Not So "Fab": From $1 Billion Valuation To $15 Million In A Year

Tyler Durden's picture

As we warned earlier, it appears the tech-startup bubble is bursting - very quietly behind the scenes. Today we get another confirmation that this dot-com 2.0 explosion of speculative surreality has peaked. Once Silicon Valley darling, Fab - started out as a dating site for the gay community and then relaunched as a flash sale site for home decor - raised $150 million just over a year ago (at a $1 billion valuation), but as TechCrunch reports today, multiple sources have confirmed that Fab is in talks to sell to PCH International for $15 million in a half cash and half stock deal. Pets.com?

 

 

June 2013...

 

And today...

As TechCrunch reports,

Multiple sources have confirmed that Fab is in talks to sell to PCH International for $15 million in a half cash and half stock deal.

 

...

 

Fab was once a Silicon Valley darling. The likely purchase price is a paltry one, compared to the $150 million it raised (at a $1 billion valuation) just over a year ago. Goldberg admitted the company was burning through $14 million a month before a massive round of layoffs in June.

 

...

 

Fab has seen some drastic changes in its 3 years of operation. It started out as a dating site for the gay community and then relaunched as a flash sale site for home decor. Fab announced just six months after the pivot that it had grown its membership to 2 million, with sales averaging $1.5 million a week.

 

A source close to the company tells us no one really works at Fab anymore. Although one could argue that technically most of what Fab was has been rolled into Goldberg’s new venture. He’s now shifted all focus to Hem and has moved to Berlin to manage everything there. Goldberg maintains his CEO title in both Fab and Hem at this time.

*  *  *

Here are the funding rounds...

 

And here are the buried investors...

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Id fight Gandhi's picture

It's a homosexual dating site that turned into a furniture business. Do I have that right?

exi1ed0ne's picture

Yeah, I thought Ikea already was the market leader in that space.

walküre's picture

The funds who bought this POS only lost their client's money. Some of these fund managers are not discerning and will buy anything as long as they're incentified well enough to sell it to the investors. In other words, a good fund manager will pitch anything to the boards and the investors for the right price.

Not sure how "fab" pulled this off but they clearly had a lot of fund managers by the balls, maybe literally. Yuck.

AlaricBalth's picture

I see many dupes from that list of VC's.

Agent P's picture

Didn't JCP try the same thing only in reverse order? 

Make_Mine_A_Double's picture

Just the name FAB is worth a billion dollars.

(Said with Daffy Duck lisp)

pods's picture

Not just furniture, FABulous furniture.  Think IKEA that makes "it" move.

pods

Pure Evil's picture

I'm getting a flaming woody just thinking about it.

oklaboy's picture

so instead of a " pump and dump" it's a "pump, pump, pump"

DollarMenu's picture

And, the CEO has left the country...

Divided States of America's picture

Dual citizenship comes in so handy for most criminals.

Agent P's picture

 It started out as a dating site for the gay community and then relaunched as a flash sale site for home decor.

Gay dating AND home decor?  Somebody pinch me! 

MrSteve's picture

Yoda says " They wood, have."

Tim Knight from Slope of Hope's picture

(??) It would be, "Wood, they have." C'mon. Get it right.

Pure Evil's picture

I'm sportin' wood here, and its on sale!

MrSteve's picture

Corrected, I am....

       ... Thanx, got the syntax right now

ebworthen's picture

Tech bubble 2.0 for the Millenials, who were watching "Dora the Explorer" and "Malcolm in the Middle" while Mom and Dad sunk their college fund into Pets.com and WorldCom stock.  Pinch me too, because here it comes again.

Let the good times roll (while they last):  http://www.youtube.com/watch?v=7BDBzgHXf64

Buster Cherry's picture

queer eye for the straight guy...

Ancona's picture

You just can't make this shit up. A billion dollars? I am in the wrong fucking business man.

aVileRat's picture

Its cool, you are near a toptick when you start having those thoughts.

 

Jonathan Equine Phallus's picture
Jonathan Equine Phallus (not verified) Nov 21, 2014 4:31 PM

Snapchat!!

Four chan's picture

never heard of ya, heres 20 bucks go clean yourself up. 

Seasmoke's picture

Careful looking underneath those cushions !!!

tommylicious's picture

does this have anything to do with that Fabreez guy from Goldman?

pods's picture

Oh no, what are they using inside that sock puppet mascot?

pods

Seasmoke's picture

Just went to Fab. First time ever. Unreal that some idiots are going to still pay $15 million !!

NotApplicable's picture

Well, if people are stupid enough to pay those kind of "sale" prices...

SeattleBruce's picture

Your visit just helped their 'unique vistors/click' stats...now they're "worth" $15,000,010!  Perhaps they should also sell fudge packs?

buzzsaw99's picture

See the little faggot with the earring and the makeup

Yeah buddy that's his own hair

That little faggot got his own jet airplane

That little faggot he's a millionaire...

[/money for nothing]

Agent P's picture

Running faggot, running free.

See the faggot, he fed a puppy.

Running faggot, running free....

[/Kids in the Hall]

http://www.youtube.com/watch?v=b-TtfMLGnok


pragmatic hobo's picture

gay dating web-site? ... sounds like a perfect acquisition target for AAPL ...

Vampyroteuthis infernalis's picture

Cook has trouble dating in San Fran area? No!

Seize Mars's picture

Goldberg got his financing because of his club membership, not because the business model was real.

disabledvet's picture

Now flee to Germany!

I am a Jelly Donut!

Bangalore Equity Trader's picture

Listen Zero's.

It was a sound idea. The ultimate membership bait-and-switch.

But the bait and switch was pulled on the investors, Goldberg Style.

Kilgore Trout's picture

If you're as old as I am, you may be singing a jingle about "Lemon Freshened Borax" by now.

astoriajoe's picture

75% off on beard warmers too!

InflammatoryResponse's picture

don't be silly, that's on the HETERO dating site.

 

anachronism's picture

The more open homosexuality becomes "normal" and "mainstream", the less cache and allure such venues will have for  their "target" audience.

WillyGroper's picture

Gotta female friend that thinks Cook's coming out was great. Reasoning: if it saves one kid from suicide.

So I get the email of a steroided up shemale who's tittypecs could give you a concussion & at the end of it said, I gave her your number. 

I just don't get people anymore. Apparently it was not amusing.

anachronism's picture

The more open homosexuality becomes "normal" and "mainstream", the less cache and allure such venues will have for  their "target" audience.

BiteMeBO's picture

My business is marketing product to ecommerce sites - primarily flash sale sites like Fab.  Yes, shit we don't need.  I'm not defending the industry but this is old news.  Fab died a year ago.  All of these entities (Groupon, One Kings Lane, Living Social, etc.) are very new businesses all <10 yrs. old.  Overall, they are all very popular and generate incredible sales considering they didn't exist a few years ago.  That said, they are not yet making $$ and still trying to figure out the optimum model during rapid sales growth.  There will be failures and consolidation while the industry attempts to find its footing and potential profitability.  Some will survive and others will die.  Kind of like Ferguson.

Just my two cents from someone in the industry.   

SeattleBruce's picture

"while the industry attempts to find its footing"

What industry?