Aug. 29 (Bloomberg) -- JustFab Inc., an e-commerce startup with brands including ShoeDazzle and FabKids, has become the latest company to be valued at more than $1 billion.
The Manhattan Beach, California-based company has raised $85 million led by Passport Special Opportunity Fund, with participation from existing investors such as Matrix Partners and Shining Capital, JustFab co-founder Adam Goldenberg said in an interview yesterday. The financing pegs the company’s value at just north of $1 billion, said people with direct knowledge of the matter, who asked not to be identified because the number is private.
The financing continues a trend of technology startups raising money at more than $1 billion valuations this year. Lookout Inc., a maker of smartphone security software, earlier this month snagged a $1 billion-plus valuation. Last month, mobile games maker Kabam Inc. also was valued at more than $1 billion in a funding round. According to researcher CB Insights, 14 U.S. technology companies entered the $1 billion valuation club in the first half of the year, more than double the number of startups that did so in all of 2013.
Other companies are raising money at even higher valuations. Mobile-payments company Square Inc. is in talks for funding at a $6 billion valuation, a person with knowledge of the matter said this week. Snapchat Inc., which makes a mobile application for disappearing photos, is also holding a funding round at a $10 billion valuation, a person familiar with the matter has said.
JustFab, which was founded in 2010, has raised a total of $250 million, Goldenberg said. The company will use the new money to strengthen its balance sheet and finance the recent international expansion of its sport line, Fabletics, which just opened in Germany and the U.K., he said.
Technology blog PandoDaily earlier reported the JustFab fundraising.
(An earlier version of the story corrected the spelling of Adam Goldenberg’s first name.)
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