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JustFab, an online boutique that personalizes every user's shopping experience, has raised $76 million.
The LA-based startup is an Intelligent Beauty company and it has raised $139 million to date. Intelligent Beauty put the first $30 million into the company and Matrix Partners led a $33 million Series A. The new Series B round was led by Rho Ventures with participation from Matrix Partners, Technology Crossover Ventures and Intelligent Beauty.
JustFab is only two and a half years old, but co-CEO Adam Goldenberg tells us the company will generate about $100 million this year. He thinks JustFab can grow to $500 million in sales by 2013.
Goldenberg and his 300 employees want to build an H&M or Forever 21 type e-commerce brand. JustFab has more than 120 fashion consultants who create the personalized boutiques. Everything it sells is designed, manufactured, branded and sold by JustFab. Like Warby Parker, it's a vertically integrated business model. Since there's no designer or retailer in the equation, JustFab can afford to sell high-quality items at very low prices.
JustFab has 6 million users and Goldenberg says 500,000 new customers are joining every month. The users can either subscribe monthly for $39.95 or they can shop one item at a time. Subscribers can forgo a month of shopping so long as it gives JustFab enough notice. So whether they're shopping or skipping, users always have to visit JustFab at least once per month; JustFab never has to re-acquire its customers.
The company frequently gets compared to other LA startups, ShoeDazzle and Beachmint. But Goldenberg says there are some key differences. For starters, ShoeDazzle did away with its monthly subscription model a few months ago. Goldenberg says JustFab is also trying to build a complete fashion brand, not just a shoe brand (although it does ship millions of pairs of shoes per year). Unlike Beachmint, JustFab is one brand and one site; Beachmint is creating a network of fashion brands.
So what is Goldenberg going to do with the fresh $76 million? "This is a business that needs a lot of scale and infrastructure to be successful," he says. He plans to expand to different categories. Currently JustFab offers jewelry, denim, shoes and bags. In addition, JustFab will continue aggressively growing its customer base. It will also launch JustFab in the UK in September.
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Alyson is the Editor-in-Chief and CCO at Fortune. She was previously a co Editor-in-Chief overseeing Business Insider's tech and business coverage.She joined Business Insider in July 2008 as the company's sixth employee. She started as a sales planner before joining the editorial team in 2010, where she became a startup reporter and was first to cover some of today's largest tech companies, including Pinterest, Tinder, Instagram, Uber and Snap. Alyson rose to become a senior correspondent, then Executive Editor.She was appointed Editor-in-Chief of Business Insider in 2016, at which point she became the youngest and only woman to run a global business publication. Under her leadership, the business division has grown to hundreds of millions of monthly readers.Alyson was a host of Insider's conferences and launched a podcast, "Success! How I Did It," where she interviewed influencers ranging from Sheryl Sandberg to Steve Ballmer about their career paths (subscribe on iTunes here).She has appeared on ABC, Good Morning America, Al Jazeera, MSNBC, CNBC, CNN, and CBC, and she has interviewed media personalities such as Megyn Kelly, technology leaders like Fred Wilson, political leaders like John Brennan, and sports star LeBron James. She is a judge for the prestigious Gerald Loeb Awards in business journalism, and has been named one of Min's Rising Stars in Media, as well as Folio's 2017 Top Women in Media.She graduated from Syracuse University's Newhouse School of Public Communications, where she majored in psychology and advertising.You can read some of her investigative articles here:— Leaked videos reveal the true founding story of Snapchat— The founder who dumped Jared Kushner: Inside the phone call that left the White House star in a fit of rage— The downfall of billion-dollar startup, Fab— How a startup that raised the largest seed round in Silicon Valley history blew itself up before it even launched— The dark side of Facebook, where people lie, cheat, and make millions— A profile of Uber's controversial CEO, Travis Kalanick— The mystery of Jody Sherman, a founder who was driven to suicide and left behind a shocking business disasterDisclosure: Alyson owns bitcoin and Snap. She is also an investor in The Spun, a sports-media startup founded by her husband.
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