Win Investor's Love: Pitch for Arts Marketplace Fund

  • Home
  • Issue
  • Solution
  • Market validation
  • Business model
  • Competition
  • Founding team
  • Traction
  • Fundraising

Issue

The arts, crafts and gifts industry lacks a centralized online platform where makers and artists can sell their unique and quality handmade items. This is particularly concerning given that many customers struggle to find and purchase such items, and manufacturers struggle to reach their target audience. To illustrate this problem, let me tell you about Mary, a young mother of two in suburban Chicago.

Mary enjoys purchasing handmade items for her home and family, but has difficulty locating these products in her area. The local craft fair is only open a few times a year, and the handmade items available in nearby boutiques are expensive and limited in selection. She’s tried shopping on Etsy and Amazon handmade, but she has trouble navigating the sites and feels overwhelmed by the number of sellers and items available.

This issue is incredibly relevant as the demand for handmade products continues to grow, and customers are looking for unique, high-quality items that cannot be found in large retail chains. However, current market offerings leave customers frustrated and manufacturers find it difficult to stand out and access a large audience.

The current solution to this problem is to use marketplaces like Etsy and Amazon handmade, but these platforms are not specifically designed to meet the needs of handmade makers and artists. While these online marketplaces have been successful, they lack the community building aspect and educational resources that customers and manufacturers are looking for.

The problem exists because there is a lack of a centralized platform that meets the unique needs of the arts, crafts and gifts industry. With the growing popularity of handmade items, makers need a platform that allows them to access a wide audience and customers are looking for a more streamlined and personalized shopping experience. The market needs a platform that fosters a sense of community and provides relevant educational content to help new makers and artists get started.

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Solution/value proposition

Our arts, crafts and gifts marketplace provides a solution to the problem that the industry does not have a centralized online platform for makers and artists to sell their unique and quality handmade items, and customers find it difficult to find and purchase such items.

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Our platform is designed to be user-friendly, for both manufacturers and buyers. The unique products featured here range from jewelry and home accessories to art and clothing. Customers can purchase directly or place custom orders with individual manufacturers. Additionally, we provide educational resources on creating and selling products, making it easier for new makers and artists to get started in the industry.

The solutions we provide make us an excellent choice for manufacturers and customers. Our platform provides a centralized space for makers to showcase their products, and customers can easily access high-quality handmade items. Additionally, our focus on education and resources helps new manufacturers get started in the industry.

We believe that our platform is so good that the customer will do anything to have it! When a customer completes a purchase, they will feel excited to directly support the manufacturer and to have had access to a unique, lovingly crafted item. Additionally, our platform helps foster a supportive and engaged maker community, so customers not only purchase a product, but also support a growing community of creative individuals around the world.

Our solution is incredible in that we provide a unique experience for manufacturers and customers. By providing a dynamic, friendly platform and educational resources, we create a sustainable and supportive community in the arts, crafts and gift industry.

  • Does this really solve the problem addressed? Yes, our solution provides a centralized platform for makers and artists to sell their unique and quality handmade items, making it easy to find and purchase these items with ease.
  • How will the customer feel after using the solution? Delighted that they have direct access to unique and lovingly handmade items, as well as supporting the growing community of creative people involved.
  • Is the solution amazing? Yes, our solution provides a unique and dynamic platform for manufacturers and customers, and fosters a community of support and engagement across the industry.

Market validation

Our market validation is based on extensive research and customer feedback that indicates significant demand for a centralized online platform that caters to handmade items, crafts and gifts. According to market research, the current handmade market is valued at billion , with a projected CAGR of 4.16% by 2025.

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Our Tam For handmade market is large and includes individual sellers, small businesses, and customers who are looking for unique products that cannot be found elsewhere. In the United States alone, there are over 36 million people who identify as DIY enthusiasts, and our research shows that this number is steadily increasing.

Our research also showed that 86% of respondents would use our platform to purchase handmade items. This data, combined with the current situation where more customers are shopping online, indicates that our market could have significant success and growth potential.

Our addressed market has several details, including Revenue per customer and sales cycles . Our average transaction value would be around , with around 10,000 transactions per month. Our sales cycle would be relatively short, lasting no more than two weeks, which makes our business model work and ensures timely revenue streams.

It is a good idea to start a business in this market because the craft, craft, and gift industry does not have a centralized online platform where makers and artists can sell their unique products, and customers can find and buy them more easily. Our marketplace would fill this gap while providing makers and artists with a larger audience and greater opportunities to expand their customer base, and customers with access to unique items that cannot be found elsewhere.

The market is growing and consumer trends indicate a shift towards sustainable, unique and handmade products. Additionally, with the current situation and more customers shopping online, it provides a great opportunity to create a successful online platform that meets these needs.

Finally, customers are willing to pay a premium for unique and quality handmade items. Our research shows that customers are willing to pay up to 20% more for such products. This indicates that there is an opportunity to generate significant revenue for our market.

Key Market Indicators:

  • TAM: billion
  • CAGR by 2025: 4.16%
  • Average transaction value:
  • Estimated transactions per month: 10,000
  • Sales cycle: no more than two weeks
  • DIY antactives in the United States: more than 36 million
  • 86% of respondents would use our platform to purchase handmade items
  • Customers willing to pay premium for unique and quality handmade items: up to 20%
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Business model

Our revenue model is transaction-based, taking a commission on every sale made on our platform. This is a standard practice for online marketplaces and ensures a sustainable source of income.

Our commission rate does not exceed 10% , which is favorable compared to our competitors. We believe our lower commission rate will attract more makers and artists to our platform.

Due to our commission rate, we expect revenue of million in our first year . We expect our revenue to increase steadily over the next several years as we continue to expand our platform and increase our customer base.

We provide premium services for customers looking for additional support, such as marketing and storefront customization, for which we charge an additional fee. These services represent an additional 20% of our expected revenue .

In addition to these revenue streams, we plan to feature sponsored content opportunities for makers and artists who want to further promote their products on our platform. This additional revenue stream will be introduced once we reach a stable user base.

Our main source of income will come from the sale of handmade items on our platform. Currently, we offer a wide range of products including jewelry, home accessories, art and clothing. As we grow, we plan to expand our product offerings to include other handmade merchandise and crafts.

Competition

In the arts, crafts and gifts market, we face competition from established players such as Etsy and Amazon Handmade. These platforms offer an impressive range of handmade items for customers and provide access to a large customer base for makers and artists. However, our market differs from these competitors in many ways.What makes us better:First, our marketplace provides educational content for our makers and artists. This means we empower our creators with the knowledge and tools to produce high quality, unique handmade items. By doing so, we ensure that customers receive consistent value when purchasing items on our platform. Second, our marketplace emphasizes community building, creating a network of dedicated makers, artists, and customers. We believe that creating a sense of community will lead to stronger relationships, repeat business and increased customer loyalty. This allows us to foster an environment in which manufacturers and customers can thrive.Our USPS:Our unique selling points include our educational content, community focus, and transaction-based revenue model, which allows makers and artists to keep more of their revenue. Additionally, we offer premium services such as marketing and window customization to help makers and artists grow their businesses.Who is stealing from our customers:Our competitors are our biggest threat. Etsy’s vast marketplace and Amazon’s deep pockets mean they have significant advantages over us. However, we intend to focus on building a more engaged and loyal customer base by emphasizing our community and unique features. Our marketplace aims to be a more focused and personal alternative to these giants, giving makers and artists the tools and community they need to succeed. In conclusion, we believe our educational content, community focus, and transaction-based revenue model will help us stand out in a crowded market. Our USPs are what sets us apart from our competitors, and we will continue to work towards building a platform that reinforces our unmatched value to manufacturers and customers.

Founding team

Our team in the arts, crafts and gifts market is made up of individuals with extensive experience in the technology, marketing and handmade industries. We strongly believe that our diverse experiences and skills make us the right team for the challenge of creating a successful online marketplace for makers and artists.

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First, our CEO has a proven track record of launching successful internet startups, having launched two companies that became industry leaders. With a master’s degree in business administration from a top university, he has the expertise and experience to develop and execute a successful business plan .

Our CMO brings over a decade of branding and storytelling experience to the team. His experience includes working with major global brands to develop their marketing and advertising campaigns. She plays a crucial role in shaping our brand identity and driving customer acquisition through targeted advertising and social media campaigns .

In addition to our core team members, we have also recruited a team of advisors and mentors with expertise in craft industry, technology and finance. Their insights and advice help us make informed decisions and mitigate risks as we navigate the complex landscape of online marketplaces .

Our team was formed with a clear purpose in mind – to create a centralized online platform for makers and artists to sell their unique and quality handmade items. We are passionate about empowering these artists and makers, giving them a platform to showcase their incredible talent to the world .

No team is perfect, and we recognize that there may be skills we lack. However, our extensive network of advisors and partners means we can leverage their expertise in areas where we lack. Additionally, we are committed to continuous learning and development, always seeking to improve our skills and knowledge in order to better serve our clients.

In summary, our team believes we have the right mix of experience, skill and passion to create a successful online marketplace for handmade items. We are committed to making the arts, crafts and gifts market a leader in the craft industry, and we are confident we have the right team in place to make this vision a reality.

Traction/milestones

Our pre-launch survey showed that 86% of respondents would use our platform to purchase handmade items. Additionally, we secured partnerships with over 100 makers and artists ahead of our official launch.

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Our platform is expected to go live within the next three months, and we have already secured a partnership with a leading online craft publication, securing a strong initial following. We plan to capitalize on this early traction by continuing to build our maker and artist community, engage customers through marketing campaigns, and offer educational content that helps suppliers and buyers.

One of our key metrics for growth is monthly active users. We expect this number to increase rapidly after our official launch, especially with the increasing demand for online shopping due to the Covid-19 pandemic.

  • We have set ambitious goals for our first year:
  • 10,000 active users in the first six months
  • 50,000 active users by the end of the first year
  • million in gross merchandise volume by the end of the first year

These milestones are well within our reach, given the size of the market and potential demand.

Additionally, we plan to monitor and adjust our customer acquisition fees to ensure it remains within a reasonable range and focus on increasing our conversion rates and retention through strategies personalized marketing and excellent customer service.

Overall, we are confident in our ability to execute and achieve significant traction over the coming months.

Fund raising

For our arts, crafts and gifts market, we are seeking million in seed funding to take our business to the next level. Our pre-launch survey showed that there is strong demand for our platform and we want to use this funding to develop additional features, improve the user experience and launch a robust marketing campaign that will attract new customers and manufacturers/ artists.

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We will allocate funding as follows:

  • 50% for product development: We will use this part of the funding to further develop our platform, introduce new features and improve the user experience.
  • 30% for marketing: To increase our brand awareness; We will use this portion of the funding to run extensive campaigns across social media and other digital platforms, SEO optimization, content marketing, and more.
  • 20% for team building: To grow our team of experts and bring on new technical and developer talent who will help us achieve our ambitious goals and scale the platform efficiently.

We are confident that with this funding we will achieve the following milestones:

  • Develop cutting-edge product features that will position our platform as the go-to choice for handmade craft buyers and sellers.
  • Grow our user base by signing up many new makers and artists.
  • Expand our product categories, providing our customers with a wider range of quality handmade items.
  • Develop a robust marketing strategy that will put our brand in front of new customers and show them the benefits of our platform over those of our competitors.

We believe that with this funding we will be well positioned to scale our business and become a household name in the arts, crafts and gifts market industry.

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