It was informally announced this morning that Cafepress purchased Imagekind.com for an estimated $15-$20 million. Imagekind is a marketplace of member created art that is printed on demand. The model is similar to Cafepress where the artists set their own price markup but it is focused specifically on prints. Prices of the artwork range from $5 to $500.
Imagekind was founded in 2006 with $300K used to purchase printing equipment, hire staff and web site development. In February 2007 Imagekind raised an additional $2.6 million in funding and was valued at around $7 million. Imagekind had turned down offers in the past to be purchased by Amazon.com. It is likely that both Art.com and Zazzle.com were also involved in recent negotiations to purchase the growing print on demand company. Imagekind has grown quickly to over 750,000 art images for sale by over 50,000 artists worldwide.