When Fab.com originally started, it was a social network for the LGBT community. Now the website is a flash sale website with 72-hour deals. The company has just raised $40 million in funding from Andreessen Horowitz and is now valued at over $200 million. It was only about 6 months ago since Fab.com switched from being a gay social network.
This past July, Fab.com raised funds that gave them a valuation of around $25 million. Fab.com processed about 100,000 orders in November alone, which was double the month before. Now Fab.com is averaging about $1.4 million sales per week. Fab.com currently has 1.2 million registered users. The company is expected to hit 4 million members by next year.
First Round Capital, Menlo Ventures, Baroda Venures, SoftTech VC, and Ashton Kutcher were investors in Fab.com’s series A and is believed to be participating in this round as well. Fab.com plans on using this round of funding for making investments in their distribution and customer service capabilities. Fab.com currently employs about 120 people. Fab.com CEO and co-founder Jason Goldberg previously founded website Jobster Inc. The company runs about 14 sales per day which lasts about 72 hours.