition financing from Thrasio-owned Yardline Capital and a brand new service known as Flippa Authorized.

“Our technique is verification on the supply, i.e. information,” Hutchison mentioned. “Customers can presently connect with Stripe, QuickBooks On-line, WooCommerce, Google Analytics and Admob for apps, which implies they will expose their on-line enterprise efficiency with one-click, and consumers can seamlessly assess monetary and operational efficiency.”

Online retail, as a share of total retail sales, grew to 19.6% in 2020, up from 15.8% in 2019, pushed largely by the worldwide pandemic as gross sales shifted on-line whereas brick-and-mortar shops closed.

In the meantime, Amazon has 6 million sellers, and Shopify sellers run over 1 million companies. This has led to an emergence of e-commerce aggregators, backed by enterprise capital {dollars}, which are scooping up profitable companies to develop, discovering many by way of Flippa’s market, Hutchison mentioned.

Flippa has over 3 million registered customers and added 300,000 new registered customers prior to now 12 months. Total transaction quantity grows 100% yr over yr. Although being bootstrapped for over a decade, the corporate’s development and alternative drove Hutchison to go after enterprise capital {dollars}.

“There’s a large motion towards this being acknowledged as an asset class,” he mentioned. “In the intervening time, the asset class is undervalued and driving an enormous swarm as traders snap up companies and mixture them collectively. We see the way forward for these aggregators turning into ‘X firm for apps’ or ‘X for blogs.’ ”

As such, the brand new funding will likely be used to double the corporate’s headcount to greater than 100 individuals because it builds out its workplaces globally, in addition to establishing outposts in Melbourne, San Francisco and Austin. The corporate may even spend money on advertising and marketing and product improvement to scale its enterprise valuation software that Hutchison likens to the “Zillow Zestimate,” however for on-line companies.

Nigel Dews, working associate at OneVentures, has been following Flippa because it began. His agency is likely one of the oldest enterprise capital corporations in Australia and has 30 firms in its portfolio targeted on healthcare and know-how.

He believes the corporate will create significant change for small companies. The group mixed with Flippa’s skill to attach consumers and sellers places the corporate in a robust management place to make the most of {the marketplace} impact.

“Flippa is an unimaginable alternative for us,” he added. “You don’t typically get a world-leading enterprise in a model new class with unimaginable tailwinds. We additionally appreciated that the corporate is predicated in Australia, however half of its income comes from the U.S.”

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