Whatnot is proving there's still room for consumer startups in the AI era.
Live shopping startup Whatnot is in talks to raise financing at about a $20 billion valuation, according to people familiar with the matter.
This would be a significant jump from the $11.5 billion valuation at which the company raised capital late last year.
Whatnot hosts livestream shopping across categories ranging from fashion and sneakers to sports cards and vinyl records, taking a cut of each sale made on its platform in North America and Europe.
The round is in progress, and details could change. Whatnot did not respond to requests for comment.
Inspired by the large Chinese live shopping industry, such as Taobao, Whatnot has built a following among collectible users who use the platform to interact with and purchase products. The company notched $8 billion in live sales last year.
Consumer internet startups have struggled to attract venture capital amid the AI boom, as much of the industry's capital chases foundation models, chips, and infrastructure. Whatnot's potential valuation jump could signal that investors still have an appetite for consumer startups with rapid revenue and user growth.
Livestream shopping is already a massive business in Asia, generating hundreds of billions of dollars in annual sales. The format has been slower to catch on in the West, but platforms like TikTok Shop have helped normalize buying products through social media and live video, giving companies like Whatnot a tailwind.
The Los Angeles-based startup is backed by Andreessen Horowitz, Capital G, Sequoia Capital, and Lightspeed Venture Partners.