Fab will sell for 15 million dollars

It is hard to link these tags with the scenery of the flash-purchase site fab by quickly flashing red and valuing 1 billion of dollars to be sold, but that is the fact that last June, when Tencent and Andreessen Horowitz invested at $1 billion trillion, after just over a year, Fab is planning to sell to PCH Analysys Company for 15 million dollars. Of those 7 million dollars used in cash, the remaining use of PCH shares, the current stock valuation of 8 million U.S. dollars.

The 8 million-dollar valuation was based on the last round of financing that PCH completed a few years ago. According to Fab, PCH after years of development, the stock price earlier than this money, so the total value of the PCH to Fab opened between 25 million to 50 million dollars. Of course they can do so, but the stock price can rise and fall, the company will sell more than the "fancies" of the real son really does not mean much.

According to the terms, PCH will have fab brand name, website, and Fab to optimize the site experience of the patented technology, as well as manufacturing technology platform. PCH will also take over the FAB customer list, inventory and Fab 30 employees.

Looking at the development of FAB, an important node in April 2013, Fab announced a strategic transformation, from the flash site to more traditional design-featured retailers, and after a lot of layoffs. In this case, Fab gave the reason for the company's business from the Flash to the traditional mode of electricity, many employees are no longer suitable for the company's development requirements, the new model is no longer highly dependent on manpower to select goods.

This fall, fab CEO Jason Goldberg The reason for the transition in an interview: Fab to keep running requires 30 million dollars, but only in the market to raise 15 million dollars. June 2011, fab on-line Flash purchase business, focusing on home creative products. But in a very short period of time Fab will expand the product category to men's, women's, children's wear, home textiles, pet goods, all inclusive. The rapid expansion of the business resulted in Fab losing its original features and gradually losing its appeal to consumers. At the same time, fab in the rapid expansion of the category and lost control of the cost, 2012 Fab achieved sales revenue of 115 million U.S. dollars, but the marketing cost is as high as 40 million U.S. dollars, accounting for about 34.78% of sales revenue. For a variety of reasons, Fab is targeting the business model of the flash-purchase, hastily making the transition decision, and failed to withstand the pain of the transition, not to face the situation of forced sale today.

However, the sale of all not fab assets, home electrical goods brand Hem has been transferred from the Fab, founder Jason also want to through such a brand new network furniture brands to open up the direction of the product, he still has the opportunity for himself, investors and the board to recover a innings. Hem has tens of millions of dollars that investors had invested in Fab before, and 150 employees were available.

Hem's concept is very simple, is to allow users to participate in household items personalized manufacturing--hem will be in the book to provide users with online personalized design tools, so that users participate in the process of manufacturing design, Users can assemble the product without any tools when they receive it (people who are interested can view the effect directly to their home page). In price, they filter the middleman directly with the top European factories to establish cooperation, so can be at the right price to sell high-quality products to consumers.

Fab burns money like burning at its peak, hem at least at this point. If Goldberg can pick up the designer's soul on the hem, focus on design, and always focus on the rate at which operating costs account for revenue, Goldberg may also be able to bring his hem team back to the U.S. market. Of course, if Goldberg this time the pressure conversion strategy, the result will have to say another.