Design startup Fab just raised $150 million in part one of its Series D round at a pre-money valuation of $1 billion.
Fab CEO Jason Goldberg expects to complete the round within the next months.
Investors in Fab’s latest round include Chinese Internet giant Tencent, Japanese conglomerate Itochu, Andreessen Horowitz, and Atomico.
Bringing Tencent on board a strategic investor will help Fab bring its products to the Chinese market, Goldberg wrote in a blog post announcing the round.
Fab has aggressively been going after the international market. As part of its pivot in April, Fab launched in France in order to reach 99% of the European Union. It also launched its first-ever retail store, located in Hamburg, Germany.
Fab has raised $310 million since its inception. That’s $89 million more than the $221 million Gilt Groupe,* one of the largest private companies in the e-commerce sector, has raised. Given that this is just part one of its D round, that number will only grow.
Other industry insiders worry that the company is expanding too quickly, could have weak margins, and might be burning through cash too quickly.
But Goldberg has a response for the sceptics.
“Fab is focused on the long term,” Goldberg writes. “We are focused on creating “Wow!” shopping experiences that will result in customers making 20+ purchases from Fab within a couple of years. We are focused on being the global brand that represents emotional commerce for decades to come.”
In short, it’s all about creating a global company. To put it in perspective, Goldberg notes how Amazon has raised $5.3 billion in equity and debt since 1997.
“Building a large e-commerce business is capital intensive, but there are several winner-take-all opportunities and Fab hopes to capitalise on at least one of those in the global market for emotional products,” Goldberg writes.
Disclosure: Gilt Groupe’s co-founder, Kevin Ryan, is Business Insider’s co-founder and Chairman.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
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