Failure – Fab
- Current Company Value: Unknown
After seeing the success of eBay, many copycats came along while others joined a unique area of the e-commerce territory. Fab was expected to be the next big thing in this area after it started up in 2010. The company managed to raise a little over $300 million in venture capital and by March of 2015, Fab was valued at around $1 billion. They grew slowly but consistently. In June 2011 they managed to see 175,000 members but by December 2012 they had roughly 10 million members. In 2013, Fab was seeing at least six million unique visitors a month. How could they possibly fail at this rate?!?
While Fab had opened offices in various locations, they decided to eliminate 100 positions at their Berlin office in the summer of 2013. The company further laid off 101 more staff at their American office in October of that year. This reduced the company’s workforce by around 20% which did not make sense with their highest profit taking place. Yet they burned through over $200 million of their venture capital by this point. Usually, when Silicon Valley corporations, or any corporation, begins cutting staff (especially 20% of it), this is putting a giant “for sale” sign on the company door. In March 2015, Fab was sold to PCH International, and relaunched Fab as a new entity. However, if you check the Fab.com website, all that is present is a “Coming Soon” image… for now, 7 years.