Business 4 min read By Bethany Hadley
Whatnot Co-Founder Says Fast Pivot Built $20 Billion Business
Grant LaFontaine, co-founder of Whatnot, has explained how abandoning an early business idea he now describes as horrific led to the creation of a live shopping platform valued at $20 billion, arguing that rapid pivots are essential for start-up survival.
Grant LaFontaine, co-founder of the live shopping platform Whatnot, has said that his company's early business idea was «horrific» and that abandoning it quickly was the right decision. That pivot ultimately led to the creation of a business now valued at $20 billion, making Whatnot one of the most valuable privately held companies in the consumer internet sector.
LaFontaine's account of the company's early missteps highlights a recurring theme in the technology industry: the willingness to discard a failing concept before it drains resources and momentum. According to the co-founder, the original idea did not work, and the team recognised that continuing with it would have been a mistake. Instead of persisting, they moved on to a different model that eventually became Whatnot, a platform that allows users to buy and sell collectibles through live video auctions.
The scale of Whatnot's current valuation places it among a small group of start-ups that have reached a $20 billion mark without going public. The company operates in the competitive e-commerce and social commerce space, where live streaming, community engagement and real-time transactions are increasingly seen as growth areas. Its rise reflects broader investor appetite for platforms that combine entertainment with retail, particularly in categories such as collectibles, trading cards and fashion.
LaFontaine's comments also serve as a case study in the value of rapid experimentation. In the start-up world, founders are often encouraged to persevere with their initial vision, but the Whatnot example suggests that knowing when to walk away can be just as important as commitment. The decision to pivot early allowed the team to redirect its energy and capital towards a concept with clearer demand and a more defensible market position.
The story of Whatnot's transformation comes amid wider scrutiny of how technology companies are valued and how founders manage the pressure of building at scale. While a $20 billion valuation signals confidence from investors, it also raises expectations for revenue growth, user retention and eventual profitability. The company has not disclosed detailed financial figures, and it remains private, meaning its valuation is based on funding rounds rather than public market trading.
For the British business audience, the Whatnot case illustrates several familiar dynamics. The UK has its own growing live commerce and resale sectors, with platforms targeting collectors and niche communities. The ability to pivot quickly is particularly relevant for smaller firms that cannot afford to sustain a failing product line for long. Investors in London and across Europe have shown increasing interest in social commerce models, although the market remains less developed than in the United States and Asia.
LaFontaine's willingness to describe his own company's earlier idea in blunt terms is unusual for a founder, but it reinforces the message that failure and reinvention are normal parts of building a business. The $20 billion valuation is the outcome, but the more instructive part of the story may be the decision-making process that preceded it. As competition in live shopping intensifies, Whatnot's ability to adapt again could determine whether it justifies that price tag in the years ahead.
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