>Lack of scalability was Etsy’s unique value proposition and competitive advantage.
In the same way that many small-scale sites/stores that curate contents can be said to have unique value proposition and competitive advantage. That's not a knock on them by the way. Many are good at what they do and add value. Not everything needs to be Internet-scale but you sort of have to be one or the other.
If you IPO, you have no choice but to achieve and increase Internet scale. Your share price will suffer if you don't because when you IPO, your investors matter more than your other stakeholders. If you don't want to be a slave to an insatiable hunger for growth by investors, don't IPO. For that matter, don't get investors who expect an exit either. Yeah, you miss out on the big get rich exit, but at least you get to stay true to your original values. Be content to stay a larger than usual lifestyle business. Can't have your cake and eat it too.
In the same way that many small-scale sites/stores that curate contents can be said to have unique value proposition and competitive advantage. That's not a knock on them by the way. Many are good at what they do and add value. Not everything needs to be Internet-scale but you sort of have to be one or the other.