by Chelsea Mozen

Mar 29, 2023

At Etsy, our mission to Keep Commerce Human means uplifting communities and advancing meaningful change, both inside and outside our marketplace. Today, we’re excited to announce two major updates in our impact work that further our goals to run a long-term sustainable business and help to open doors for creative entrepreneurs and our communities in 2023 and beyond.

Etsy Uplift Fund - Fueling the creative economy

In 2021, we launched the Etsy Uplift Fund, which supports nonprofits that work to lower barriers to entrepreneurship and creates opportunities for economically disenfranchised communities. In addition to Etsy’s contributions to the fund, we’ve been especially moved by our buyers’ excitement to support small businesses – in 2022 alone, U.S. buyers elected to donate the change on their orders more than 6.4 million times. This enabled us to distribute approximately $2.5 million in grants last year. This year, we’re excited to deepen our impact by partnering with four organizations specifically focused on connecting creative entrepreneurs with tools and resources that will help their businesses thrive.

  • We’re working with Grameen America to provide digital business education training and financial services that will help entrepreneurs, including small makers of handcrafted products, run and grow their businesses. Over the next two years, Etsy and Grameen America are aiming to expand access to ecommerce knowledge and tools for hundreds of creative entrepreneurs across the U.S. through this program.
  • We’re also partnering with AltCap to provide microloans for artists and creative entrepreneurs in America’s Heartland, particularly to makers from Kansas, Missouri, and Texas.
  • Through our partners Hello Alice and the Global Entrepreneurship Network (GEN), microbusiness owners can apply to receive grants between $5,000 and $25,000 via the Small Business Growth Fund to help their business grow. The first round of applications for this program is open through April 21, 2023.

Investing in our communities - introducing Etsy’s Impact Investment Fund

We’re thrilled to share that Etsy will allocate $30 million of our cash holdings towards an impact investment fund, which will enable us to use capital to expand our efforts to foster economic empowerment and promote sustainability. Etsy’s investments through this fund align with our impact goals to help accelerate the development of the creative economy, support financially underserved communities, and promote environmental sustainability.

Etsy has partnered with ImpactAssets Capital Partners, a wholly owned subsidiary of ImpactAssets, to create a portfolio where our capital investments will drive a meaningful positive impact. We’ve deposited $30 million for this program at City First Bank, one of the largest Black-led Minority Depository Institutions in the nation. With 80% of their loans going to low-wealth communities, City First has a strong track record of combating historic inequities and opening doors for entrepreneurs from marginalized and low-income communities.

Our first set of fund allocations squarely align with our economic and ecological impact goals:

  • Grameen America provides capital, training and support to aspiring women business owners from low-income and marginalized communities, to help create transformative economic opportunities.
  • We’ll also direct capital toward Greenbacker Capital Management, an investment firm that catalyzes growth in renewable energy technology and connects investors with innovations aimed at reversing the climate crisis.

“With Etsy’s generous support, Grameen America will equip more women business owners with affordable capital and financial resources so they can grow their businesses and thrive,” said Andrea Jung, President and CEO of Grameen America.

“Through this partnership and initial investment, we are thrilled for Etsy to join our efforts aimed at helping communities across the United States run on clean power,” said Charles Wheeler, President of Greenbacker Capital Management.

What’s good for people is good for business

We’ve learned from our previous work that when people have access to the resources they need to thrive, they are able to not only uplift themselves, but their families, the communities they live in and their local economies with them.

We look forward to seeing the Uplift Fund and Etsy’s Impact Investment Fund make a lasting, measurable impact on the lives of creative entrepreneurs, their communities, and beyond.