Tencent invested in the online design-centric store Fab.com because it is an startup with a promising future and the two firms can launch in-depth cooperation to create synergistic effect after Fab enters Chinese market, said Peng Zhijian, Tencent’s vice president for investment and acquisition, at 2013 Paidai Annual Conference (report in Chinese).
As a former gay social networking website, Fab.com has transformed into a design retailor two years ago, mainly engaged in the sales of furniture, jewelries and pet products, etc. It now has 12 million registered users, according to the report.
Fab founder and CEO Jason Goldberg is an experienced entrepreneur and all the projects he ever participated in are quite successful, signaling that he has excellent sense and executive powers, Peng said. Furthermore, Fab has connected the demands of designers and customers. Peng predicted that the valuation of Fab would reach tens of billion dollars in the future.
He added that Tencent not only pursuit the complementary of business in selecting investment targets, but also weighs innovations and value of the startups.
Fab.com announced $150 million yuan of Series D financing this June at a valuation of more than $1 billion. Tencent is among the investors, but the amount remains unclear.