This newsletter was published on July 25, 2019
At Equifund, we believe it’s important for everyone to have access to the latest and trending news stories. This is why we’ll only bring you the most important insights and facts — in quick, concise bits — to keep you informed on industries impacting your everyday life, from business to finance and more.
Here’s what’s important to know this week…
Millions of investment dollars are flowing into fashion — marking an upward trend
While fashion has always dominated magazine spreads, it hasn’t always received major venture capital dollars.
According to Brian Thorne, a partner at Silas Capital, some investors are scared to take fashion risks because “seasonal product may not hit and you have to figure out how to sell off the inventory.”
But all that’s changing in the U.S. Major venture capital firms and celebrities are betting on the success of fashion by investing in companies such as, Rent the Runway, a subscription fashion service, and StockX, a marketplace for buying and selling limited edition sneakers. Both companies have been praised for revolutionizing the industry and are now worth over $1 billion.
Last year, a total of $927 million was invested in fashion, and in the first half of 2019, $720 million has already been invested — marking an upward trend.
Beyond Meat is climbing the ranks of innovative companies and everyday people are cashing in on their success
Since the maker of meat alternatives went public on the NASDAQ Stock Exchange, the company’s valuation grew from about $1.5 billion ($25 per share) to over $10 billion ($219.34 per share as of today).
Early investors who were finally able to sell their shares and earn profits not only include major brands and celebrities, but everyday people who were given the opportunity to invest through equity crowdfunding. Unlike traditional crowdfunding, equity crowdfunding allows anyone over the age of 18 to invest in promising companies and receive equity in return — irrespective of their income or net worth.
In an exclusive interview, we chatted with four-time NBA champion and early investor of Beyond Meat, John Salley, on the power of equity crowdfunding:
“…equity crowdfunding is the way to go. Take a look at Beyond Meat. They started out raising money this way and now they’ve made history with the biggest IPO pop in more than a decade.”
So why are these stories important? They highlight the fact that investors are expanding their investment portfolio — outside enterprise security and analytics — and that they’re choosing to invest through equity crowdfunding platforms, such as Equifund.
Looking for more insights? Join our investor community now for free!