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Summary:

The New York startup scene keeps booming and the latest boost is coming from social commerce company, The Fancy, that is said to have raised $53 million in new funds and is valued at a whopping $600 million.

The Fancy Twitter Facebook Google login page

The interest in social commerce seems to keep increasing by the day. We all know America’s newest addiction Pinterest is being valued at close to $2 billion and has raised hundreds of millions of dollars. And now the word is that New York-based The Fancy is worth over $600 million. According to Bloomberg, The Fancy raised $53 million from American Express, actor Will Smith and others.

The Fancy makes play to be the Amazon of social commerce thumbnail

Joe Einhorn, founder, The Fancy

The report said that the company has sales of $3 million a month and is being valued at around $600 million according to their sources. The company had previously snagged a total of $60 million in multiple rounds of funding and counts Twitter & Square co-founder Jack Dorsey among its investors.

Not bad for the company started life as Thing Daemon (a somewhat esoteric company that struggled to find initial traction till it turned itself into The Fancy.) This new cash infusion is going to help the company find ways to stay ahead of its rivals such as Pinterest and Wanelo, the later being an upstart that is gaining momentum.

This pinterest-ization of the web is leading to a new behavior that will influence how people will buy things. Wanelo CEO Deena Varshavskaya at a conference put it well when she said that we are about to see a shift in power when it comes to commerce. Today, we have brands telling us what to buy, and in the future, thanks to information gleaned through peer-networks such as Pinterest, Wanelo and The Fancy, we are going to make buying decisions based on relevancy.

P.S.: Here is our early take on the Fancy. Social Commerce is very near and dear to our hearts, mostly because we believe in the new kinds of discovery behaviors that are taking root, something we have and will continue to discuss at our RoadMap conference in November 2013.

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  1. Is that the best picture available of Joe Einhorn? That one makes him look like an extra on Breaking Bad.

    1. Conversely, Is that the best possible anonymous comment handle you could come up? ;-)

  2. makeupguru4uwp Monday, July 8, 2013

    Who decided that The Fancy was a “Pinterest Rival”? The Fancy is nothing like Pinterest. Pretty sure they just had to name drop “Will Smith” & “Pinterest” to generate hits for this article & call attention to their little-known site. The Fancy does have some cool products on it, but their format is really boring & most of the products cost a fortune.

    1. Looks like the Sharper Image, 21st century style.

  3. “Today, we have brands telling us what to buy, and in the future, thanks to information gleaned through peer-networks such as Pinterest, Wanelo and The Fancy, we are going to make buying decisions based on relevancy”

    1. Part of my comment was cut-off for some reason.

      I meant to add that I’m not 100% sure what this sentence is supposed to mean because “making buying decisions based on relevancy” sounds like meaningless consultant-speak BS. That said, is the claim supposed to be that brands won’t be relevant in purchasing decisions and won’t shape brand image through advertising directed at consumers – “telling [consumers] what to buy? If so, that’s a foolish and almost unbelievably stupid statement.

  4. mwana biashara Friday, July 19, 2013

    I very much agree with realist50, I think brands will always sell better, but who knows, maybe the likes of Pinterest and the Fancy will be brand names in the near futue

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