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Spectatular failure from red-hot startup Fab that raised $330 million and then went bust

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I read / skim roughly 10 startup related articles going back 2+ years now. After a while things do get repetitive however today I came across a article about Fab which I found particularly interesting for 3 reasons.

1 – The dollar figures involved in investments received, sales generated, units shipped and acquisitions made is quite astounding especially considering the short time frame.

2 – Incredibly few companies reach product market fit. “Fab had product market fit, but Fab didn’t understand its product market fit,” a former Fab employee said.

3 – It had a CEO with an interesting personality and background who wrote an impressive memo to his stakeholders about the mistakes made.

I won’t attempt to summarize or try to add interesting anecdotes to the article as its superbly written and very insightful. I recommend you take a look. There are a lot golden nuggets in their which many founders can learn something from.

http://www.businessinsider.com/how-billion-dollar-startup-fab-died-2015-2

In early 2011, Bradford Shellhammer and Jason Goldberg shut down Fabulis and started Fab.

In early 2011, Bradford Shellhammer and Jason Goldberg shut down Fabulis and started Fab.

Spectatular failure from red-hot startup Fab that raised $330 million and then went bust

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Author: Miklos Grof

Miklos is the CEO and co-founder of Fundacity. Fundacity is making startups investing easier. Fundacity already supports all the notable accelerators in LatAm in their startup selection and management and they are expanding rapidly across Asia-Pacific and Europe. With the recently launched Fundacity Investments Clubs it seeks to simplify the startup investing process in emerging markets and make it accessible to more people. Miklos has unique and extensive experience in start-up formation, business development and venture financing. He has raised and evaluated investment offers in venture capital from angels and VCs from three continents for a variety of deals. He thrives at launching businesses and making sales in new geographies. Miklos currently serves as a financial advisor and mentor for various start-ups including Taggify (an online contextual advertising company based in New York and Buenos Aires). At Taggify, Miklos advises on fundraising, financial reporting to the board of investors, tax filling and cash flow management. Miklos completed his MsC in Finance at the London School of Economics and previously worked in corporate finance at PricewaterhouseCoopers in London, fund sales at UniCredit Vienna and economic research at Erste Bank Budapest. He is a Chartered Accountant with the ICAEW, Institute of Chartered Accountant England and Whales and is quinti-lingual. He is passionate about startups and entrepreneurship and spends his free time engaging with the startup community.

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