PCH International in Talks to Buy Fab for $15M
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PCH International in Talks to Buy Fab for $15M
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Re: PCH International in Talks to Buy Fab for $15M
#2oww.. the half-stock/half-cash is the insult to injury.
nastygal, modcloth (well funded ecommerce) also having tough time.
good reminder that 1) ecommerce is hard and 2) vanity metrics on ecommerce is an order magnitude larger than most many entrepreneurs think:
"$10 million in goods sold this year" --> not at scale
"$1.5 million sold a day" --> still not at scale!
Re: PCH International in Talks to Buy Fab for $15M
#3Fab Inc is selling off what remains of the Fab brand & website(s). This should not be a surprise to anyone given they pivoted to Hem in Sept:
Re: PCH International in Talks to Buy Fab for $15M
#4I'm always curious what goes into a decision to sell at all in a situation like this.
$336 million raised, sold for $15 million
Is there actually a good reason to bother to do that?
Whatever the case, this is one that'll be referred to with the market bubble of 2012-2014 (along with perhaps Twitter's former $48 billion market cap, Zynga's $15b valuation, the insanity that surrounded Groupon and its $20b valuation, and so on).
Re: PCH International in Talks to Buy Fab for $15M
#5I'm always curious what goes into a decision to sell at all in a situation like this. $336 million raised, sold for $15 million Is there actually a good reason to bother to do that? Whatever the case, this is one that'll be referred to with the market bubble of 2012-2014 (along with perhaps Twitter's former $48 billion market cap, Zynga's $15b valuation, the insanity that surrounded Groupon and its $20b valuation, an…
I would speculate that it's to at least salvage something. I read that their recent burn rate was as high as $14m / month and of course they are in no position to raise a further round.
Re: PCH International in Talks to Buy Fab for $15M
#6I'm always curious what goes into a decision to sell at all in a situation like this. $336 million raised, sold for $15 million Is there actually a good reason to bother to do that? Whatever the case, this is one that'll be referred to with the market bubble of 2012-2014 (along with perhaps Twitter's former $48 billion market cap, Zynga's $15b valuation, the insanity that surrounded Groupon and its $20b valuation, an…
No idea about this specific case, but the assumption of liabilities may or may not be involved. There are also some ethical considerations about keeping jobs in a going concern (however minimal), and some PR considerations about liquidation, etc. It wouldn't be out of order for a company with $300MM in funraising to have $15mm in misc. liabilities.
Re: PCH International in Talks to Buy Fab for $15M
#7oww.. the half-stock/half-cash is the insult to injury. nastygal, modcloth (well funded ecommerce) also having tough time. good reminder that 1) ecommerce is hard and 2) vanity metrics on ecommerce is an order magnitude larger than most many entrepreneurs think: "$10 million in goods sold this year" --> not at scale "$1.5 million sold a day" --> still not at scale!
CEO “It’s not that hard to build a $100 million revenue e-commerce business, but how do you scale ... "
er, yep that's not good.
Re: PCH International in Talks to Buy Fab for $15M
#8At first I was confused on who these guys were.
http://techcrunch.com/2013/07/29/just-fab-sues-fab-over-trad...
Two founders with the same last name
found companies with the same corporate name.
Not to be confused with "JustFab"[1]
_____________________________________________
[1] Why can a scam company raise $40 Million Series C + $76 Million Series B?
"https://news.ycombinator.com/item?id=6455391"
http://www.matrixpartners.com/entrepreneur-stories/adam_gold...
(Obligatory reply from VC is below)
https://news.ycombinator.com/item?id=6455575
Turns out they are litigating the names
Re: PCH International in Talks to Buy Fab for $15M
#9I always really enjoyed the products Fab procured, but most of it was way outside my price range, and now they have pivoted to hem, where they sell this table (http://hem.com/en-gb/product/bento-dinner-table-long-10022) for ~1200$ USD
Re: PCH International in Talks to Buy Fab for $15M
#10A bit bittersweet for me. I had a failed startup a year ago where we were trying to connect consumers with local woodworkers and metalworkers. At the time, we attributed our lack of success to Fab and their ability to convince consumers to focus on discounts. We had a ton of other reasons for failing but ecommerce, especially for higher ticket items is extremely difficult and definitely sucks that they didn't make it work. On an abstract level I feel validated that their model didn't succeed but I also sympathize with the founders and the rest of the team. Hopefully they learned a ton and land on their feet.