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