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


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

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

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

He considers Flippa to be “the funding bank for the 99%,” of small companies, providing an end-to end platform that includes a proprietary valuation product for businesses — processing over four,000 valuations each month — and a matching algorithm to attach with certified consumers.

Enterprise house owners can promote their corporations instantly by means of the platform and have the choice to usher in a business dealer or advisor. The company also provides due diligence and acquisition financing from Thrasio-owned Yardline Capital and a brand new service referred to as Flippa Legal.

“Our strategy is verification on the source, i.e. knowledge,” Hutchison stated. “Users can at present hook up with Stripe, QuickBooks On-line, WooCommerce, Google Analytics and Admob for apps, which suggests they will expose their on-line enterprise performance 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.eight% in 2019, driven largely by the global pandemic as sales shifted on-line while 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 successful companies to grow, discovering many via Flippa’s marketplace, Hutchison stated.

Flippa has over three million registered users and added 300,000 new registered users prior to now 12 months. General transaction volume grows 100% yr over yr. Although being bootstrapped for over a decade, the corporate’s progress and opportunity drove Hutchison to go after venture capital dollars.

“There's a large motion toward this being acknowledged as an asset class,” he stated. “In the intervening time, the asset class is undervalued and driving an enormous swarm as buyers snap up businesses and combination them together. We see the way forward for these aggregators turning into ‘X company for apps’ or ‘X for blogs.’ ”

As such, the brand new funding might be used to double the company’s headcount to more than 100 individuals because it builds out its workplaces globally, as well as establishing outposts in Melbourne, San Francisco and Austin. The company may also spend money on advertising and product improvement to scale its enterprise valuation device that Hutchison likens to the “Zillow Zestimate,” but for on-line companies.

Nigel Dews, working companion at OneVentures, has been following Flippa since it started. His firm is likely one of the oldest venture capital companies in Australia and has 30 corporations in its portfolio targeted on healthcare and know-how.

He believes the corporate will create meaningful change for small companies. The staff mixed with Flippa’s capability to connect consumers and sellers places the corporate in a robust management position to reap the benefits of the marketplace effect.

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