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Fab’s Jason Goldberg weighs in on what he knows best: Fundraising
“Raising Money. One of the few things I’m certainly good at.”

Fab was, in the words of Michael Carney, “among the biggest whiffs we’ve ever seen in the private markets.” Jason Goldberg and Bradford Shellhammer’s ecommerce startup went from a billion dollar valuation to a proposed sale valuing its remaining parts at just $15 million.

But despite whatever operational failings may have led to Fab’s demise, one thing Goldberg never had trouble with is raising money — Fab had raised over $300 million over its lifespan. And so in today’s climate where, as Josh Kopelman [Disclosure: Pando investor] recently wrote, it’s harder than ever for the army of seed companies to raise Series A rounds, there’s a lot entrepreneurs can learn from Goldberg’s experience.
Fab.com  Jason_Goldberg  PandoDaily  StartUp_Information  Venture_Capital 
march 2015 by GameGamer43
Fab cofounder Jason Goldberg has a long track record of running startups into the ground. Earlier in his career, he founded a search engine called Jobster--and managed to vaporize $48 million in funding before the company was sold for parts. "I was this poster child in Seattle of this guy who had burned through VC money, like a pariah," Goldberg told Fast Company in 2013. But Silicon Valley investors, who tend to view startup "failure" as a virtue, ignored the red flags--and Goldberg managed to talk investors into throwing a whopping $325 million at Fab.
Fab.com  Jason_Goldberg  Venture_Capital  Business  StartUp_Information  FastCompany 
march 2015 by GameGamer43
Fab Was Burning Through $14M/Month Before Its Layoffs And Pivot | TechCrunch
[operational cost low in Berlin. 'running out of cash before traction and revenue starts to climb'] “We have years and years of cash left,” Goldberg notes. It seems that even if there may be new kinds of overhead with the design, building, selling and distributing of furniture, it’s nothing compared to the burn of a startup with hundreds of employees and the challenges of grappling with inventory from dozens and dozens of suppliers. Real estate is one part of that cost base: in New York, Fab paid $250,000 per month for two floors of office space. In Berlin, the company spends $125,000 per year on rent. [min11 ... a choice you have to make about your business; scale with low margin ie Amazon, Zalando&co *commodity business. or the reverse. tight curated sought out offering with high margins with a shelf life of very few months *ie seasonal high end fashion, designer items of any kind, hand manufactured stuff] & techcrunch.com/2014/10/20/justin-kan-disrupt/ & youtu.be/CyIMNDCyuBM
Fab.com  Hem  Jason  Goldberg  Berlin  Start-Up  Scene  New  York  Start-Up  Scene  Silicon  Valley  burn  rate  runway  Lean  Start-Up  commodity  business  commoditization  Zalando  margin  Europe  Start-Up  Scene 
october 2014 by asterisk2a
Drowning in venture capital, mobile startups are waging unsustainable price wars | PandoDaily
upside of this up-cycle/up-business cycle? everyone with a little bit of chops and a MVP with little bit of traction can get capital. Downside? Everyone spends their capital. Would never happen in a down cycle. Down cycles are great, you've got more time to build a great team, product and brand. .... "[L]ook at ecommerce 2.0 companies like Fab and EcoMom who blew millions in capital acquiring customers at unsustainable rates, hoping for some magic lifetime customer value to justify the spending. (It didn’t.) “There’s a tension between growing fast enough and having a disastrous bottom line,” Jeff Clavier, Founder of SoftTech VC, says. Clavier was an early investor in Fab, among others playing this game. “If you don’t have growth you’re stuck, but if you have growth with economics not viable in the long term, [you’re making] a real bet that you’ll be funded nevertheless.” [...] companies aren’t developing a sustainable business model. [Freemium works better with Software Product.]
Start-Up  lesson  Start-Up  advice  Lean  Start-Up  VC  Venture  Capital  hunt  for  yield  growth  round  Uber  Lyft  Fab.com  sustainable  sustainability  customer  acquisition  customer  retention  2014  asset  bubble  bubble  Silicon  Valley  Palo  Alto  San  Francisco  business  model  business  plan  user  experience  user  expectations  Amazon  Zappos  free  freemium  SAAS  on-demand  mobile  services  Industry  mobile  first  Uber  for  X  Groupon  Berlin  Start-Up  Scene  Europe  Start-Up  Scene  London  Start-Up  Scene  me  too  price  war  commoditization  commodity  business  differentiation  differentiate  brand  brands  branding  indefensible  values  defensible  values  business  management  management  economics  frictionless  friction  rackspace  training  your  customer  growth  crutch  growth  hacker  traction  Value  Proposition  long-term  thinking  long-term  view 
july 2014 by asterisk2a
Twitter / betashop: 1/ Say hello to Hem ...
@Fab announces @tweetsfromhem (hem.com) for customizable home furnishings; the new furniture site will be a spin-off from Fab; will launch in 30 countries in Sept; 'Hem is a full-stack design company: everything from design to product development to manufacturing to technology & logistics.. factory-direct, easy-assembly, speedy delivery, & mass customization,' Goldberg says [...] Someone said "If you didn't fail, you didn't try hard enough." Goldberg uses what had traction & what was loved by users of Fab, tries to build something new with the remaining capital, without the baggage of Fab.com. Interesting. #customisation #individualisation #appeal-of-luxury #hint-of-luxury #status-symbol #niche
Fab.com  Start-Up  advice  Start-Up  lesson 
july 2014 by asterisk2a

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