PR, Access and tech are NOT enough to make BAD fashion ideas take off #SocialCommerce #FashionTech #Stratup #Funding


See on Scoop.itFashion Technology Designers & Startups

Fashion finance: Start-up funding proceeds with fits and starts – FT.com
“Despite a recent explosion in third-party capital for starry fashion eventures, from the $44m garnered by Far Fetch this March to the $229m raised by Gilt Groupe over five funding rounds, a recipe for success remains elusive.

Bonnie Sandy‘s insight:

I have to prepare a Funding  101 for Indie designers… there are 3 core 

debt based
equity based

peer to peer – Crowdfunding  Pretail and traditional models. 

Many indie designers who actually know the fashion sector are pushed towards debt based funding  rather than equity when they attend business training  courses. Those that know business and tech  access equity based funding. The challenge is they  do NOT understand fashion.

I cringe when I see how many have failed and the amount of money that literally goes down the drain. I’m not surprised few really have any real Fashion  knowledge… and by that I mean successfully supplyng the fashion needs of women. What women (and to a lesser extent  men)  want have not changed. Great fitting beautiful items that make them stand out! it’s simple, uncomplicated, seems easy, So why do fashion tech companies fail… There is a lot of opportunity in FashionTech if only they can literally get it together

In the next few scoops I’ll highlight some new fashion tech  companies that promise the answer… and I’ll try not to comment.

Now these sites are approaching  designers  with offers of crowd funding and no real idea of what they are  doing. My advise to designers, BEWARE, get an advisor and think things through.

I will be discussing these and other options options early next  year with designer in the virtual support  program I run  for designer.  www.bonniesandy.com

See on www.ft.com

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