Listen to this article
Whop, an online marketplace for digital products, has successfully raised $17 million in a Series A funding round. The round saw participation from Insight Partners, The Chainsmokers, Peter Thiel, and others, valuing the startup at over $100 million. The platform, created by co-founders Steven Schwartz, Cameron Zoub, and Jack Sharkey, aims to connect sellers and buyers within the digital economy.
The Genesis of Whop
Co-founders Schwartz and Zoub met at the age of 13 in a Facebook group over a shared interest in limited-edition sneakers. They launched one of the first “sneaker bots” and used the profits to bootstrap the creation of more software to sell online. After teaming up with Sharkey, a software developer, they created a makeshift marketplace where people could buy and sell software for free. However, this initial marketplace was overrun by scammers, leading to the creation of Whop.
Whop’s Unique Selling Proposition
Whop differentiates itself from other marketplaces through its selling experience and product discovery engine. Sellers on Whop get a dashboard with promotion and customer relationship management tools as well as analytics for business insights. Buyers, on the other hand, are treated to a recommendation algorithm, visualizations for discovering new products, and a portal for managing their purchases.
Targeting Influencers and Content Creators
Whop is targeting a different audience than your typical marketplace: influencers and content creators. The platform enables influencers to offer their audience a real product that they can collect a recurring, stable income stream on. According to Schwartz, someone with 20,000 followers with a real product is actually making more money than someone with a million followers who only posts content.
Whop’s Current Status and Future Plans
Whop currently has around a million customers and 3,000 sellers and has done $100 million in transactions to date. The company plans to use the fresh funds to further develop its platform and reach new customers. The startup currently has a team of 20 people and is looking to expand as it continues to grow.
This significant Series A funding round marks a crucial step for Whop as it aims to revolutionize the online marketplace for digital goods, setting the stage for a new era in the digital economy.
Please email us your feedback and news tips at hello(at)superbcrew.com
Activate Social Media:
