FashInvest along with 2010 Alum – MyNines – Featured as Cover Story for WWD

February 14, 2011 – VC Funding is Growing Again – Womens Wear Daily

Article By: Vicki Young

Any young designer start-ups out there looking for investments to reach the next phase of growth? Well, the venture capitalists are back.

Overall VC investments, which hit a high of $100 billion in 2000, were around $25 billion last year after the economic meltdown and are expected to rebound to about $30 billion this year, financial sources estimated. And while it’s too early to tell what percentage of the share of VC funding will go toward fashion and retail, VC firms are already trawling for firms to back given the growth opportunities they present.

What kind of companies do they like? Firms with a retail component, for one, and Internet connections make a firm even more attractive. That’s because, in addition to e-commerce’s continuing strong growth, a presence on the Web gives the operation an immediate global reach.

A number of fashion companies have already completed their rounds of VC financing. And most have merged retail and the Internet in a big way.

Men’s online apparel firm Bonobos, founded in 2007, in December said it secured $18.5 million in a third round of venture capital financing, led by Lightspeed Venture Partners and Accel Partners, along with ongoing participation from angel investors.

Angel investors provide funds in the earliest stages of a firm’s development. Count friends and family in that group, as well as high-net-worth individuals willing to take a chance on the next big thing. Once a company gets it feet wet, the next phase of early-stage investing is venture capital. Some angel investors will continue to go along for the ride, providing additional funding alongside the VCs.

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