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We just got off the phone with Fab cofounder Jason Goldberg. Fab raised $40 million at a $200 million valuation.The news is not surprising. When companies experience growth like Fab’s, investors start champing at the bit. Fab reached 1.2 million registered users just 6 months after launch.
Goldberg says 15 new investors wanted to invest in the $40 million round. He quickly narrowed it down to two, Andreessen Horowitz being one of them.
“We didn’t raise because we had to, we raised because we wanted to,” says Goldberg. “We figured we could raise now or raise again in three to six months. If we could do the round quickly before the holidays, we wanted to do that. It just closed today.”
He says Andreessen Horowitz moved fast and won them over in three ways.
“We wanted a lead investor who was committed to growth. Andreessen Horowitz is very active with entrepreneurs,” says Goldberg. “We also wanted an investor who is active in the space.” Andreessen Horowitz certainly is; it just led design site Pinterest’s $27 million round last month.
Lastly, Goldberg says he wanted Jeff Jordan. Jordan just joined Fab’s board and Goldberg says he is thrilled to be working with him.