Etsy Launches IPO, Scores $1.78B Evaluation with Social Mission as Key Business Strategy - The Minute

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Etsy Launches IPO, Scores $1.78B Evaluation with Social Mission as Key Business Strategy - The Minute

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Certified B Corp @Etsy launches IPO while maintaining commitment to social mission http://3bl.me/ph7ra8 via @3BLmedia #CSRminute

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Monday, April 20, 2015 - 4:30pm

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The question about bottom line results in companies that try to balance profits with a social mission just got a $1.78 billion answer. That’s the evaluation of Etsy, the online seller of artisan goods and a certified B Corp company, after launching an IPO late last week on NASDAQ. Shares closed at $30 dollars, almost twice their initial price of $16 dollars. In an unusual IPO restriction, Etsy capped the value of stock that investors could buy at $2,500, to give access to as many investors as possible, including the small businesses that market their products through Etsy. Certified B Corp status is earned by following ESG guidelines set by B Lab, a nonprofit organization. Etsy’s B Corp practices include offering employees stock options and paid volunteer time, paying part-time workers fees that are 40 percent above local living wages, and teaching local women and minorities programming skills.

The financial results have been impressive. Sales rose 56 percent last year over the previous year, to $195 million dollars. Like many online startups, Etsy booked a small loss last year—$15 million—but the almost $2 billion of public investment is a major vote of confidence in its innovative business model.

I’m John Howell for 3BL Media.

Video source: Etsy Launches IPO, Scores $1.78B Evaluation with Social Mission as Key Business Strategy

Keywords: 3bl media llc | Sustainable Finance & Socially Responsible Investment | B Corp | Business Ethics | CSR Minute | Innovation & Technology | Responsible Business & Employee Engagement | Responsible Production & Consumption | Socially Responsible Investing | Sustainable Investment | etsy

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