What’s worth One Billion Dollars today and “tens of millions” tomorrow?
Try the Billion Dollar Startup Club member Fab.com. http://graphics.wsj.com/billion-dollar-club/
Founded in 2011 as a gay social site that moved into retail sales, it raised over $300 million from smart money venture capitalists.
But it expanded too quickly, according to the Wall Street Journal, and at one point was burning through $12 million/month. Sales did not keep up and the company spiraled downward. It’s now being sold to a vulture buyer.
The cautionary tale is here: http://blogs.wsj.com/digits/2015/03/03/boom-and-bust-fab-coms-fire-sale-is-cautionary-tale/