NEW YORK (Marketwatch) -- Manhattan Venture Partners on Friday said it values online marketplace Etsy at $689 million or more, after the company filed for an initial public offering earlier this week. The valuation is based on Etsy's $97.3 million in funding , which in the last round valued shares at $3.50 each. Still, they say the online marketplace faces risks as it develops its mobile app and as its sellers complain about changes to the platform. They also note that Etsy may have to restate earnings. In its filing, Etsy cautioned that was a possibility, because of how it accounts for certain unnamed expenses and "period-end accruals" which could mean past losses will widen. Etsy's has not yet made a profit, but the analysts said the company has a "good growth trajectory" and is "a compelling value proposition for buyers." In its filing, Etsy said it is seeking to raise up to $100 million. Etsy has not disclosed how many shares will be issued, but it has 221.1 million fully diluted shares outstanding.
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