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

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.

 

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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.

 

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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.

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Here are the funding rounds...

 

And here are the buried investors...