The site will allow customers to buy furniture online from 500 retailers including John Lewis, Argos and Marks & Spencer. Over £5m of funding has been raised from investors including the Rothschild family.
enables users to see how the furniture will look in their house before they buy it, thanks to a 3D design tool.
The site also includes a discussion forum where people can discuss decorating and look at other users' rooms.
As well as offering every type of furniture, Hoberman wants the site to provide visitors with the location of the nearest branch of a store they like, as well as real-time photographs of the stock.
Hoberman has taken the role of executive chairman of Mydeco while Fox, who last year joined the board of Marks & Spencer, is a non-executive director of the company.
Hoberman said: "We, as a nation, spend about £14bn a year furnishing our homes. Yet the internet hasn't been used to bring it all together and make the shopping experience easier and more enjoyable."
Separately, Mydeco has appointed digital agency iCrossing to handle its digital and search marketing activity. The campaign will focus on enhancing search rankings, increasing traffic levels and making mydeco an attractive proposition for online advertisers.
Arjo Ghosh, chief executive of iCrossing, said: "Mydeco's portal platform sets new standards in retailing on the web. With our close client partnership and our radical thinking, we created an innovative and integrated programme for mydeco that will deliver an effective campaign and long- term results."