NEW YORK — Rent the Runway, the online site for dress and accessories rentals, has raised $20 million in its third round of financing.
The latest round was led by Advance Publications Inc., the parent company of Condé Nast and Fairchild Fashion Media, parent of WWD. Other investors include Bain Capital Ventures, Highland Capital Partners and Kleiner Perkins Caufield & Byers, each of whom has made prior investments in the company. Prior to the latest round of financing, the online rental destination site raised more than $31 million in venture capital funding.
The latest round comes at a time when there’s been some pullback on venture capital investing, particularly in the e-commerce space since it is sometimes considered an older established model when compared with the sexier application developments that are getting attention to capture mobile activity on smartphones and tablets.
Scott Friend, managing director at Bain Capital Ventures, the venture capital arm of Bain Capital, said, “When you look across a lot of the potential investments out there, Rent the Runway is the exception. It has a unique value proposition. Some that are good for consumers are not good for vendors and some that are good for vendors are not good for consumers. Rent the Runway markets to aspirational consumers who would not otherwise learn about some of the new brands [available at Rent the Runway].”
Robert Sauerberg, president of Condé Nast, said, “Our investment in Rent the Runway underscores our commitment to working with innovative, adaptive companies that serve the growing needs and desires of consumers. We are particularly focused on companies run by smart people with carefully managed businesses and talented teams.”
Jennifer Hyman, chief executive officer and cofounder of Rent the Runway, said the site, which has three million members between the ages of 15 to 35, rents for special occasions and often “discovers” brands that they’ve never heard of while on the site. Many try the brand, like it and then become shoppers of that brand, Hyman added. That’s the value proposition for its vendor partners.
Sauerberg is joining the Rent the Runway’s board, and Hyman said at some point they will “brainstorm a marketing program” that will allow the site access to Condé Nast readers and vice versa.
When the company did its $15 million venture capital round with Kleiner Perkins in May 2011, there were just 140 designer brands available on the site. Now that number is more than 200.
The vertically integrated operations for the firm, which launched in 2009, are in Secaucus, N.J., where the dry cleaning, tailoring, jewelry repair and pick, pack and ship is done.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)