Getting Funded: What do Investors Look for in a Fashion Brand?

These days, investors are looking for both a sure thing and a unicorn. So, what does that actually look like for an independent fashion brand? This article outlines what to consider before getting funded—no strings attached.

Check Yourself (and Your Track Record)

As an independent fashion business, do you know what your track record is? And, not just the track record of your existing business—your track record as an entrepreneur, too. 

Before you get started, know what you’re bringing to the table. Investors are looking to take on investment that comes from entrepreneurs who have had some relative success within their careers. Your entrepreneurial history and the results of your existing business models combined can paint the right picture to your investors. 

Unicorn Status

What is it about your business that could be considered the next unicorn? Do you have access to a network of social media influencers? Does someone in your family own a factory? Start to think about the key things about you and your business model that stand out and make you unique. That’s what investors want to know!

When we think about companies like Warby Parker or Bonobos, they started small, and they were definitely at the forefront of their times. Leveraging technology helped them scale—so what is that element for your business? Here’s another great example. For a company like Revolve, its unique value is in the social media celebrity-curated brands that are being produced. 

Know What You Want

Lastly, do you know what you want out of an investor? This question is just as important as the flipside. Is another million dollar investment going to take you that far? For a successful experience with an outside investor, you must first have a strong understanding of your needs, how you plan to use your resources, and what a prospective ROI will look like. 

As tempting as it is to model your business after Silicon Valley, just remember: As a fashion brand, you’re not a technology company. While technology is part of the picture, you’re not just investing in systems but in actual product and inventory. That makes it even more important and valuable to minimize risk for your investor, for your own business, and to ultimately maximize those returns. 

So you got funded—what’s next? Our article “Three Ways to Strategically Reinvest in Your Business” will show you the way.

At Scaling Retail, we specialize in building custom decks and identifying unique value propositions to get your brand the funding you need to scale and grow. Send us an email to hello@scalingretail.com to start the conversation. 

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