Fab.com Acquires Retail Startup FashionStake
Fab.com, a design-focused daily e-mail deals website, has acquired FashionStake, a two year old retail startup company that was funded by Battery Ventures. FashionStake founders Daniel Gulati and Vivian Weng will become Fab.com’s heads of expanding fashion division. After the acquisition is complete, FashionStake will cease their operations.
When FashionStake first launched in September 2010, consumers were asked to support emerging designers by buying stakes in their collections, which had not been produced at the time. When the collections were complete, the consumers would get access to discounts and other privileges. Gulati and Weng learned shortly after that consumers were more interested in pre-ordering items with discounts so they switched to that model.
FashionStake changed their business model to become a traditional online boutique in March 2011. Consumers were able to buy clothes and accessories from designers that were not available in stores like Macy’s or Saks. Fab.com CEO Jason Goldberg was most interested in the relationships that Gulati and Weng formed with over 400 indie designers on FashionStake.
[Mashable]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry