My First Million · Podcast summary
Whatnot founder: This is the future of e-commerce
Whatnot founder Grant LaFontaine shares the story of building a $20 billion live shopping marketplace, from its humble beginnings selling Funko Pops to becoming a major player in e-commerce.
Listen on the show ↗Key takeaways
- 💰Whatnot's valuation of $20 billion surpasses the combined market caps of several well-known companies, highlighting its rapid and significant growth.00:00
- 🚀Grant LaFontaine's journey from working in a deli and almost failing high school to co-founding a multi-billion dollar company demonstrates a remarkable entrepreneurial trajectory.00:30
- 📈Early growth was achieved by Whatnot acting as its own seller, authenticating items, and then purchasing them from various online stores once sold, supported by a sophisticated pricing algorithm.02:044
- 🎥The launch of live selling in July 2020 was a transformative moment for Whatnot, leading to exponential growth and enabling sellers to achieve higher sales than through traditional retail.03:023
- 📊Whatnot's pivot to collectibles was driven by data showing Funko Pops outselling comic books on eBay, indicating an underserved niche market with significant demand.01:222
- 🎁The viral giveaway mechanic, where users shared the app to enter raffles for valuable Funko Pops, was a key growth hacking strategy that helped Whatnot dominate relevant online communities.02:290
Chapters
- 0:00Whatnot's $20 Billion Valuation
- 0:30From Deli Worker to Tech Founder
- 7:32The Origin Story of Whatnot
- 23:27Vision vs. User-Driven Approach
- 26:41The Importance of Niche Markets
- 31:58Growth Hacking and Early Traction
- 50:29The Power of Live Selling
- 1:02:09Leadership and Personal Growth
- 1:34:07The Future of Live Commerce
The digest
Grant LaFontaine, co-founder of Whatnot, joined the podcast to share the incredible journey of building his live shopping marketplace into a $20 billion company. Whatnot, which started by selling collectibles like Funko Pops, has expanded to offer a vast array of items, from rare cards to fresh seafood, and is now poised to capture a significant share of the e-commerce market.
The Unlikely Path to a $20 Billion Valuation
Grant began by highlighting the sheer scale of Whatnot's success: a $20 billion valuation, surpassing the combined market caps of companies like Wendy's, Under Armour, Hertz, Harley Davidson, and American Airlines. He humbly admitted that he tries not to focus on the numbers, as it can lead to complacency. Grant and his co-founder, Logan, started Whatnot six and a half years ago, coming from backgrounds in consumer internet and marketplace platforms. Their initial idea was to build a "better, full-service Craigslist," a concept Grant now humorously calls a "horrific business idea." This early venture, focused on used goods, proved unsustainable due to high delivery costs relative to the low value of items.
Keep reading in The Digest
The full 4-minute article, 6 more sections, and every new episode from My First Million and the creators you follow.
- The Pivot to Collectibles and Live Selling
- Growth Hacking and Early Challenges
- The Power of Live Commerce and COVID-19
- The "All Shucks" Success and the Importance of Truth
- Leadership and the Pursuit of Detail
- The Future of Live Commerce and Whatnot's Ecosystem
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