In keeping with the fashion theme from yesterday (men’s rompers, ughh), the fashion industry appears to be embracing crowdfunding for a number of reasons including:
- Venture Capitalists don’t fund fashion;
- most Venture Capitalists are men and don’t get fashion, leaving women in the (virtual) cold;
- it de-risks product innovation by pre-sales;
- it allows first timers to take a chance;
- it facilitates more experimental product launches; and
- it helps fuel growth for medium sized firms that can’t find reasonable financing elsewhere.