10 January 2008 | Paul Snell
Two venture capital firms are to invest $26 million (£13.3 million) in the US-based online manufacturing supplier search function MFG.com.
Fidelity Ventures and Fidelity Asian Ventures will make the investment to develop the firm's technology, expand its global presence and help with any potential acquisitions.
MFG.com is an online marketplace that allows buyers to source engineering and manufacturing suppliers. The firm was founded in 2000 and claims to be the largest worldwide online marketplace for the manufacturing sector, with more than 100,000 buyers and suppliers registered to the site.
Mitch Free, CEO of MFG.com, said in a statement: "We were 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 B2B marketplaces including alibaba.com."
Chinese marketplace alibaba.com recently raised more than £800 million when it went public at the end of 2007 (Web news, 7 November 2007).