It’s tough out there. When it comes to technology companies, it can really get tough and rough in the business world. You might have a hotshot idea but at the end of the day, it’s the market that will decide whether you go IPO, you get bought out for a lot of money or you go belly up. This is precisely the kind of risks that Fab.com faced and last year, things weren’t looking good for this design commerce site. The home design and décor website was facing uncertain times and it had to lay off a hundred fifty people from its European operations.
If that wasn’t bad enough, it let go of its chief European officer but just like with many other things in the technology world, things develop quickly. While you may think you are going one direction, there might be certain situations happening to your competitors that might lead you to taking another direction. This is precisely what happened when Myfab.com decided to sell some of its assets to Fab.com. Myfab.com got funded for $10.2M and the asset sale was $4.3M. We are still unclear on what specifically are the kinds of assets that Fab bought out from Myfab but one thing is clear: with this asset purchase, Fab is once again expanding in the European market and this is good news for that particular market segment.
The interesting thing about the Myfab acquisition is that it allows buyers to get direct access to inventory figures of manufacturers and allows designers maximum flexibility in terms of putting together interior design and fleshing out an initial design idea. With this acquisition, maybe Fab saw solutions that it didn’t have before.