Whatnot targets $20 billion valuation in new funding talks

The round is in progress, and details could change. Whatnot did not respond to requests for comment.

Inspired by the large Chinese live shopping industry, Whatnot has built a following among collectors who use the platform to interact and purchase products. The format is already massive in Asia, generating hundreds of billions of dollars in annual sales. It has been slower to catch on in the West, but platforms like TikTok Shop have helped normalize buying through social media and live video, giving Whatnot a tailwind.

Consumer internet startups have struggled to attract venture capital amid the AI boom, as much of the industry's money chases foundation models, chips, and infrastructure. Whatnot's potential valuation jump could signal that investors still have appetite for consumer startups with rapid revenue and user growth, the people said.

The Los Angeles-based startup is backed by Andreessen Horowitz, Capital G, Sequoia Capital, and Lightspeed Venture Partners.