The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The e-commerce investor, formerly known as Clearbanc, announced on July 8 its new round of funding led by investor SoftBank under its Vision Fund 2.
Clearco gives capital to companies for growth without taking an equity stake, and in return, brand partners pay Clearco a share of their revenue. Since its creation in 2015, the firm has funded over 5,500 companies, totalling more than $2.4 billion in investment volume.
“Softbank’s investment during a moment where we are accelerating at breakneck speed and leading a founder’s revolution is both humbling and exciting as we continue to work towards removing archaic barriers and offer an alternative and accessible solution for founders all around the world, cofounder and president Michele Romanow said in a statement.
Last month, Clearco announced a $50 million financing partnership with Creative Artists Agency (CAA), one of the biggest talent agencies in the US, to fund an entity that will pair up brands with potential celebrity partners.
With an uncertain economic outlook, digital brands are forced to make tough calls on whether to cut back on marketing at the expense of growth or continue to spend and accept lower profits.
With the direct-to-consumer funding heyday now over, DTC brands need to turn a profit. Unlike their revenue-obsessed counterparts, DTC pioneers Marine Layer, Meundies and Trinny London offer a blueprint for achieving both top- and bottom-line growth.
Mounting digital marketing costs and e-commerce readjustments have put the viability of pure direct-to-consumer business models into question. The State of Fashion 2023 reveals that most brands will need to diversify their channel mix beyond DTC to generate growth.
Start-ups under pressure to operate in the black have logistics and marketing expenses in their sights.