Fab.com launched in June 2011 as a flash-sale site for design-oriented products. The growth was staggering: 1 million members in 5 months, $100M revenue in the first full year. By 2012, Fab was valued at $1 billion and had raised $336M from Andreessen Horowitz, Tencent, and others.
Company Data
- Founded: 2011 — Jason Goldberg, Bradford Shellhammer
- Total Funding: $336 million
- Monthly Burn at Peak: ~$14 million
- Sold For: $15 million (2015)
Growth was breathtaking—and that was the problem. Fab spent heavily on customer acquisition, launched in 26 countries simultaneously, and burned $14M/month. The flash-sale model didn't fit home goods. Multiple frantic pivots confused customers. By 2015, the company sold for $15 million—less than 5% of capital raised.
Key Lesson
Revenue growth without healthy unit economics is just expensive noise. Measure CAC against LTV from day one.