It's been an upsetting year for investors. While some have lost confidence in specific sectors of the stock market, some markets have flourished. The recent pandemic has taken its toll on business profitability in areas where mandatory shutdowns have driven restaurants and many small businesses out of operation. While speculation has caused some stocks to plummet. There have been ups and downs with a few sunnier outlooks shared for some sectors of the market. We look to the investments that offer the lowest risk with the best projections for a rebound, and in some cases, to new startups showing promise for future high ROIs. Creative Fabrica is one such company that merits a closer look.
What is Creative Fabrica?
According to Techcrunch, Creative Fabrica is an online marketplace established to supply crafters with digital files for their endeavors. The startup is based in Amsterdam. Co-founders Anca Stefan and Roemie Hillenaar previously ran a digital agency. The pair determined that a digital company offering tools for creating word art and fonts would be well-received by consumers. The business expanded into an online marketplace that also provides views of finished products with a subscription service for its Craft Club.
What makes Creative Fabrica so special?
Creative Fabrica offers digital files that make the projects for crafters easier. It's a one-stop-shop for subscribers to find tools for crafting, instructions, unique designs, and a marketplace to advertise and sell the finished products. The business continues to expand to include more tools and downloadable patterns that are currently in demand with their clientele. Many of the patterns and tools are hard to find in a digital format. Creative Fabrica charges subscription fees along with charging for advertising and sale of handmade craft products on its marketplace. It keeps fifty-percent of the profits. The company currently has over a million users on its site throughout the world. Approximately 35 percent of them sell the crafts they make. This translates into a sizable amount of revenue for Creative Fabrica. Most subscribers are from the United States with others from Australia, Canada, and the United Kingdom. All digital assets sold result in a 50 percent profit per download for Fabrica. The business has two ways of turning a profit. Creators of the digital property received payment for the downloads at the end of their subscription periods. New verticals for the site are decided on by the consumer demand. Many of the graphics are made to work with popular machinery and equipment owned by crafters who are subscribers.
Creative Fabrica's success
Crunchbase reports that Creative Fabrica has been in business since 2016. The company is a privately owned for-profit business That has received $7 million in a round of Series A funding with a total of 405 investors backing the company. Pitchbook confirmed that the latest round in the Series A venture capital round yielded funds in the amount of 6.94 million from 3 investors led by Felix Capital, FJ Labs, and Peak Capital with undisclosed individual amounts. The founders shared that their goal is to continue to expand their online marketplace to include a holistic perspective that caters to the whole of creative crafting for its consumers. The Early Stage Venture capital round closed in January of 2021, following a Seed round in January of 2019. The co-founders believe that crafters do not limit themselves to one specific genre within the gamut of crafts. Exposure to other verticles is likely to result in multiple sales and business transactions from every single subscriber.
Expanding to reach new horizons
Tech EU reports that Creative Fabrica has the goal of expanding the reach of its services beyond typical marketing needs. They plan to include mainstream products as well as verticals within other unique areas to cover a broad spectrum of interests encapsulated in one convenient place. It's slated to become a leader in the new market that is referred to as the Passion Economy. So far, Creative Fabrica has sold its digital downloads in more than 175 countries throughout the world.
The expansion of this already successful business could not have come at a more opportune time. With the pandemic raging and forcing millions to remain in their homes, or out of work because of business closures, the outlook for more people to get into crafting activities is excellent. People are looking for something to do with the extra time that they have on their hands. We're nearly a year into the rash of stay at home orders and diminished employment because of the restaurant and other recreational business shutdowns or restrictions. People who already have crafting skills are expanding their businesses to bring in extra revenue. Those who are just getting into the various crafts are beginning to sell their products for the same reasons. These factors all combine to work in Creative Fabrica's favor.
Creative Fabrica has only been in business since 2016. Since that time, venture capital fundraising rounds have brought in an incredible $7 million in seed and early-stage investment in the startup. The co-founders happen to be in the right place at the right time for the expansion of the company. If you're eyeing potential investments for the future, Creative Fabrica is certainly one to keep our eye on. With over a million subscribers currently, the business is likely going to continue to grow. The increasing instability of jobs worldwide is pushing consumers to find other sources of personal enjoyment in the form of hobbies. Many will turn these hobbies into retail businesses. Creative Fabrica is set up to provide the necessary tools and resources to help them get started and to market their finished products. This well-thought-out venture could become one of the largest of its kind in the world if it continues on its current trajectory. Creative Fabrica is a company to at least keep on your radar.
Written by Allen Lee
Read more posts by Allen Lee