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Daily Dealer Fab.com Does Fashion Deal

  • mashable, Friday, January 13, 2012 12:14 PM

Meanwhile, in the still evolving world of daily deals, design-focused Fab.com has acquired FashionStake for an undisclosed sum. Backed by Battery Ventures, FashionStake has spent two years mastering what investors call the “pivot,” or a change in business strategy. Initially, the site served as a platform for users to support emerging designers by buying “stakes” in yet-to-be-produced collections in exchange for discounts and other privileges when said collections were manufactured.

As Mashable reports, however, the founders soon realized that “customers were more excited about pre-ordering items at a discount, and so they quickly adapted the site to that model.” More recently, FashionStake repositioned itself again as a more traditional online boutique. Yet, Fab.com CEO Jason Goldberg said he has no plans to incorporate any part of FashionStake’s retail model or backend technology.

Rather, Goldberg tells Mashable he was largely attracted to the relationships that the site’s founders had developed with the more than 400 independent designers featured on FashionStake. As such, said founders, Daniel Gulati and Vivian Weng, are now expected to head up Fab.com‘s fashion vertical.

 


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