LA-based direct-to-consumer premium denim and essentials brand DSTLD will open its Series A capital raise with the launch of a live equity crowdfunding campaign. This new plan will make it possible for anyone to buy shares in the company. The brand plans for the campaign to go live in the coming months.
As the first-ever fashion company to seek equity crowdfunding from its community of brand loyalists, the brand is hoping to raise up to $6 million and plans to use funds to expand product selection and increase paid marketing efforts. DSTLD also plans on developing an investor portal on its website where members can provide input on prototypes, suggest new product development, gain access to business analytics, take part in live webinars with company executives, and receive exclusive perks.
“We’re excited to be the first-ever fashion company to take this approach, we have a passionate customer base that shares our vision, a line of high quality essentials that are built to last in order to reduce the impact fashion is having on our world,” said Mark Lynn, co-founder of DSTLD. “Since our customers are our biggest assets, it made sense to market our cause to the 98 percent, over the 2 percent, and to have our community become partners in our growth.”
DSTLD has previously raised $5 million through traditional avenues including accredited investors and venture capitalists. In October, the brand conducted an initial testing campaign to gauge its community’s interest in investing, and the reaction was strong. DSTLD secured $12.1 million in indications of interest from more than 2,100 individuals. The brand has since relaunched its testing campaign and will continue to accept indications of interest in the months leading up to their live campaign.
“Retail is undergoing an historic transformation,” added Corey Epstein, co-founder of DSTLD. “Fashion is no longer about labels; it’s about being effortless and stylish. We’re focused on providing a wardrobe for people who define themselves by what they create not the labels they wear.”
The public round is made possible by the recent amendment to the Jumpstart Our Business Startups (JOBS) Act, which permits anyone to invest in a private company, an opportunity previously only available to the wealthiest 2 percent of Americans.
To learn more about DSTLD and investing, please visit their campaign page on its SeedInvest page.