MFG.com Receives $26 Million for Global Expansion10 Jan, 2008
Online manufacturing marketplace gets funds from Fidelity Ventures and Fidelity Asia Ventures.
MFG.com, a global online marketplace for the manufacturing community, has received $26 million in financing from Fidelity Ventures and Fidelity Asia Ventures. MFG.com reports that it will use the funds for continued global expansion, technology development, creating new online services, and acquisitions.
MFG.com also announced that Fidelity Ventures partner Larry Cheng has joined its board of directors. Cheng joins current board members Mitch Free, CEO and founder of MFG.com, and Steve Campbell, chief investment officer of Bezos Expeditions. In addition, Fidelity Asia Ventures managing partner Daniel Auerbach has joined as a board observer.
"The manufacturing industry is one of the world's largest vertical markets and represents a high potential market for a B-to-B marketplace because of its size, inherent globalization, and fragmentation," said Cheng. "MFG.com has demonstrated strong historical growth and built a world-class platform that we are confident positions them to further capitalize on the converging trends that are transforming the manufacturing industry: accelerated globalization and increased Internet utilization."
MFG.com reports that it facilitates billions of dollars in manufacturing transactions annually by connecting buyers and suppliers of manufactured products. With offices in North America, Europe, and Asia, MFG.com supports 10 languages and 12 currencies.
"Not only does MFG.com's proprietary, on-demand technology streamline the complex process of sourcing and selling manufacturing services, it also intelligently connects buyers and sellers from around the world while providing an unparalleled approach to intellectual property protection online," said Auerbach. "The success MFG.com has achieved in China just a year after establishing its office in Shanghai will help pave the way for future geographic expansion and overall business growth as the leading online manufacturing platform."
To date, MFG.com has registered more than 100,000 buyers and suppliers, all of whom have adopted the MFG.com platform as a preferred way of doing business.
"Our continued global growth was not dependent on raising additional capital, particularly given the profitability of our core business and the commitment of our existing investors, Bezos Expeditions and European Founders Fund," said Free. "However, we were particularly impressed with the strategic value that Fidelity Ventures' and Fidelity Asia Ventures' could offer based on their domain expertise and global reach, as evidenced by their successful investments in other online B-to-B marketplaces, including Alibaba.com. Their investment and involvement in MFG.com will further accelerate MFG.com along the path of becoming the dominant platform upon which the world's manufacturing community conducts business."