Investors Pumping More Money Into Retail Start-ups

Fashion’s funding lifeline is still securely connected to the start-up crowd. The private sector is hot with innovation and disruptors that offer consumers new products and a fresh take on things.  And venture capital firms and other investors are pumping hundreds of millions of dollars into names such as Edie Parker, b8ta, Cuyana, ThirdLove, Rebag, Rockets of Awesome and Bandier. In a research note, Wells Fargo analyst Ike Boruchow looked at data from Pitchbook and found 38 digitally native retail companies that collectively raised roughly $1.2 billion in the first quarter, making them a bigger threat to traditional retailers. “Though revenue figures for many of these companies are unknown, the average [estimated value]/sales multiple for companies with known revenue figures was [five times] in Q1,” Boruchow said. Goat, Casper, Glossier and Rent the Runway, all had more than $100 million in investments in the last two months. Luxury online fashion reseller Farfetch paid $250 million for sneaker reseller Stadium Goods in January. Four companies — Glossier, FabFitFun, Rent the Runway and Casper — raised enough money during the first quarter to push them into an elite group of “unicorns,” or companies with an implied valuation of at least $1 billion. “There’s been a

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