Quirky Raises $68M
Quirky is a startup that creates idea for consumer products submitted by investors. The company has raised $68 million as they prepare to expand into new products and countries. New York-based Quirky is now valued at over $150 million. This investment is being led by Facebook investor Andreessen Horowitz and Kleiner Perkins. Other investors that participated in this round include Norwest Venture Partners and RRE Ventures. Kleiner Perkins partner Mary Meeker and Andreessen Horowitz partner Scott Weiss are joining Quirky’s board of directors.
Quirky works with the online community to select and refine ideas to turn them into marketable products. Every week the company will choose the best submitted ideas through the Internet and the ideas will be fine-tuned by the website’s 250,000 members along with their own product experts. Some of Quirky’s product experts have worked at P&G, Target, Royal Philips, Staples, etc.
Quirky has launched over 200 products since it was founded in 2009. Some of their best sellers include a power strip, electronics-cable organizers, and crate-storage systems. Quirky owns the product ideas and then pays royalties to inventors. The average product has around 800 contributors. Last year Quirky paid around $600,000 in royalties and it is expected to triple this year. Quirky said that a lot of their members made $10,000 last year and one even earned higher than $100,000. In 2010 Quirky had around $1 million in revenues and last year sales rose to $7 million.