Insight
Blachman: Raising $1B limits e-commerce exits exclusively to IPOs
“The options available for you as a company in e-commerce is really just one, and that's to go public at some point. There aren't a lot of acquirers out there that can, they can you know, create, create success.”
Assertion Not checkable as stated
Tophatter attracts millions of daily active consumers
“But now today we've got, you know, millions of consumers coming every day.”
Prediction Not checkable as stated
Blachman: Tophatter will hit $300M-$400M GMV and $80M-$100M revenue in 2017
“So this year we'll do somewhere between three and four hundred million dollars of Gross transactions and our take be between an 80 and a hundred million.”
Disclosure
Blachman: Tophatter operates at breakeven to maximize growth
“We essentially are operating at breakeven pace in order to grow as fast as we can.”
Prediction Didn’t hold up
Blachman: Tophatter will reach $1B+ in top-line revenue within a few years
“And we think that within a few years, you know, this is at least a billion dollar top line business.”
Insight
Blachman: Non-incremental 10x marketing jumps destroy e-commerce unit economics
“We pour all of the contribution back into more marketing so that we grow our marketing spend But we do it incrementally instead of in one fell swoop, because if you do it in one fell swoop, there's no way the economics are going to hold.”
Assertion Not checkable as stated
Blachman: Tophatter averages a 25% take rate
“So it varies based on the category and the seller, but on average, our take rate is about 25%.”
Assertion Not checkable as stated
Tophatter items sell for an average price of $10 to $20
“But on average, we're about 10 to 20 bucks, and we do about a million transactions, sorry, a million dollars of volume a day.”
Assertion Not checkable as stated
Blachman: Tophatter runs at an 80% gross margin
“So our gross margin on the 80 to a hundred is about 80%.”
Assertion Not checkable as stated
Blachman: Tophatter achieves marketing payback within 30 to 60 days
“So we actually end up getting payback on our marketing spend usually within about. 30 to 60 days.”
Assertion Not checkable as stated
Blachman: Facebook is Tophatter's largest and most efficient acquisition channel
“So our biggest channel is Facebook. Because again, what we do is a hundred percent mobile and Facebook is the best, most efficient channel to acquire users for us.”
Assertion Not checkable as stated
Blachman: Tophatter has doubled its business every year since 2012 launch
“We launched the product in 2012. So this is our sixth year. And we've essentially doubled the business every year since we started.”
Disclosure
Blachman: Tophatter has raised $35M total, including a recent $21M round
“So to date we've raised thirty-five million and most recent round was twenty-one million dollars that was really Once the company, you know, the company's been profitable, as I mentioned, been sort of operating at breakeven, and we raised 20, twenty one millio…”
Assertion Not checkable as stated
Tophatter holds over $30M cash in the bank
“We've got, you know, over thirty million dollars of cash in the bank today and we can spend aggressively.”
