Case Study

Fabric

Fabric 150 150 Derek Hanchi

Fabric, Inc.

Company:

Fabric is a Next Generation Consumer Data Marketplace and Data Source attempting to disrupt the $100B Digital Advertising as well as the future Trillion-dollar Data Marketplaces.

Problem:

Fabric was embarking on an enormous undertaking and starting at the concept phase.   The goal was to raise $100M to help build the consumer data marketplace and acquire sufficient number of users to reach critical mass and reach a tipping point of market acceptance. 

Task:

I engaged Fabric at the concept phase and was tasked with working with the Founder to help find a way to raise $100M which Fabric would use to build the Data Marketplace platform and acquire users.

Solution:

We decided that a lean agile approach to building Fabric was not the direction we wanted to take.   We wanted to explore the idea of selling this concept as so disruptive that we could attract some influential industry players and raise some substantial investment. 

Implementation:

We understood that in order to have a chance at disrupting a very established digital advertising and data marketplace we would need some experienced individuals on our advisory board and Board of Directors as well as some heavy hitting partners.

The Founder and I tapped our networks and we were able to get meetings with some established Advertising Agencies and convinced them that change in the digital advertising and data marketplace was going to happen soon and they could either help write the new constitution or adapt and react to it down the road. We were successful at Partnering with Key Agencies such as: M&C Saatchi, Molio and Ignited.

M&C Saatchi was tasked with managing our Brand and Master Communication Strategy and helping us create the messaging to acquire users.   Molio was tasked with Market Testing the messaging with various audiences and Ignited was tasked with helping us formulate the platform experience and market test it.

We then decided we needed a way to help us cost effectively acquire users and we were fortunate to partner Speakr. Speakr is an influencer platform and has 30 of the top 100 Instagram influencers as part of their network. Speakr was tasked with helping Fabric amplify M&C Saatchi’s messaging to cost effectively bring users onto our platform.

While we addressed the marketing side of the business we realized we also needed some very successful and experienced BOD members to get behind our deal.   We were fortunate to bring on Andrew Filipowski who sold his software company to Computer Associates for $4B along with Jeff Davis who was a former successful P&G Executive and later started and sold 2 startups.   

We decided that the best approach to raising $100M was to do a Security Token Offering (STO) which is the next evolution of the ICO.   In order to initiate the STO we needed a strong Securities Attorney and Investment Bank to help initiate the funding raising.   With the help of Andrew Filipowski we were introduced to Smith Anderson as our Securities Attorney and Entoro which was a niche Investment Bank specializing in STO offerings.  

We were able to secure over $1M in Friends and Family and partner services.  

Stay tuned –  we are just getting started on this business!

 

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