Whatnot, the livestream shopping app founded by Grant LaFontaine and Logan Head, has grown into America’s largest platform of its kind with a valuation of $20 billion, according to fortune.com. The company launched in December 2019 and quickly gained traction by offering an interactive format where sellers livestream auctions, allowing customers to bid and ask questions in real time.
The founders’ journey began with Logan Head isolating himself for weeks to build the app, coding 16 hours a day, six days a week. After launching, they applied to Y Combinator’s winter cohort three months later. Their initial challenge was hosting the first livestream auction, which involved selling items from their personal collection of Funko Pop figurines. Despite nervousness about the format’s success, the approach proved effective and helped scale the platform rapidly.
Whatnot’s rise reflects a broader trend in livestream shopping, a sector that has seen significant growth outside Asia. The app’s success is notable given the 100 investor rejections the founders faced before securing funding. The platform’s model combines elements of e-commerce and social interaction, positioning it alongside giants like Amazon and Airbnb in terms of innovation and market impact.
The company’s valuation milestone was highlighted in a recent Term Sheet vodcast episode featuring CEO Grant LaFontaine. This $20 billion valuation underscores the rapid expansion of livestream shopping in the U.S., marking Whatnot as a key player in this evolving retail format.