These two articles (from CBS & PhysOrg) are interesting reads on last week’s Twitter IPO, and according to both, Twitter set the stage for more online consumer companies to follow. Not-yet-ready-for-prime-time Etsy is not named in either of the articles, but the company is most certainly headed in the direction of an IPO.
Right now, Etsy is churning out (free) PR through the use of its’ friends in the media. Not looking so good however, as most comments accompanying the media pieces are less than flattering (is that an understatement?) suggesting Etsy’s past advertising technique (free word of mouth from customers) is no longer working in its’ favor. Rusetsy says watch for some real paid advertising to come out of the company soon.
Different Companies; Same People
One of those who will most benefit from the Twitter IPO is Union Square Ventures, one of the investment firms behind Twitter, holding 27,838,992 stock shares worth approximately $1.25 billion. Fred Wilson of Union Square Ventures at one time served on Twitter’s Board of Directors, and currently serves on the Etsy Board. (As Fred Wilson said, “the rich get richer…”)
(Jim Breyer, Fred Wilson. Those guys are everywhere.)
(and, more on Jim Breyer)