Makers Get Made

Like We Said, Raise That Paper Now. Quirky Closes $16 M. B Round

ben kaufman quirky Like We Said, Raise That Paper Now. Quirky Closes $16 M. B Round

I will pay you to help me invent something cool. Seriously

Quirky founder Ben Kaufman prefers not to give out quotes when raising new funds, focusing instead on the details of what Quirky has been up to.

But he sure does like to raise fresh capital. It raised $6 million A round last April led by RRE and, according to Venture Wire, just closed a $16 million B round led by Norwest Venture Partners with RRE participating again.

As Betabeat has written recently, start-ups are rushing to close their financing, fearful that a tanking stock market will scare off potential investors or, at the very least, drive the valuations they can negotiate way down.

Quirky is a collaborative platform for users to submit ideas and participate in the process of refining, designing and marketing that product. Based on their level of input, users receive a certain cut of any profits once the item goes on sale.

We have seen the metrics for group funding site Kickstarter explode in the last six months. Check back here soon for a growth report from Quirky to see if it backs up the big dollars they are banking. Whatever they are, expect them to grow once the TV show about Quirky starts airing on Sundance.

 

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Comments

  1. S.Ming Ooi says:

    The venture caps are looking at a 1ox return right?  Which means Quirky needs to sell at least 100 MM worth of product to value itself at 200MM sale price.  Does anyone know how much product you need to sell to hit 200 MM revenue? 

    They have to pay:
    – web people
    – product people
    – creative people
    – marketing people
    – sales people
    – operations

    Not to mention
    – marketing costs
    – sourcing costs
    – product inventory costs
    – shipping costs
    – chargebacks…etc… to retailers

    How do venture caps figure that a retail play, disguised as a social media company is going to make that much money and move that much product?  Internet retailers don’t spend money developing product, nor do they hold massive inventory or pay for product tooling.  

    Kudos to Quirky for making it work.