Whop, an online marketplace for digital goods, has raised $17 million in a Series A round of funding. The round was led by Insight Partners and included investments from The Chainsmokers, Peter Thiel and other investors. This brings the startup's total valuation to over $100 million.
Whop, an online marketplace for digital goods, has raised $17 million in a Series A round of funding. The round was led by Insight Partners and included investments from The Chainsmokers, Peter Thiel and other investors. This brings the startup's total valuation to over $100 million.
The three co-founders of Whop, Steven Schwartz, Cameron Zoub and Jack Sharkey, believe there is room for competition in the digital goods market. The platform allows people to buy and sell access to digital products, such as sports gambling picks, deals on food, travel and credit cards, and tips to “level up your social game.”
Schwartz told TechCrunch in an email interview, “Whop is a comprehensive online platform aimed at connecting sellers and buyers within the digital economy. Its mission is to centralize all products on the internet, offering a one-stop solution for anyone looking to participate in the digital economy.”
The co-founders met when they were 13 years old in a Facebook group over a shared interest in limited-edition sneakers. They then launched one of the first “sneaker bots” — software to get shoes before they sold out — and used the profits to bootstrap the creation of more software to sell online.
Whop's selling experience and product discovery engine are what set it apart from other marketplaces. Sellers on Whop get a dashboard with promotion and customer relationship management tools as well as analytics for business insights. Buyers are treated to a recommendation algorithm, visualizations for discovering new products and a portal for managing their purchases.
The platform is also targeting influencers and content creators. Schwartz said, “We’re creating a new economy, giving people new things to sell. We see ourselves as competing with social media, where people have traditionally gone to sell their software, but suffer through an incredibly suboptimal experience.”
According to one source, 49% of consumers depend on influencer recommendations, while 40% say that they’re likely to purchase something after seeing it on Twitter, YouTube or Instagram.
Sources: https://techcrunch.com/2023/07/20/whop-an-online-marketplace-for-digital-goods-raises-17m/
