Founded in 2010, JustFab, now known as TechStyle, is an online fashion retailer that carries a wide selection of handbags, jewelry, shoes, and denim. It can provide a more personalized shopping experience based on its members’ preferences.
Adam Goldenberg is the co-CEO of JustFab and, through his hard work, the company climbed the ranks and earned the right to be called a “unicorn”. What is a unicorn? In this sense of the word, unicorn refers to a company that have a valuation of over $1 billion.
Adam Goldenberg sat down with Bambi Francisco, the founder and CEO of Vator, at Vator’s annual Splash Oakland event to talk about his company. When asked about the company’s unicorn status, Adam Goldenberg spoke about how they never thought of themselves as a unicorn, but a lot of employees have spent a lot of time working very hard. So it’s nice to have the external validation. They’re building a big company, but it doesn’t really change the way they operate day-to-day.
As the years go on, unicorn companies are becoming more and more common. In 2014, 38 companies gained unicorn status on rgtadvisors.com. In the previous three years, only 22 companies gained that status.
Francisco then asked if Adam Goldenberg thought the valuations were getting out of hand. He said that you could probably invest in those companies and get decent returns.
So who are the “big dinosaurs” in JustFab’s industry? There are multiple retailers that are similar to JustFab such as Forever21, Abercrombie, and The Gap for example. Americans spend about $360 billion a year on apparel and accessories. $50 billion of that happens online at http://www.techstyle.com/techstyle-ceo-adam-goldenberg-talking-name-change-on-cnbc/. 10 years ago, that number was next to nothing, and a few years later it was $20 billion. The accessories and apparel industry isn’t growing in the US, but where the money is spent is changing rapidly.
Adam Goldenberg believes that at least half of all shopping will be done online within the next 10 years and he hopes to be making a decent chunk of that.