Etsy Inc. Files For IPO 'To Increase Visibility'

Etsy Inc. filed for an initial public offering Wednesday and said the number of shares and price hasn't been determined. Insiders will continue to hold 47 percent stake in Etsy following the offering, including 30 percent held by James W. Breyer and 15 percent by Fred Wilson. Etsy said in a filing that the purpose of the offering is to increase its visibility, create a public market for its shares and and enable future access to the public equity market. Previous unconfirmed reports have suggested the company seeks to raise amounts ranging between $100 million and $300 million in the offering. Net proceeds will be used for working capital and general coprorate purposes according to Etsy's filing Wednesday. The company will also donate $300,000 of proceeds to a charity that will educate women and minorities about business, the company said. New York-based Etsy provides an online sales platform for hand-crafted goods and claimed in its prospectus to have 1.4 million active sellers and 19.8 million active buyers. The company noted that it hasn't achieved profitability since its founding in 2005, and that its business could suffer if it can't maintain "the authenticity of our marketplace and the connections within our community." Etsy posted a 2014 net loss of $4.9 million net loss on $108.7 million in revenue. In 2014, Etsy said its sellers generated sales of $1.93 billion, of which 36.1 percent came from purchases made on mobile devices and 30.9 percent came from an Etsy seller or an Etsy buyer outside of the U.S. Etsy posted a 2014 net loss of $4.9 million net loss on $108.7 million in revenue.