Fab.com has been on my mind the last few weeks as I wanted to have an indepth look at the company after I wrote about the refocus in May 2013. I don’t know whether I got bitten by all the hype but the fab.com story is beginning to feel like never ending story. At the momment the fab’s story goes like this:

Raise funding – Unveil a new feature – do Press ->  lay-off staff  – do press on the future of the company and then restart the process.


Fab.com is a business that started as a gay social network. Went nowhere and then pivoted to a flash sales business. Many iterations later and $300 plus million raised fab.com is now in a critical phase of its lifecycle. Why? The fact that they have raised hundreds of millions of dollars from investors (like Andreessen Horowitz) and for all intensive purposes have not a lot to show for it. Thus it will make raising money in future more difficult. What happened to all the raised money?


Fab.com has been in my own opinion way too aggressive regarding acquisitions. They have acquired competitors in Europe over concerns that a investment accelerator called Rocket Internet may hinder their growth in Europe.  The businesses they acquired:

January 2012 – FashionStake (US)
February 2012 – Casacanda (Germany)
June 2012 – Llustre (UK)
November 2012 – True Sparrow (India)
May 2013 – MassivKonzept  (Germany)

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