VENTURE CAPITAL SHOULD FUEL YOUR COMPANY, NOT YOUR EGO: 6 CRITICAL LESSONS FROM THE FALL OF FAB.COM

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If there is one case study in startup land that will haunt investors and entrepreneurs for years to come, it's Fab. The former design flash-sale site pivoted more times than Madonna reinvented herself—and today, the sorry story of Fab came to an anticlimactic resolution. After raising $325 million from everyone from Andreessen Horowitz to China's Tencent at a billion dollar valuation, the shell of Fab's formerly fab self (sorry) has finally sold to PCH for, reportedly, a meager $7 million in cash and $8 million in stock. How did this once Internet darling unravel so spectacularly? For entrepreneurs and investors looking to avoid the same mistakes as Fab, here are six lessons to extract from this e-commerce train wreck: Investors, Sometimes Failure Actually Means Failure Fab cofounder Jason Goldberg has a track record of running startups into the ground. Earlier in his career, he founded a search engine called Jobster—and managed to vaporize $48 million in funding before the company was sold for parts. "I was this poster child in Seattle of this guy who had burned through VC money, like a pariah," Goldberg told Fast Company in 2013. But Silicon Valley investors, who tend to view startup "failure" as a virtue, ignored the red flags—and Goldberg managed to talk investors into throwing a whopping $325 million at Fab... Read more at Fast Company