Etsy, Inc.
Company History
Etsy History: Founding, Growth & Key Milestones
Founded 2005 in Brooklyn, New York
When was Etsy founded?
Etsy was founded in 2005 in Brooklyn, New York by Robert Kalin, Chris Maguire, Haim Schoppik and Jared Tarbell, making it 21 years old.
- Founded
- 2005
- Founding place
- Brooklyn, New York
- Founders
- Robert Kalin, Chris Maguire, Haim Schoppik and Jared Tarbell
- Headquarters today
- Brooklyn, New York
- Milestones documented
- 15 (2005–2025)
- Current CEO
- Kruti Patel Goyal
- Acquisitions
- 4
| Year | Event |
|---|---|
| 2005 | Etsy Launches from Brooklyn Apartment |
| 2007 | Series A Funding from Union Square Ventures |
| 2008 | Accel Partners Investment and Founder Departures |
| 2009 | Kalin Returns as CEO; Chad Dickerson Joins as CTO |
| 2012 | B Corp Certification |
| 2015 | IPO on NASDAQ at $16 Per Share |
| 2016 | Acquisition of Blackbird Technologies for $32.5 Million |
| 2017 | Josh Silverman Becomes CEO; Revenue Turnaround Begins |
| 2019 | Acquisition of Reverb for $275 Million |
| 2020 | COVID-19 Pandemic Drives Explosive Growth |
| 2021 | Acquisitions of Depop and Elo7 for $1.84 Billion Combined |
| 2022 | $1 Billion Asset Impairment Charge |
| 2023 | Sale of Elo7 and 11% Workforce Reduction |
| 2024 | Revenue Growth Slows to 2.2%; Seller Setup Fee Introduced |
| 2025 | Sale of Reverb; Depop Sale Agreement; CEO Transition |
- Where was Etsy founded?
- Etsy was founded in Brooklyn, New York in 2005.
- Who founded Etsy?
- Etsy was founded by Robert Kalin, Chris Maguire, Haim Schoppik and Jared Tarbell.
- When did Etsy start?
- Etsy was founded in 2005.
- How old is Etsy?
- Etsy is 21 years old as of 2026.
Founding Story
In 2005, Rob Kalin was a struggling carpenter in Brooklyn trying to sell a wooden computer case he had built. He realized there was no good place on the internet for artisans to sell their goods; eBay felt like a cheap garage sale. He and two friends spent two and a half months writing the code for a new website. They called it 'Etsy' (supposedly based on a phrase Kalin misheard in an Italian movie). They launched the site specifically targeting the burgeoning online crafting community, instantly creating a large digital haven for independent creators.
Founders
Robert Kalin
Etsy possesses a well-known, specific founding story, rooted not in global ambition, but in the niche, frustrated 'maker' community of Brooklyn, New York. The company was founded in 2005 by Rob Kalin, an eccentric, anti-corporate 25-year-old carpenter and amateur photographer, along with his friends Chris Maguire and Haim Schoppik. Kalin was frustrated with the existing e-commerce options. He wanted to sell a wooden computer case he had built, but he felt that selling it on eBay (which was heavily dominated by liquidators and electronics) destroyed the artistic integrity of his work. He wanted a curated, digital craft fair. Working out of a small apartment in Brooklyn, the three founders built the foundational code for Etsy in exactly two and a half months. The foundational key move of Etsy was not the technology, but the aggressive grassroots marketing. Kalin heavily utilized the engaged 'crafting' forums (like getcrafty.com) to directly recruit the very first sellers. The platform gained immediate cult status among women who made jewelry, knitting, and vintage clothing. However Kalin was an artist, not a corporate CEO. As the company scaled, it suffered internal cultural clashes between the 'anti-capitalist' artisans and the venture capitalists funding the growth. Kalin was eventually ousted, and under subsequent, disciplined leadership (specifically Chad Dickerson and later Josh Silverman), the company transformed the chaotic energy of the Brooklyn craft movement into a profitable, publicly traded Wall Street leader. (Exact birth year remains publicly undisclosed).
Chris Maguire
Chris Maguire earned a BA in Art, Computer Science & Animation from NYU. He was the primary developer who built Etsy's backend systems, database architecture, and original marketplace functionality. Working alongside Haim Schoppik, he essentially moved into Kalin's apartment for six weeks to launch the site. After departing Etsy in 2008, he founded Waffl, a community marketplace for innkeepers, and Postling, a social media management tool. In a 2015 interview, when asked if he missed Etsy, he replied: 'No. Etsy was a fascinating community to build for and grow alongside, but the working environment was not something I've ever felt wistful about.' (Exact birth year remains publicly undisclosed).
Haim Schoppik
Haim Schoppik was a web developer who met Robert Kalin through GetCrafty.com. He left NYU before graduating to build Etsy full-time. Along with Chris Maguire, he handled the software development and technical infrastructure while Kalin focused on vision and community. Schoppik and Maguire's departure in August 2008 marked the end of the original technical team. In their farewell blog post, they wrote: 'The last three years have undoubtedly been the longest and most eventful of our lives. We'd like to thank each and every one of you for enabling us to build Etsy into what it is today.' After Etsy, he joined Waffl as CTO. (Exact birth year remains publicly undisclosed).
Jared Tarbell
Jared Tarbell co-founded Etsy in 2005. As a highly skilled programmer, he wrote the early core architecture of the site alongside Rob Kalin and Chris Maguire. Tarbell specifically championed the platform's community-driven aesthetic and creator-friendly ethos, helping Etsy rapidly gain traction among crafters who were deeply alienated by the hyper-commercialization of eBay. He left the company in its early stages. (Exact birth year remains publicly undisclosed).
Key Milestones
Etsy Launches from Brooklyn Apartment
Robert Kalin, Chris Maguire, and Haim Schoppik built and launched Etsy in June 2005 from a Brooklyn apartment. The first item sold on the fourth day. By mid-2006, the platform had 10,000 sellers and 40,000 buyers with zero advertising spend.
Source: en.wikipedia.orgSeries A Funding from Union Square Ventures
Etsy raised approximately $615,000 in a funding round led by Union Square Ventures, with Fred Wilson joining the board. The valuation reached approximately $10.7 million by November 2006. This was the first institutional capital after initial angel funding of approximately $193,000.
Source: en.wikipedia.orgAccel Partners Investment and Founder Departures
In January 2008, Etsy raised $27 million from Accel Partners and Jim Breyer at a valuation just under $100 million. In August 2008, both technical co-founders Chris Maguire and Haim Schoppik departed, and then-CEO Robert Kalin stepped down for the first time. Maria Thomas was promoted from COO to CEO.
Source: en.wikipedia.orgKalin Returns as CEO; Chad Dickerson Joins as CTO
Robert Kalin returned as CEO in December 2009 after Maria Thomas's brief tenure. Chad Dickerson, recruited from Yahoo, joined as CTO in September 2008 to professionalize the company's technical infrastructure. Kalin was fired for the final time in July 2011, and Dickerson became CEO.
Source: en.wikipedia.orgB Corp Certification
Etsy became a certified B Corporation in 2012, recognizing its commitment to social and environmental responsibility alongside profits. This made it one of the first major tech companies to pursue this certification, aligning with its mission to 'Keep Commerce Human.'
Source: en.wikipedia.orgIPO on NASDAQ at $16 Per Share
Etsy went public on April 16, 2015, pricing shares at $16 each and raising $267 million. The stock surged 88% on the first day of trading to $30.01, giving the company a market capitalization of $3.4 billion. The IPO valued the company at $1.8 billion at the offer price.
Source: en.wikipedia.orgAcquisition of Blackbird Technologies for $32.5 Million
Etsy acquired Blackbird Technologies, an AI startup, for $32.5 million to enhance its search and recommendation capabilities. This technology now powers Etsy's machine learning engine for personalized product discovery across 100 million+ listings.
Source: en.wikipedia.orgJosh Silverman Becomes CEO; Revenue Turnaround Begins
In May 2017, board member Josh Silverman replaced Chad Dickerson as CEO after a first-quarter loss and a 8% workforce reduction. Silverman, former CEO of Skype and president at American Express, refocused the company on core marketplace growth and profitability. Revenue was $441.1 million in 2017.
Source: en.wikipedia.orgAcquisition of Reverb for $275 Million
In July 2019, Etsy acquired Reverb, a marketplace for new, used, and vintage musical instruments, for $275 million in cash. Reverb was founded in 2013 by David Kalt and had surpassed $1 billion in total sales by 2017. Etsy viewed it as a natural extension of its mission to 'keep commerce human.'
Source: en.wikipedia.orgCOVID-19 Pandemic Drives Explosive Growth
Etsy experienced growth during the COVID-19 pandemic as consumers turned to handmade goods, personalized items, and face masks. Gross merchandise sales more than doubled year-over-year to $10.3 billion. Face mask sales alone reached $346 million in Q2 2020. Active buyers surged from 46.3 million in 2019 to 81.8 million in 2020.
Source: en.wikipedia.orgAcquisitions of Depop and Elo7 for $1.84 Billion Combined
In June 2021, Etsy acquired Depop, an U.K.-based fashion resale app targeting Gen Z, for $1.625 billion. In July 2021, it acquired Elo7, the 'Etsy of Brazil,' for $217 million. Both acquisitions were made at peak tech valuations and later proved problematic. Depop had 55.6 million registered users and Elo7 had 1.9 million active buyers at acquisition.
Source: en.wikipedia.org$1 Billion Asset Impairment Charge
Etsy recorded $1.0 billion in asset impairment charges, including $897.9 million for Depop and $147.1 million for Elo7, reflecting the decline in valuations and performance of its 2021 acquisitions. The company also raised its transaction fee from 5% to 6.5% in April 2022, triggering a seller strike.
Source: en.wikipedia.orgSale of Elo7 and 11% Workforce Reduction
In July 2023, Etsy sold Elo7 to Brazilian marketplace Enjoei for an undisclosed amount, likely at a loss. In December 2023, the company laid off 225 employees (11% of its workforce) due to challenging macroeconomic conditions and flat gross merchandise sales since 2021. CMO Ryan Scott and CHRO Kimaria Seymour departed.
Source: en.wikipedia.orgRevenue Growth Slows to 2.2%; Seller Setup Fee Introduced
Etsy reported revenue of $2.81 billion in 2024, up just 2.2% from 2023, the slowest growth rate since the IPO. The company introduced a seller setup fee in early 2024 to improve listing quality, which initially caused a seller purge before retention inflected positively in late 2024. Net income was $303.3 million.
Source: en.wikipedia.orgSale of Reverb; Depop Sale Agreement; CEO Transition
On June 2, 2025, Etsy completed the sale of Reverb to Creator Partners and Servco Pacific. On February 18, 2026, the company announced an agreement to sell Depop to eBay for $1.2 billion in cash. Revenue reached $2.88 billion, up 2.7%, but net income fell 46.3% to $163.0 million. Kruti Patel Goyal became CEO on January 1, 2026, replacing Josh Silverman, who transitioned to Executive Chair.
Source: en.wikipedia.orgMajor Acquisitions
Blackbird Technologies
2016Etsy acquired Blackbird Technologies, an AI startup, for $32.5 million to enhance its search and recommendation capabilities. The technology powers Etsy's machine learning engine for personalized product discovery, improving conversion rates and buyer engagement across 100 million+ listings.
Reverb Holdings, Inc.
2019Etsy acquired Reverb, a marketplace for new, used, and vintage musical instruments, for $275 million in cash. The acquisition was intended to extend Etsy's marketplace playbook into a vertical category with passionate buyers and sellers, similar to Etsy's own community. Reverb had surpassed $1 billion in total sales since its 2013 launch.
Depop Limited
2021Etsy acquired Depop, an U.K.-based mobile-first fashion resale marketplace targeting Gen Z and Millennial consumers, for $1.625 billion primarily in cash. The acquisition was intended to expand Etsy's reach into high-frequency apparel resale and attract younger demographics. At acquisition, Depop had 55.6 million registered users, including 26 million active users, and 90% of its users were under 26.
Elo7 Serviços de Informática S.A.
2021Etsy acquired Elo7, the 'Etsy of Brazil,' for $217 million to establish a foothold in the Latin American e-commerce market, projected to reach $29 billion in 2021 with 26% annual growth. At acquisition, Elo7 had 1.9 million active buyers, 56,000 active sellers, and 8 million mostly made-to-order items.
Keep researching Etsy
Etsy Company History FAQ
When was Etsy founded and where was its original office located?
Etsy was founded in June 2005 in Brooklyn, New York, by Robert Kalin, Chris Maguire, Haim Schoppik, and Jared Tarbell. Its original office was a loft apartment in Brooklyn where the founders hosted artisan craft nights while coding the platform.
When did Etsy achieve certified B Corporation (B Corp) status?
Etsy became a certified B Corporation in May 2012, demonstrating its commitment to high standards of social and environmental performance, transparency, and accountability to employees, community, and the environment alongside financial shareholders.
When did Etsy complete its initial public offering on the NASDAQ?
Etsy completed its initial public offering on Nasdaq on April 16, 2015, pricing shares at $16 and raising about $267 million, which valued the company at roughly $1.8 billion. Its shares now trade on the NYSE under ETSY.
What major leadership and strategic pivot occurred at Etsy in May 2017?
In May 2017, amid activist shareholder pressure, the Board appointed Josh Silverman as CEO. Silverman executed a disciplined operational turnaround, raised seller transaction fees, overhauled search and discovery algorithms, and turned Etsy into a highly profitable growth engine.
When was Etsy added to the benchmark S&P 500 stock index?
Etsy was officially added to the prestigious S&P 500 index in September 2020, replacing Tiffany & Co., reflecting Etsy's rapid market capitalization growth, strong profitability, and essential position in modern digital commerce.
How did Etsy migrate its entire marketplace infrastructure to Google Cloud?
Between 2018 and 2020, Etsy executed a complete cloud migration, moving its large monolithic on-premises data center infrastructure to Google Cloud Platform. This reduced energy consumption, boosted platform reliability, and enabled scalable machine learning for search.
When did Etsy acquire Gen Z fashion marketplace Depop?
Etsy completed its $1.625 billion acquisition of London-based Depop in July 2021. It later sold Depop to eBay, closing the deal on July 30, 2026.
What major product innovation did Etsy launch in 2024 to reinvent gift shopping?
In January 2024, Etsy launched 'Gift Mode,' an AI-driven, bespoke shopping experience combining machine learning persona matching with human curation to establish Etsy as the global destination for personalized gift-giving.
How did Etsy start?
Etsy was founded in 2005 in a Brooklyn apartment by Rob Kalin, Chris Maguire, and Haim Schoppik. Kalin, a freelance web designer and amateur woodworker, was deeply frustrated that there was absolutely no good website to sell his handmade wooden computers, so he coded the first version of Etsy in two months.
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