The live-shopping app Whatnot is in negotiations to increase its valuation to almost $20 billion.

      The startup, which offers a range of products from sneakers to sports cards through livestreaming, is looking to raise funds again just a year after an $11.5 billion funding round, as live commerce gains traction in the West. Whatnot, the platform that facilitates livestream shopping where hosts sell sneakers, trading cards, and vinyl records to a live audience, is in discussions to secure capital at a valuation of around $20 billion. This figure would nearly double the company’s previous worth of $11.5 billion, which was only recorded late last year.

      The rapid increase in valuation is noteworthy; a nearly twofold rise in less than a year positions Whatnot among the fastest-growing consumer startups, especially during a period when venture capital has predominantly flowed into artificial intelligence instead of shopping applications.

      Whatnot conducts live video auctions and sales in various categories, from fashion to collectibles, taking a commission on each sale, transforming online shopping into an entertainment experience. The mechanics themselves add to the attraction: a host presents an item, and buyers can bid or click to purchase in real time, creating urgency through live sales, countdowns, banter, and scarcity—elements that a static product page can’t replicate.

      The figures are substantial. The company reports handling approximately $8 billion in livestream sales over the past year across North America and Europe, a volume that justifies, at least to its investors, a valuation typically associated with software companies.

      The list of investors reads like a who's who in the industry. Andreessen Horowitz, Sequoia, Lightspeed, and Google's CapitalG have all invested in Whatnot, names that are known for pursuing significant funding rounds in technology, now wagering that live commerce is more than just a passing trend.

      While the concept isn't new, it is only now gaining traction in the West. Livestream shopping has thrived in China for years, with platforms such as Taobao transforming hosts into salespeople for millions of viewers, and Western investors have been patiently waiting for the trend to make its way over.

      Whatnot believes the moment has finally arrived. The company has focused on niche communities, catering to collectors and resellers for whom a live auction serves as both a marketplace and a social experience, rather than trying to be an all-encompassing store.

      Additionally, it has begun to enhance its capabilities. This month, Whatnot acquired Shaped, a startup that develops real-time recommendation systems, aimed at guiding viewers towards the streams and items that are most likely to engage their spending.

      This acquisition indicates where the new funds would be directed. A larger fundraising endeavor would support the development of the recommendation engine, aid expansion in Europe, and bolster its competition for hosts and buyers against social platforms competing for similar behavior.

      Because competition is on the horizon. TikTok, Instagram, and Amazon have all ventured into live and social shopping, and while Whatnot’s independence provides an advantage as a specialized platform, it is also a potential weakness against much larger competitors.

      As of now, the valuation remains a topic of discussion rather than an official offer. Business Insider refers to it as a round currently being negotiated, and startup valuations can fluctuate significantly before agreements are finalized, especially in a selective market.

      Nevertheless, the trend is indicative. That investors would assign a $20 billion valuation to a shopping app in a year when nearly all major investments have favored AI suggests that live commerce has moved from trial to recognized category.

      It also highlights what it is not. In a funding landscape focused on AI models and infrastructure, Whatnot serves as a reminder that a consumer business that generates genuine transactions can still achieve a software-sized valuation, granted that growth is present.

      The risk remains one that every marketplace encounters. Whatnot's value hinges on maintaining the connection between hosts and buyers on its platform, and this loyalty can quickly diminish if a larger competitor offers better conditions or access to a larger audience.

      At present, the momentum lies with the company. A valuation nearing $20 billion would affirm that livestream shopping has truly made its mark in the West, and that Whatnot, for the time being, is the name investors are keen to support.