Reinventing the Way People Shop for Their Homes
![A modern living room is pictured, painted entirely in an ivory shade. In the center there is a mid-century modern sofa in slate blue cloth upholstery and two decorative pillows. Three tables surround the sofa, one round iron side table to the left, one low wood and iron coffee table in the center and a wood and iron taller console table behind and to the right. Two pieces of wall art hang on the wall behind the sofa featuring round geometric shapes in neutral tones, with two black metal sconces on either side. To the right of the sofa is a a simple fireplace with only a round gold trimmed mirror hanging above.]()
Wayfair is a leading online retailer of home goods with operations in North America and Europe. Wayfair offers customers a differentiated shopping experience, with over 18 million items available for purchase, easy product discovery, and attractive prices.
We initiated conversations with Wayfair in 2009, and after a lengthy, active dialogue, in early 2011, we found ourselves on a short list of investors invited to formally engage given our Digital Commerce domain expertise and long history of working with founder-owned businesses. Impressed with Wayfair’s business model, financial profile, and strong management team, we became the largest investor in the company’s first outside capital raise.
Investment YearJune 2011 / April 2020
StatusIPO / Public Stock Sale
We initiated conversations with Wayfair in 2009, and after a lengthy, active dialogue, in early 2011, we found ourselves on a short list of investors invited to formally engage given our Digital Commerce domain expertise and long history of working with founder-owned businesses. Impressed with Wayfair’s business model, financial profile, and strong management team, we became the largest investor in the company’s first outside capital raise.
Co-Founder, Co-Chairman, & CEO, Wayfair
“
Their industry knowledge, capital markets expertise, and pragmatic advice through both ups and downs have made them a trusted advisor to our entire team. ”Niraj Shah
We leveraged our significant experience and portfolio breadth in online and offline commerce to provide counsel to Wayfair’s management as they grew from a $500 million company to revenue exceeding $5 billion. We were an active partner in helping the company access the capital markets, assisting management through its $367 million IPO in October 2014, as well as multiple subsequent convertible debt offerings.
We ultimately distributed our shares in 2017. Over the following three years, we stayed extremely close to the company, with Great Hill Managing Partner Michael Kumin remaining on the Board as Lead Independent Director. Fast forward to Spring 2020, when COVID upended the global economic system, creating panic and uncertainty. Beneath this backdrop, the Wayfair co-founders and Board considered an equity infusion to bullet-proof their balance sheet from the potential impact of the pandemic. Given Great Hill’s long history with the company and deep understanding of the business, we were able to move swiftly, helping lead a $535 million convertible debt investment into Wayfair in early April 2020. Since that investment, the company performed extremely well, with accelerating growth and profits. In January 2021, we distributed our shares in the company.
Fast Facts
- Sector Knowledge
- Experience with Founder-Owned Businesses
- Minority Investor
- Follow-On Investments
- IPO
Portfolio company executives were not compensated for the statements regarding their business relationship with Great Hill. Such executives do receive ordinary course compensation by portfolio companies which in some cases are controlled by Great Hill and in certain cases may also be invested in Great Hill Funds. There are certain conflicts of interest relating to such executives because they are employed by Great Hill portfolio companies and receive benefits in connection with such employment.
