was another power move for Michael, Daniel and Katie that’s helped boost its success. The city has become a hub for tech startups earning the name ‘silicon beach’. Much like Visionary of the Year Chris DeWolfe, CEO of Jam The Art and Science of Customer City, Daniel cites some of the same LA based successful companies that he admires includSatisfaction To say the expansion has been a success is an ing Tinder (the top dating site in the world) and understatement. Th anks in part to partner- Bird (a dockless scooter-share service). ships with celebrities such as tennis star Venus “L.A. has a really great storytelling DNA Williams and actress Brooke Burke, the boxes and a lot of what we are as a brand and as have sold out every season, and turned a small a company is about storytelling around our business of 25 employees into an international products and our experiences,” Daniel says. company with more than 450 employees glob- “That drives a lot of what we do.” ally. Additionally, Forbes recently reported the company’s more than 1M subscribers are now More than Just a Business generating an estimated $300M in revenue. Raised by Iranian immigrants who moved to When asked the secret of FabFitFun’s suc- the U.S. in the late 1970s after leaving evecess, Michael says, “We focus relentlessly on rything they owned behind them, Daniel the customer and delivering as much value as and Michael say their parents have been their possible. I think that’s the hallmark of a good inspiration. Their father was an ob-gyn who consumer company.” became an entrepreneur, and their maternal Meeting customer needs is, Michael says, uncles, who owned a fabric company, have “part art, part science.” For FabFitFun that served as mentors over the years. The brothers means developing more than 500 variations of also inherited a spirit of serving others. the boxes per season for their customers, with “My parents and I and Dan are manifeshelp from Kitchens’ merchandising team’s on- tations of the American dream and I want to going surveys and a consumer insight and data give back to make sure that that stays alive science effort. for my children and for future generations,” “When we’re talking to a brand, we actual- Michael says. Philanthropy has become a part of FabFitly have a good sense of whether or not a certain product is going to work within our ecosystem,” Fun’s DNA. Every season FabFitFun features Michael says. a nonprofit and raises $30,000 to $50,000 Daniel says good old-fashioned smart for that organization. Moreover, all three spending has also helped the company thrive co-founders have made it a point to underin a competitive environment. “We’re not score the importance of uplifting women at cheap, but we’re disciplined about our capital the company. allocation,” Daniel says. “We’re really proud of being a women-first The trio recently raised $80M in Series A company,” Michael says. “We feel really happy funding from Kleiner Perkins to help take their that we’re part of this movement of women vision to the next level with a 600,000-square- affi rming their place in the business world. foot fulfi llment center in Chino Hills, Calif., We take pride in not only cultivating women new products, an online store with mem- leaders in the company but also to highlight bers-only deals, and more. women founders in the products that are in “We want to be positioned next to Amazon the boxes every season.” Prime, Netfl ix, Spotify, Costco as one of the Looking ahead, the brothers only see pohandful of indispensable memberships that tential. deliver the most value possible,” Michael says. “Just like getting on Oprah’s Favorite Th ings list or being featured in a Super Bowl The Los Angeles Effect commercial, we hope that being featured in Positioning FabFitFun in the heart of Los An- FabFitFun is that kind of change moment for geles the entertainment capital of the world, small companies,” Michael says. END streaming video service that offers on-demand workouts, daily lifestyle content, access to the online community, and members-only shopping experiences.
Innovation - Broukhim
1. The FabFitFun founders holding samples of their subscription boxes 2. Daniel Broukhim, Co-founder & Co-CEO 3. Katie Rosen Kitchens, Co-Founder & Editor-in-Chief 4. Michael Broukhim, Co-founder & Co-CEO
CSQ Q1 2019
Q1 2019 | Innovation & Technology