Breaking news: TSM Capital invests in Matthew Williamson

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WWD’s lead story today reveals that TSM Capital, an offshoot of Marvin Traub Associates, has invested in  London-based Matthew Williamson, having raised funds from a silent investor. The deal gives TSM a 22% stake of Williamson’s business. Last year, Williamson took on investment from Baugur Group, where Aslaug Magnusdottir, now one of the key individuals behind TSM, was responsible for venture investments, like the one in Williamson.

The investments will focus on early stage businesses in fashion apparel and accessories. Traub described to WWD the market gap that TSM is aiming to fill:

“Over time, we frequently saw many great companies whom we thought were talented, and who could use funding. But if you’re trying to raise a range of $5 million to $25 million, it’s much more diffi cult than if you need to raise $50 million or $100 million.”

Despite some market uncertainty, it seems there is still interest in fashion investing, even if it is at the riskier end of the investment spectrum.

Photoclip courtesy of nymag.com

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2 comments

  1. As I’m sure you (Mr. Amed) know, but for the sake of fellow readers I’ll make the following statement: In venture investing in general the early stage deals are “sweeter” than later stage deals due in part to the following: 1. a firm’s initial financiers usually receive more favorable terms than subsequent investors who are late to the party 2. early stage investors anticipate additional funding at later stages – they usually retain an option, specified or implied, to lead future funding rounds, so if the startup really gains traction, then they can increase their percentage of ownership and really accelerate the value of their stake 3. a company’s structural, operational, and/or financial reporting may need to be modified to allow financing and enable expansion – this is far easier to perform at the early stage – corpoarate 4. early stage deals are cheaper and less complicated, early stage companies usually need less money and receive money in increments while later stage financings involve syndicates of financiers, more legal work, much more political sensitivity, and much more immediate capital-late stage companies usually in the midst of restructuring, refinancing, or immediate expansion need all of their capital and credit lines intact immediately upon signing a funding deal

  2. Dear Gerald, Thank you very much for your insights – I agree with all you say about the benefits of early stage financing. I believe that those investors who are able to spot talent early could do very well indeed, for many of the reasons you outline That said, there is more inherent risk (unproven concept, no proof of ability to scale up, etc) involved with earlier-stage investing too (and this is why the return for taking this risk is higher).