⚡ How Etsy was Able to Take Advantage of Local Crafting Fairs to get Their First Users

Morning Innovators ⚡ This week (in less than 5 minutes!) we’ll explore…

📹 How Etsy was able to take advantage of local crafting fairs to get their first users
📰 All the biggest news stories in the start-up world
👀 Our 3 favourite start-ups to keep an eye on this week
📧 How Airbnb used cereal boxes to stay alive when they were on the brink of death
🥳 All the best job opportunities and events in the start-up world
📱A tool that speeds up building internal tools like admin dashboards and database GUIs

👆 The most clicked link in the last week’s newsletter was this article about Octopus Money acquiring a majority stake in divorce services start-up Amicable.

We’re going to be taking a break next week for the holidays, so we’ll see you all again in 2024!

Happy hustling,
Rich & Gary

How they got their first users… This week we’re going to unravel the thread of Etsy's early days (see what I did there). Today, Etsy stands as a bustling digital marketplace for unique handcrafted goods, but how did they get their first users?

The original idea for Etsy came from common discontent heard on a crafters’ forum: dissatisfaction with eBay. This was Etsy's "aha" moment. Why not create a platform tailored for crafters? Think eBay but a place where individuality and artistry were celebrated, not stifled.

Etsy's initial hurdle was classic for marketplaces: attracting both sellers and buyers. With a two-month sprint to launch, the team knew they had to act fast and smart.

Brooklyn, a design haven with its artisan flea markets, served as the perfect incubator. Etsy's team hit the ground running, literally. They scoured local craft fairs, art shows, and even ventured across the U.S. and Canada. Their mission? To inspire artisans to join their budding platform.

Etsy’s masterstroke was tapping into the crafting movement. They didn't just attend crafting fairs; they engaged high-profile crafters. Offering "craft show kits" and lunches, Etsy wooed these influencers, connecting fragmented local groups into a cohesive online community.

The buyers flowed in, thanks largely to bloggers who championed crafting as an expression of individuality against mass-produced culture. This word-of-mouth endorsement was gold, solidifying Etsy's reputation as a community-focused, quality-driven marketplace.

Unlike eBay, Etsy's focus on building a community paid off. They didn't just create a marketplace; they nurtured a haven for creativity and connection. This approach was instrumental in their early growth.

With millions of listings and a plethora of content, Etsy became a darling of search engines. By 2011, organic channels were driving a whopping 87-91% of traffic, a testament to the power of SEO in sustaining and amplifying growth.

Enter the era of social media. Etsy's integration with platforms like Pinterest in 2012 catapulted their growth, harnessing the burgeoning social media trend to reach a wider audience. Today Etsy is a behemoth, supporting over $13bn in gross merchandise sales annually 😲

How can you apply some of the lessons from Etsy’s origins?

Listen to Your Audience: Etsy's origin lies in understanding and addressing a specific audience's needs.

• Conduct Surveys and Feedback Sessions: Regularly engage with your audience through surveys, feedback forms, and one-on-one interviews. Understand their pain points, preferences, and expectations.

• Analyse Customer Behaviour: Use analytics tools (like Hotjar that we mentioned last week) to study how customers interact with your product or service. Look for patterns that indicate their needs and preferences.

• Implement Changes Based on Feedback: Actively incorporate customer feedback into your product development. This shows your audience that their opinions are valued and considered.

Go Local, Think Global: Start with local communities, but always have a broader vision.

• Local Partnerships and Collaborations: Partner with local businesses or communities to gain initial traction. This could involve co-hosting events, cross-promotional activities, or joint products.

• Tailor Products for Local Needs: Initially design your products or services to cater to local tastes and preferences, ensuring a strong foothold.

• Expand Gradually: As your local base strengthens, start adapting your offerings for a global audience. Maintain the core essence of your product while incorporating elements that appeal to a broader market.

Influencer Engagement: Connect with influencers who genuinely resonate with your brand values.

• Identify Aligned Influencers: Look for influencers whose values and audience align with your brand. Quality over quantity is key – a few well-aligned influencers can be more effective than many with little relevance.

• Create Authentic Partnerships: Develop genuine, long-term relationships with influencers. This can involve collaborative product development, exclusive launches, or content creation that resonates with both your brand and the influencer’s audience.

• Measure Impact: Regularly assess the effectiveness of influencer partnerships through metrics like engagement rates, referral traffic, and conversion rates.

Community First: Prioritise building a community, not just a customer base.

• Build Platforms for Interaction: Create online forums, social media groups, or in-person meetups where your customers can interact, share experiences, and offer support to each other.

• Engage Regularly: Regularly engage with your community through these platforms. Host Q&A sessions, share behind-the-scenes content, and provide exclusive updates to make your community feel valued.

• Encourage User-Generated Content: Motivate your community to create content related to your product or service. This could be through contests, featured posts, or rewards for sharing their experiences.

Leverage SEO and Social Media: Utilise digital channels effectively to maintain and accelerate growth.

• Optimise Website for Search Engines: Regularly update your website with relevant and keyword-rich content. Ensure that your site structure, metadata, and alt texts are optimised for search engines.

• Consistent Social Media Presence: Maintain a strong, consistent presence on social media platforms where your audience is most active. Share engaging, informative, and entertaining content.

• Utilise Analytics: Use social media and SEO analytics to understand what content performs best, and continuously refine your strategy based on this data.

• Advertise Strategically: Employ targeted advertising on social media platforms to reach a broader audience. Tailor your ads based on user demographics, interests, and online behaviour.

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🎨 Adobe, Figma Scrap Planned $20B Buyout Following Regulatory Pushback
Crunchbase News
Adobe has called off its planned $20 billion purchase of design software start-up Figma following pushback from antitrust regulators in the U.K. and European Union.

🛴 Electric scooter company Bird files for bankruptcy
TechCrunch
Bird has filed for Chapter 11 bankruptcy, capping off a turbulent year for the electric scooter company.

🧠 Industry predictions for AI in 2024
UKTN
Artificial intelligence has been the defining technology theme of 2023. Recent advancements, particularly in the field of generative AI, have launched the space to one of the most watched and best-funded sectors in all of tech.

🏃‍♀️ Jessica Ennis-Hill and WSL stars join Players Fund VC
UKTN
The Players Fund, an investment group of athletes past and present, has brought on a new cohort of sportswomen as partners, including Olympic gold medallist Dame Jessica-Ennis Hill.

Each week we’ll be spotlighting some of the most exciting start-ups you haven't heard of yet. This week we decided to look at some exciting start-up’s providing access to finance.

Factored offers landlords a quick and flexible finance solution to improve tenant living conditions and reduce carbon emissions. It enables property upgrades and energy-efficient renovations, increasing property value. This non-credit-based financing also covers personal expenses, offering upfront cash through future rent conversion. With affordable fees, no strict credit checks, and no early repayment penalties, it's ideal for landlords with unique challenges, like unmortgageable properties.

Salt Finance offers a streamlined boat financing experience through its app and website, providing quick decisions and easy access. Targeted at UK residents, it offers no-obligation quotes with competitive APR rates for loans from £10,000, spread over up to 15 years. The process is simple and fast, with professional advice available throughout. The user-friendly app allows for 24/7 account management and tracks the financing process from start to finish, ensuring a hassle-free journey to boat ownership.

Kanda provides a fast finance solution for UK trades, enabling them to offer monthly payment options without needing an FCA license or minimum turnover. Tradespeople can apply in 5 minutes and start within 2-4 weeks, with no trading history needed. The platform allows for easy quote creation and sending, with customers able to quickly secure finance. Upon job completion, tradespeople receive prompt payment, streamlining cash flow. Kanda offers various financing options, including interest-bearing and interest-free plans. Its integration is straightforward, boosting business efficiency and appealing to a broad range of trades, from electricians to conservatory builders. A free marketing pack is provided upon approval.

Everyone knows how much of a roaring success Airbnb has been over the past decade, but it hasn’t always been that way. To get the company off the ground, the founders used a vast amount of credit cards to fund the early stages, eventually filling up a folder with maxed out credit cards.

Airbnb was very up and down in their earliest stages, when there were events in certain areas they would see a big spike in bookings. Otherwise, it was pretty quiet. They noticed that lots of their bookings came from people following the Presidential rally across the USA. So, in a bid to make a bit of money and get their name out there, the Airbnb team decided to create the two different cereal boxes shown above. If you were in support of Obama, you could purchase the Obama O’s, and if you were a McCain fan, you could pay to get your hands on some Cap’n McCains.

Not only did this get them a lot of media attention, leading to plenty more bookings, but it also generated them around $40,000 in revenue. However, the most important outcome in this entire situation was that it completely WOW’d Paul Graham. Having severely struggled to raise their first round of funding, the Airbnb founders were seriously running out of time. After endless rejections, they felt that Y Combinator was their absolute last chance. Having pitched their hearts out Paul and the YC partners, they received a pretty firm no. Devastated, on their way out they offered the partners one of the last boxes of cereal. The partners were confused as to why they had this Presidential cereal, so pushed the founders on where they got it. The founders gave them the full story, which left the partners so impressed with their hustle that they gave them a place in YC on the spot. Thus, leading to Airbnb’s first investment cheque and meteoric rise to success.

Can you take advantage of a certain event or occasion that your customers might be going to? Can you give them with something that will leave a lasting impression?

As start-up founders ourselves, one of the areas we’re really passionate about is raising awareness of opportunities. If you’re not mixing in the right circles, it can be really easy to miss a pitch event, or job opportunity that could be game-changing for you. We’ve included a few upcoming events and opportunities below, but this is where we really want to leverage our community of innovators. Please reply to this email with any tips and opportunities you think we should be featuring.

💼 Job opportunities

🏅 Full Stack Engineer, gocertify
🖍️ UX Designer, Stravito
💻 Sales Development Representative, Flow Engineering

🎤 Events/Opportunities

As it’s close to Christmas there’s not many opportunities to highlight this week, but a couple that may be of interest:

Founders Factory applications are currently open (here).

Also applications for Bethnal Green Ventures’ Tech for Good programme are also open. They offer £60k investment and 6 weeks of intensive learning.

Each week we’ll be highlighting our favourite tools - either something we’ve been using in our businesses, or tools that our innovator community have recommended.

This week we’re showcasing a popular tool low-code developer solution called Retool. Retool speeds up building internal tools like admin dashboards and database GUIs. It offers drag-and-drop components for rapid creation, while allowing customisation through Javascript and SQL. Unlike other low-/no-code platforms aimed at non-technical users, Retool emphasizes the flexibility and customisability of traditional coding, integrating these features within an easier-to-use environment. This approach targets technical users and addresses the limitations in customization often found in simpler platforms.

Next week we’ll be taking a little break for Christmas, to make sure that we can come back firing on all cylinders. 2024 is going to be an exciting one, with events, products and more content than you could ever imagine.

Have a Merry Christmas, and a Happy New Year!

P.S. Connect with us on LinkedIn…