Tuesday June 25, 2019

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Fab.com Gets Huge Investment from Venture Firms

Image representing Fab.com as depicted in Crun...

Image via CrunchBase

This week, NY-based  flash-sale site Fab.com received $40 million from venture firm, Andreessen Horowitz, and other investors. The site changed its original business, which was managing a gay social network, and now focuses on selling discounted furniture, jewelry and art in 72-hour sales; the pivot came when the founders came to the realization that their social network for the gay community was not going to bring in as much business as they had hoped.

What makes Fab.com so desirable to investors, according to The Wall Street Journal, is its recent rapid growth. Orders have doubled to 100,000 in just the past month, and sales average approximately $1.4 million each week with about 14 sales per day. They currently have 120 employees but expect to hire another 80 across all locations. This growth is due partly to their linkage to social media, whereby customers are able to share what they bought on Facebook and Twitter.

Wall Street Journal (subscription required)