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	<title>Betabeat &#187; Fab.de</title>
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		<title>Betabeat &#187; Fab.de</title>
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		<title>Casacanda CEO Roman Kirsch on the Berlin Startup Scene and Becoming Fab.de</title>

		<comments>http://betabeat.com/2012/02/casacanda-ceo-roman-kirch-on-the-berlin-startup-scene-and-becoming-fab-de/#comments</comments>
		<pubDate>Mon, 27 Feb 2012 11:30:14 -0400</pubDate>
					<link>http://betabeat.com/2012/02/casacanda-ceo-roman-kirch-on-the-berlin-startup-scene-and-becoming-fab-de/</link>
			<dc:creator>Adrianne Jeffries</dc:creator>
				
		<guid isPermaLink="false">http://www.betabeat.com/?p=30554</guid>
		<description><![CDATA[<p><div id="attachment_30562" class="wp-caption alignleft" style="width: 610px"><img class="size-large wp-image-30562  " title="Roman Kirsch fab.de" src="http://nyobetabeat.files.wordpress.com/2012/02/roman-kirsch-fab-de_.jpg?w=1024&h=576" alt="" width="600" height="338" /><p class="wp-caption-text">Mr. Kirsch.</p></div></p>
<p><em><em>Wilkommen! This is part one of Betabeat's new mini-series, Die Startup-Szene, a peek at the <em>up-and-coming tech hub of Berlin. </em></em>We sat down with entrepreneurs from three leading young companies here in the city that is only <em><em>very, very occasionally referred to as <a href="http://venturevillage.eu/video-shit-that-silicon-allee-says">Silicon Allee</a>.</em></em></em></p>
<p>Roman Kirsch, who skipped two grades, has studied in Los Angeles and London, backpacked in Australia and interned at Goldman Sachs. In July 2011, he and two cofounders started an Internet company most recently reportedly valued at $10 million. About six months later, <a href="http://www.betabeat.com/2012/02/20/fab-euro-fab-de-acquires-casacanda-germany-austria-switzerland-02202012/">he sold it to one of the hottest startups in New York</a>. He is 23.</p>
<p>It's enough to make you wish for some<em> Schadenfreude</em>. Until you meet Mr. Kirsch, that is, who gave Betabeat a hug when we met with him on Monday morning at Wohnzimmer Bar, or "living room bar," a quiet and quaintly-decorated cafe in Berlin's startup-heavy Prenzlauer neighborhood. Wrapped in Abercrombie, he ordered a hot mint tea with honey in place of coffee. He struck us immediately as, well, <em>calmer</em> than the average starry-eyed 20-something New York startupper, an even speaker with wry, smiling eyes. Still, he described his company's acquisition by Fab.com as "the best thing that could ever happen." <!--more-->The exact terms were undisclosed, but it was an all-stock sale.</p>
<p>Mr. Kirsch launched Casacanda, a flash sales site focused on well-designed, unique products, with two cofounders he met in business school. (The school, <a href="http://www.whu.edu/en/programs/international-programs/exchange-program/germany-whu-at-a-glance/">WHU</a>, located in a small town between Frankfurt and Cologne, produces most of the startup entrepreneurs in Germany, Mr. Kirsch said, including the <a href="http://www.quora.com/What-do-people-know-about-the-Samwer-Brothers-of-the-European-Founders-Fund">infamous copycat brothers, the Samwers</a>, as well as the founder of DailyDeal, which was recently bought by Google.) The cofounders bootstrapped until the fall, when they raised a quick $1 million right before the site's launch in September.</p>
<p>The company started making millions in revenue as it grew to 250,000 members and 45 employees. That's when it caught the attention of Jason Goldberg, the CEO of New York's <a href="http://www.betabeat.com/2011/11/09/on-the-five-month-anniversary-of-fab-3-0-startup-shows-its-traffic/">fast-growing flash sales destination</a> Fab.com. The road to acquisition started when Mr. Goldberg was in Berlin to give a speech. He budgeted 30 minutes to meet with the Casacanda team. He was so enthralled with Casacanda that he tried to cancel his talk. That proved difficult, so he met with the young founders afterward. Mr. Goldberg was drawn to Casacanda's attention to design details as well as the details of its numbers; its focus on finding products so unique that members would be compelled to share them on Twitter and Facebook; and the raw ambition of the founders. Mr. Goldberg, who aspires to make Fab the next Amazon, is a great appreciator of ambition.</p>
<p>The acquisition, a stock-only deal, solidified Casacanda/Fab.de's position as a leader and role model for the fledgling Berlin startup community. As of now, Berlin's startup scene has a few standouts. SoundCloud, the audio hosting platform, is internationally know. Wooga, Germany's Zynga, is the second-largest social gaming company on Facebook. But unfortunately, Germany still has the reputation as a sort of European copy machine for successful American startups.</p>
<p>That's because investors in Germany are cautious, Mr. Kirsch said, and it's difficult to get anything truly new funded. The copycats are also an important part of the Berlin ecosystem, he said, and in addition to introducing people to entrepreneurship, many of the copycats evolve beyond clonehood. "It's harder to sell innovation," he said. "So people say, 'If I'm going to do something really innovative, no one will fund me anyway. When I get the money I can still be innovative.'"</p>
<p>Mr. Kirsch decided to be an entrepreneur because of the speakers who came to WHU. The investment bankers and consultants pitched their industries hard, he said, but there was something phony about it. By contrast, the entrepreneurs "had these little sparks in their eyes" and truly seemed passionate about what they were doing.</p>
<p>Although it didn't have the double mega-pivot Fab did (the progression as described by its CEO once included "Facebook for gays" and "Groupon for gays"), Casacanda started out with a focus on home decor and interior design, and then expanded its product catalogue after the site launched. Mr. Kirsch is a big fan of pivots, himself. "Every day, you have to ask yourself, 'is this the best we can do?'" Mr. Kirsch said, citing Nokia, which originally sold a diverse product line that <a href="http://thenextweb.com/insider/2011/09/13/10-great-tech-company-pivots/">included rubber boots</a>.</p>
<p>As Fab.de--Fab's first international acquisition, by the way--the company will soon have about 80 percent product overlap with its U.S. counterpart, as most suppliers are more than happy to sell in both countries. It's up to 55 employees and in the process of moving into a new office. The flash sales space is hot, and Mr. Kirsch feels motivated by all the competition between startups on the Internet. "Some people even refer to it as war. Every day you have to prove that you're the best person to serve your customers," he said.</p>
<p>Last week, on the day Casacanda relaunched as Fab.de, it snowed hard in Berlin--which was perfect timing. "People stay at home and just have more time to browse the Internet," Mr. Kirsch said. (Also, Betabeat arrived after the melt.) He gave Betabeat another hug as we parted, and recommended we check out Berlin's art history museum.</p>
<p><em>CORRECTION: An earlier version of this story misspelled Mr. Kirsch's surname. Betabeat regrets the error.</em></p>
]]></description>
		<content:encoded><![CDATA[<p><div id="attachment_30562" class="wp-caption alignleft" style="width: 610px"><img class="size-large wp-image-30562  " title="Roman Kirsch fab.de" src="http://nyobetabeat.files.wordpress.com/2012/02/roman-kirsch-fab-de_.jpg?w=1024&h=576" alt="" width="600" height="338" /><p class="wp-caption-text">Mr. Kirsch.</p></div></p>
<p><em><em>Wilkommen! This is part one of Betabeat's new mini-series, Die Startup-Szene, a peek at the <em>up-and-coming tech hub of Berlin. </em></em>We sat down with entrepreneurs from three leading young companies here in the city that is only <em><em>very, very occasionally referred to as <a href="http://venturevillage.eu/video-shit-that-silicon-allee-says">Silicon Allee</a>.</em></em></em></p>
<p>Roman Kirsch, who skipped two grades, has studied in Los Angeles and London, backpacked in Australia and interned at Goldman Sachs. In July 2011, he and two cofounders started an Internet company most recently reportedly valued at $10 million. About six months later, <a href="http://www.betabeat.com/2012/02/20/fab-euro-fab-de-acquires-casacanda-germany-austria-switzerland-02202012/">he sold it to one of the hottest startups in New York</a>. He is 23.</p>
<p>It's enough to make you wish for some<em> Schadenfreude</em>. Until you meet Mr. Kirsch, that is, who gave Betabeat a hug when we met with him on Monday morning at Wohnzimmer Bar, or "living room bar," a quiet and quaintly-decorated cafe in Berlin's startup-heavy Prenzlauer neighborhood. Wrapped in Abercrombie, he ordered a hot mint tea with honey in place of coffee. He struck us immediately as, well, <em>calmer</em> than the average starry-eyed 20-something New York startupper, an even speaker with wry, smiling eyes. Still, he described his company's acquisition by Fab.com as "the best thing that could ever happen." <!--more-->The exact terms were undisclosed, but it was an all-stock sale.</p>
<p>Mr. Kirsch launched Casacanda, a flash sales site focused on well-designed, unique products, with two cofounders he met in business school. (The school, <a href="http://www.whu.edu/en/programs/international-programs/exchange-program/germany-whu-at-a-glance/">WHU</a>, located in a small town between Frankfurt and Cologne, produces most of the startup entrepreneurs in Germany, Mr. Kirsch said, including the <a href="http://www.quora.com/What-do-people-know-about-the-Samwer-Brothers-of-the-European-Founders-Fund">infamous copycat brothers, the Samwers</a>, as well as the founder of DailyDeal, which was recently bought by Google.) The cofounders bootstrapped until the fall, when they raised a quick $1 million right before the site's launch in September.</p>
<p>The company started making millions in revenue as it grew to 250,000 members and 45 employees. That's when it caught the attention of Jason Goldberg, the CEO of New York's <a href="http://www.betabeat.com/2011/11/09/on-the-five-month-anniversary-of-fab-3-0-startup-shows-its-traffic/">fast-growing flash sales destination</a> Fab.com. The road to acquisition started when Mr. Goldberg was in Berlin to give a speech. He budgeted 30 minutes to meet with the Casacanda team. He was so enthralled with Casacanda that he tried to cancel his talk. That proved difficult, so he met with the young founders afterward. Mr. Goldberg was drawn to Casacanda's attention to design details as well as the details of its numbers; its focus on finding products so unique that members would be compelled to share them on Twitter and Facebook; and the raw ambition of the founders. Mr. Goldberg, who aspires to make Fab the next Amazon, is a great appreciator of ambition.</p>
<p>The acquisition, a stock-only deal, solidified Casacanda/Fab.de's position as a leader and role model for the fledgling Berlin startup community. As of now, Berlin's startup scene has a few standouts. SoundCloud, the audio hosting platform, is internationally know. Wooga, Germany's Zynga, is the second-largest social gaming company on Facebook. But unfortunately, Germany still has the reputation as a sort of European copy machine for successful American startups.</p>
<p>That's because investors in Germany are cautious, Mr. Kirsch said, and it's difficult to get anything truly new funded. The copycats are also an important part of the Berlin ecosystem, he said, and in addition to introducing people to entrepreneurship, many of the copycats evolve beyond clonehood. "It's harder to sell innovation," he said. "So people say, 'If I'm going to do something really innovative, no one will fund me anyway. When I get the money I can still be innovative.'"</p>
<p>Mr. Kirsch decided to be an entrepreneur because of the speakers who came to WHU. The investment bankers and consultants pitched their industries hard, he said, but there was something phony about it. By contrast, the entrepreneurs "had these little sparks in their eyes" and truly seemed passionate about what they were doing.</p>
<p>Although it didn't have the double mega-pivot Fab did (the progression as described by its CEO once included "Facebook for gays" and "Groupon for gays"), Casacanda started out with a focus on home decor and interior design, and then expanded its product catalogue after the site launched. Mr. Kirsch is a big fan of pivots, himself. "Every day, you have to ask yourself, 'is this the best we can do?'" Mr. Kirsch said, citing Nokia, which originally sold a diverse product line that <a href="http://thenextweb.com/insider/2011/09/13/10-great-tech-company-pivots/">included rubber boots</a>.</p>
<p>As Fab.de--Fab's first international acquisition, by the way--the company will soon have about 80 percent product overlap with its U.S. counterpart, as most suppliers are more than happy to sell in both countries. It's up to 55 employees and in the process of moving into a new office. The flash sales space is hot, and Mr. Kirsch feels motivated by all the competition between startups on the Internet. "Some people even refer to it as war. Every day you have to prove that you're the best person to serve your customers," he said.</p>
<p>Last week, on the day Casacanda relaunched as Fab.de, it snowed hard in Berlin--which was perfect timing. "People stay at home and just have more time to browse the Internet," Mr. Kirsch said. (Also, Betabeat arrived after the melt.) He gave Betabeat another hug as we parted, and recommended we check out Berlin's art history museum.</p>
<p><em>CORRECTION: An earlier version of this story misspelled Mr. Kirsch's surname. Betabeat regrets the error.</em></p>
]]></content:encoded>
		<wfw:commentRss>http://betabeat.com/2012/02/casacanda-ceo-roman-kirch-on-the-berlin-startup-scene-and-becoming-fab-de/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	
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			<media:title type="html">jhanasobserver</media:title>
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			<media:title type="html">Roman Kirsch fab.de</media:title>
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		<title>Fab Goes Euro Flash: Acquires Casacanda and Relaunches It as Fab.de In Germany, Austria, And Switzerland</title>

		<comments>http://betabeat.com/2012/02/fab-euro-fab-de-acquires-casacanda-germany-austria-switzerland-02202012/#comments</comments>
		<pubDate>Mon, 20 Feb 2012 16:06:44 -0400</pubDate>
					<link>http://betabeat.com/2012/02/fab-euro-fab-de-acquires-casacanda-germany-austria-switzerland-02202012/</link>
			<dc:creator>Nitasha Tiku</dc:creator>
				
		<guid isPermaLink="false">http://www.betabeat.com/?p=29859</guid>
		<description><![CDATA[<p><img class="alignleft size-full wp-image-29885" style="margin: 5px 10px;" title="casacanda" src="http://nyobetabeat.files.wordpress.com/2012/02/casacanda1.jpg" alt="" width="450" height="265" />Another month, another milestone for <a href="http://www.betabeat.com/2011/07/26/three-time-pivot-champion-fab-com-raises-8-m/">master pivoter</a> Jason Goldberg and his go-go daily deals for design startup, Fab. Today, the company <a href="http://betashop.com/post/17967539799/fab-acquires-casacanda-and-launches-as-fab-de-serving">announced</a> that it has acquired <a href="https://casacanda.de/">Casacanda</a>, a Berlin-based flash sales company. Along with the acquisition, Casacanda will relaunch as as <a href="https://fab.de/">Fab.de</a>, serving Germany, Austria, and Switzerland.</p>
<p>Last November<a href="http://cctldinvestors.com/fab-de-sells-for-50000-on-sedo/"> ccTLDInvestors,</a> "the online magazine for global domain  investors" noted that a company called Sedo made a tidy profit by  selling Fab.de for $50,000. That same week, Fab also purchased Fab.eu  for 35,000 Euros, so expect more updates for Fab's fabulous European  adventure.</p>
<p>According to <a href="http://betashop.com/post/17967539799/fab-acquires-casacanda-and-launches-as-fab-de-serving">Mr. Goldberg</a>, Casacanda has been on something of a roll. The site has 250,000 members and grew by 90,000 in just the last 30 days. Add that to Fab's existing membership, and the company has won over more than 2.3 million users in the past 8 months. <!--more--></p>
<p>Mr. Goldberg <a href="http://betashop.com/post/16464519605/fab-celebrates-2-million-members-with-major-new">dropped a few clues</a> about international expansion at the end of January when he celebrated hitting the 2 million member mark. For a startup that <a href="http://www.betabeat.com/2011/12/07/master-pivoter-fab-com-lands-a-200m-valuation-for-flash-sales-on-design-items/">boosted its valuation by a $175 million in six months</a>, it makes sense to leap across the Atlantic in search of continued growth. The search for new verticals and markets to sustain growth is something<a href="http://www.betabeat.com/2012/02/01/gilt-groupe-layoffs-ipo-kevin-ryan-lot18-rue-lala-flash-sales-02012012/"> other flash sales sites, like Gilt Groupe, which recently laid off 10 percent of its staff, have struggled with</a> as well. As Mr. Goldberg tells it, going global was part of Fab's <a href="http://betashop.com/post/17967539799/fab-acquires-casacanda-and-launches-as-fab-de-serving">plan all along</a>:</p>
<blockquote><p>As early as October 2011  when we were just 5 months old, we began thinking and strategizing about  which markets we would bring the Fab model to next. We quickly honed in  on Germany, and Berlin in particular, as being the first major Fab  center outside of the U.S. It’s a natural first-choice; the German  economy is strong, Berlin is an awesome startup hub, and the German  people have deep rooted passion for design and the types of products we  sell on Fab. In fact, the stuff we sell every day on Fab drives a lot of  inspiration from German design and many of the Fab products are very  similar to what you might find in the boutiques and shops of German  cities such as Cologne, Stuttgart, Hamburg, and Berlin.</p>
<p>We did a study of the  German market in October and November and went through a decision  process of whether to build or acquire. In early December we took a trip  to Berlin and met with a few potential partners to explore launching  Fab in Germany. Of all the teams and people we met with in Berlin, we  were far and away most impressed with the founders and team at  Casacanda. We returned to Berlin in January and spent even more time  with Casacanda to figure out if it was a good match. It was, and then  some. Casacanda’s CEO, Roman Kirsch, is a true superstar. That guy is so  impressive that I immediately wanted him on team Fab. Watch out for  Roman.</p></blockquote>
<p>By Mr. Goldberg's estimates, this acquisition will enable Fab to generate at least 10 to 20 percent of its overall revenue from international sales this year. Hey, Andreessen Horowitz doesn't<a href="http://www.betabeat.com/2011/12/07/master-pivoter-fab-com-lands-a-200m-valuation-for-flash-sales-on-design-items/">"plow" $40 million</a> into an eight-month old startup without thinking about the bigger picture.</p>
]]></description>
		<content:encoded><![CDATA[<p><img class="alignleft size-full wp-image-29885" style="margin: 5px 10px;" title="casacanda" src="http://nyobetabeat.files.wordpress.com/2012/02/casacanda1.jpg" alt="" width="450" height="265" />Another month, another milestone for <a href="http://www.betabeat.com/2011/07/26/three-time-pivot-champion-fab-com-raises-8-m/">master pivoter</a> Jason Goldberg and his go-go daily deals for design startup, Fab. Today, the company <a href="http://betashop.com/post/17967539799/fab-acquires-casacanda-and-launches-as-fab-de-serving">announced</a> that it has acquired <a href="https://casacanda.de/">Casacanda</a>, a Berlin-based flash sales company. Along with the acquisition, Casacanda will relaunch as as <a href="https://fab.de/">Fab.de</a>, serving Germany, Austria, and Switzerland.</p>
<p>Last November<a href="http://cctldinvestors.com/fab-de-sells-for-50000-on-sedo/"> ccTLDInvestors,</a> "the online magazine for global domain  investors" noted that a company called Sedo made a tidy profit by  selling Fab.de for $50,000. That same week, Fab also purchased Fab.eu  for 35,000 Euros, so expect more updates for Fab's fabulous European  adventure.</p>
<p>According to <a href="http://betashop.com/post/17967539799/fab-acquires-casacanda-and-launches-as-fab-de-serving">Mr. Goldberg</a>, Casacanda has been on something of a roll. The site has 250,000 members and grew by 90,000 in just the last 30 days. Add that to Fab's existing membership, and the company has won over more than 2.3 million users in the past 8 months. <!--more--></p>
<p>Mr. Goldberg <a href="http://betashop.com/post/16464519605/fab-celebrates-2-million-members-with-major-new">dropped a few clues</a> about international expansion at the end of January when he celebrated hitting the 2 million member mark. For a startup that <a href="http://www.betabeat.com/2011/12/07/master-pivoter-fab-com-lands-a-200m-valuation-for-flash-sales-on-design-items/">boosted its valuation by a $175 million in six months</a>, it makes sense to leap across the Atlantic in search of continued growth. The search for new verticals and markets to sustain growth is something<a href="http://www.betabeat.com/2012/02/01/gilt-groupe-layoffs-ipo-kevin-ryan-lot18-rue-lala-flash-sales-02012012/"> other flash sales sites, like Gilt Groupe, which recently laid off 10 percent of its staff, have struggled with</a> as well. As Mr. Goldberg tells it, going global was part of Fab's <a href="http://betashop.com/post/17967539799/fab-acquires-casacanda-and-launches-as-fab-de-serving">plan all along</a>:</p>
<blockquote><p>As early as October 2011  when we were just 5 months old, we began thinking and strategizing about  which markets we would bring the Fab model to next. We quickly honed in  on Germany, and Berlin in particular, as being the first major Fab  center outside of the U.S. It’s a natural first-choice; the German  economy is strong, Berlin is an awesome startup hub, and the German  people have deep rooted passion for design and the types of products we  sell on Fab. In fact, the stuff we sell every day on Fab drives a lot of  inspiration from German design and many of the Fab products are very  similar to what you might find in the boutiques and shops of German  cities such as Cologne, Stuttgart, Hamburg, and Berlin.</p>
<p>We did a study of the  German market in October and November and went through a decision  process of whether to build or acquire. In early December we took a trip  to Berlin and met with a few potential partners to explore launching  Fab in Germany. Of all the teams and people we met with in Berlin, we  were far and away most impressed with the founders and team at  Casacanda. We returned to Berlin in January and spent even more time  with Casacanda to figure out if it was a good match. It was, and then  some. Casacanda’s CEO, Roman Kirsch, is a true superstar. That guy is so  impressive that I immediately wanted him on team Fab. Watch out for  Roman.</p></blockquote>
<p>By Mr. Goldberg's estimates, this acquisition will enable Fab to generate at least 10 to 20 percent of its overall revenue from international sales this year. Hey, Andreessen Horowitz doesn't<a href="http://www.betabeat.com/2011/12/07/master-pivoter-fab-com-lands-a-200m-valuation-for-flash-sales-on-design-items/">"plow" $40 million</a> into an eight-month old startup without thinking about the bigger picture.</p>
]]></content:encoded>
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