What is Fab? Fab Review

1. Introduction

Fab successfully transformed and received $47 million in investment in just 6 months. Currently, the website has more than 5 million members, more than 5,000 designers, and sells an average of 3.4 products per minute. Its creative products cover more than 20 countries.

44% of the members are between 25 and 34 years old, 35% of the website's visits come from mobile devices, and 50% of users are attracted through sharing on social networks.

2. Creation

Fab was co-founded by Jason Goldberg and Bradford Shellhammer, and now the team consists of more than 400 design enthusiasts from many countries around the world. This round of financing will help Fab continue to improve user experience, speed up delivery, and increase the output of creative products. At the same time, Goldberg said that they will continue to expand globally, and it is expected that by 2014, 50% of the company's purchases will come from overseas.

3. Financing

According to multiple people familiar with the matter, the US flash sale website Fab is in the late stages of negotiations with venture capital firms on financing matters. The company plans to raise $250 million to $300 million, and its valuation in this round of financing will reach $1 billion.

Fab did not disclose the names of the venture capital firms that participated in this round of financing, but people familiar with the matter said that existing investor Atomico is leading this round of financing, which is expected to be completed in mid-June. Atomico spokesperson did not comment on this report. Fab has grown rapidly in recent years, but has not yet achieved profitability. If the news is true, the billion-dollar startup club will soon welcome a new member.

IV. Transfer

In March 2015, Fab was acquired by PCH. Fab's current 35 employees will join PCH, but Fab's CEO Jason Goldberg will not join PCH. Both parties refused to disclose the acquisition price. However, based on PCH's latest round of financing, it is speculated that it should be $7 million in cash plus $8 million in shares.

Not all of Fab's assets were sold this time. The home furnishing e-commerce brand Hem has been transferred out of Fab, taking away a large amount of funds and resources. The founder Jason also wants to open up new product directions through such a new online furniture brand. After the acquisition is completed, he will also go to Hem.