Digital Goods Marketplace Whop Raises $17 Million in Funding

While Amazon may have a stronghold on physical goods sold online, the market for digital goods is still ripe for competition. In this article, we’ll explore Whop, a new marketplace that connects buyers and sellers within the digital economy.

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Meet Whop’s Co-Founders

Whop’s co-founders are Steven Schwartz, Cameron Zoub, and Jack Sharkey. They met when they were 13 years old in a Facebook group over their shared interest in limited-edition sneakers. Together, they launched one of the first "sneaker bots" – software to get shoes before they sold out – and used the profits to bootstrap the creation of more software to sell online.

From Sneaker Bots to Digital Marketplaces

After teaming up with Sharkey, a software developer, to build products for small businesses, Zoub and Schwartz created a makeshift marketplace where people could buy software – and sell their own – for free. However, scammers overran the platform, leading them to start working on an improved version of the marketplace, which eventually became Whop.

"We’re creating a new economy, giving people new things to sell," Schwartz said in an email interview with TechCrunch. "We see ourselves as competing with social media, where people have traditionally gone to sell their software, but suffer through an incredibly suboptimal experience."

What Makes Whop Different?

Given the numerous marketplaces available today, one might wonder what sets Whop apart from the rest. According to Schwartz, it’s the selling experience and product discovery engine that differentiate Whop.

"Sellers on Whop get a dashboard with promotion and customer relationship management tools as well as analytics for business insights," Schwartz explained. "As for buyers, they’re treated to a recommendation algorithm, visualizations for discovering new products, and a portal for managing their purchases."

Whop’s Focus on Influencers and Content Creators

Whop is targeting a different audience than your typical marketplace: influencers and content creators. "We have loads of runway," Schwartz said. "The pandemic and slowdown in tech have been incredible for us; the slowdown in venture in particular has resulted in numerous small-scale, cash-focused products, which is exactly what our product supports."

Funding and Future Plans

Whop has already seen significant traction, with $456M in transactions to date. With their latest funding round, they’re well-equipped to continue expanding their platform.

"We have loads of runway," Schwartz said. "The pandemic and slowdown in tech have been incredible for us; the slowdown in venture in particular has resulted in numerous small-scale, cash-focused products, which is exactly what our product supports."

Conclusion

While Amazon may dominate the physical goods market, Whop is poised to make a significant impact on the digital economy. With its unique selling experience and focus on influencers and content creators, Whop is well-positioned to become a major player in the world of e-commerce.