Outdoor Voices, a New York City-based activewear brand, has raised a $9 million convertible note.
The investment came from Drexler Ventures, the fund of former J.Crew CEO, Mickey Drexler, who has also been appointed as chairman of OV’s board of directors as part of the investment.
“I have been impressed with Tyler and Outdoor Voices since day one,” Drexler said in a Business of Fashion report. “The product and the larger community she’s built around Outdoor Voices is incredible.”
Tyler Haney launched Outdoor Voices in 2014 and has has previously worked with Drexler, selling at J. Crew as part of its “Discover” program.
Outdoor Voices is a distinct brand in the activewear market, favoring a more muted color palette as opposed to the bright neon hues typically used. This has earned them a more fashionable reputation that has led to partnerships with French label A.P.C. (founder Jean Touitou is an investor in Outdoor Voices) and Leandra Medine.
“Mickey is an expert at building teams and a fantastic leader,” Haney told Business of Fashion. “Having him on Team OV gives us an incredible resource of knowledge and experience when it comes to building the next great activewear brand.”
The activewear brand has found great success in its market. In 2016, Outdoor Voices received $13 million led by investors General Catalyst Partners, who also invest in Snapchat and AirBnB, and Foreunner Ventures. This funding has allowed the brand to venture into the retail space, opening five stores within the past year in locations including Manhattan, Aspen and Los Angeles.
The new investment will enable the brand to open two new retail spaces this year and even more in 2018, putting them on track to quadruple the company’s growth.
It will also give the brand the opportunity to invest more in fabric innovation and product development, and improving its digital presence. Outdoor Voices also has plans to launch a virtual shop for creating customer outfits, an addition fit for the brand since 70 percent of its sales are done online.