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The Q2 Marketplace & E-commerce report highlights the growing trend of marketplaces catering to luxury goods, both digitally native new market entrants and legacy luxury suppliers turning to technological solutions

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Marketplaces: The New Home for Luxury Goods: Q2 2021 Marketplace & E-commerce Review

Contact: John F Lambros

EXECUTIVE SUMMARY

Marketplace & E-commerce Sector Wrap-Up

  • The Q2 Marketplace & E-commerce report highlights the growing trend of marketplaces catering to luxury goods, both digitally native new market entrants and legacy luxury suppliers turning to technological solutions
    • As consumer confidence in online transactions grows, marketplaces that have pursued high AOV markets have succeeded, such as 1stDibs which IPO’d this quarter
    • Catalyzed by the pandemic, legacy luxury goods marketplaces, such as the premier auction houses, have turned to software solutions, bringing increased momentum to companies like GCA client LiveAuctioneers, which merged with competitor ATG this quarter
  • The momentum in the IPO market continued in Q2 2021 from its hot pace in Q1 with recent IPOs including 1stDibs, Legal Zoom, and Zomato
    • SPAC transactions have also continued to be active with ticketing marketplace VividSeats and wholesale marketplace Boxed among announced SPAC transactions in the quarter
  • The M&A market has been extremely active in Q2 with 21 significant M&A transactions across the segment seen in Q2 2021 including:
  • Massive financing rounds supporting companies that thrived during 2020 have continued, including for private funding leaders:
    • Carro raised $360 MM led by SoftBank
    • Vinted raised $303 MM led by EQT
  • In the public markets, all groups comprising the Marketplace & E-commerce ecosystem have seen increased share pricing YoY, led by the Travel grouping as they come out of COVID
  • We are seeing strong valuations across the ecosystem as well, led by the Payments sector with a median multiple of 30.6x 2021E EBITDA
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