There’s no slowing down in the fashion tech industry—even though the investments took a plunge in recent quarters. In Q1 2024, funding for fashion tech startups dropped by 68% to $422 million raised across 44 rounds in comparison with $1.32 billion across 102 rounds in Q1 2023.
However, this sharp dip is a reflection of the macroeconomic context, rather than deeper problems lying within the fashion tech industry. The sector remains strong, attracting significant funding for fashion startups.
If you want your fashion startup to get funded, nail your investor outreach. Even with a game-changing product, you need to know your investors. Figure out who’s ready for your pitch and who’s not.
That’s why we’ve prepared a guide with verified fashion tech investors. It includes the most active VC funds and angel investors, fashion accelerators and incubators, recent exits, as well as key insights into the sector’s ecosystem.
- Software & Apps
- CleanTech & Sustainability
- +15
- Pre-Seed
- Seed
- +4
- Sports & Fitness
- Pharma
- +13
- Pre-Seed
- Seed
- +2
- $500K-$1M
- $1M-$3M
- AI & Deep Tech
- Advertising & Marketing
- +17
- Seed
- Series A
- +4
- AI & Deep Tech
- Advertising & Marketing
- +15
- Seed
- Series A
- +3
- Agritech & Farming
- Biotech
- +19
- Pre-Seed
- Seed
- +2
- $100K-$500K
- $500K-$1M
- Advertising & Marketing
- Consumer Goods & Electronics
- +10
- Pre-Seed
- Seed
- +1
- Hardware. Robotics & IoT
- Real Estate & Proptech
- +5
- Seed
- Series A
- +4
- Security & Privacy
- Software & Apps
- +2
- Pre-Seed
- Series A
- +5
- Convertible Note
- Seed
- +3
- Seed
- Series A
- +1
- Pre-Seed
- Seed
- +1
- Convertible Note
- Seed
- +2
- Software & Apps
- Social media
- +1
- Angel Round
- Private Equity Round
- +4
- Angel Round
- Funding Round
- +3
- Seed
- Series B
- +2
- Series A
- Series B
- +2
- Series A
- Venture Round
- E-commerce & Retail
- Fashion & Apparel
- +1
- Seed
- Social media
- Transportation & Mobility
- +3
- Pre-Seed
- Seed
- AI & Deep Tech
- Advertising & Marketing
- +20
- Pre-Seed
- Seed
- +3
- $0-$100K
- $100K-$500K
- +3
- Hardware. Robotics & IoT
- Communications & Messaging
- +7
- Seed
- Series A
- +1
- Convertible Note
- Private Equity Round
- +3
- AI & Deep Tech
- Advertising & Marketing
- +30
- Pre-Seed
- Seed
- +4
- $500K-$1M
- $1M-$3M
Most active fashion tech VC funds
Fashion tech venture capital firms leading the pack include IBB Ventures, a Berlin-based fund which targets early-stage tech startups and has already completed 229 investments with 37 exits.
Tesi is a state-owned venture capital and private equity firm that supports Finnish startups and growth companies.
Bullish, headquartered in New York, the US, has made over 69 VC injections.
Innogest Capital is an Italian VC fund investing in early to growth-stage companies from fashion technology to healthcare.
Fashion angel investors
If you want personalized, flexible support and early-stage capital, seek angel investors who offer tailored mentorship and industry expertise. Notable fashion angel investors include Karlie Kloss, an American fashion model with 14 investments in her portfolio, such as W Magazine, mmERCH, and Reformation.
Jesse Draper, a fourth-generation VC and the founding partner of a venture capital firm called Halogen Ventures that backs early-stage female entrepreneurs.
Christopher Burch, the co-founder of the luxury brand Tory Burch, and founder and CEO of Burch Creative Capital is active too, investing across multiple verticals, including fashion tech.
Fashion tech accelerators
If you wish to go further than securing capital, get mainstream industry-specific support, mentorship and access to a global network of partners and customers, then consider applying to these fashion tech incubator and accelerator programs.
Fashion For Good Accelerator is a sustainability-driven 9-month program providing mentoring and funding access as well as hands-on collaboration with industry leaders to scale innovations in sustainable production and make fashion’s supply chain more transparent and circular.
Fashion Technology Accelerator is globally leading in fashion tech accelerators, supporting fashion startups to boost their value through sales volume and branding. The 24-week program runs in Milan, Italy.
Toronto Fashion Incubator supports emerging fashion designers and fashion entrepreneurs through mentoring and building innovative fashion businesses. For more on the Toronto VC ecosystem, check out our dedicated guide.
Recent exits in fashion tech
The fashion tech sector has recently seen a steady flow of acquisitions and high-profile IPOs, signaling strong ongoing investor interest. Notable 2024 deals include Bonsai’s acquisition of Mybestbrands for $120 million and Secret Sales’ purchase of Dress for Less for $85 million. Additionally, FULLBEAUTY Brands bought Dia for $50 million.
In IPOs, Perfect Moment, an activewear brand, went public on NASDAQ in 2024, raising $150 million with a $1.2 billion valuation. In late 2023, Yutori, an AI-driven fashion tech company, raised $200 million on the Tokyo Stock Exchange, and Mish India, a fashion e-commerce platform, secured $100 million on the Bombay Stock Exchange.
What drives the fashion tech VC ecosystem
AI drives fashion tech innovation forward. Integration of AI helps tackle inefficiencies in e-commerce search and supply chain challenges. For instance, Daydream’s AI-powered search engine enhances user experience by making it easier for consumers to find exactly what they need.
Similarly, Zyod’s platform helps factories maximize capacity and streamline production, revolutionizing traditional manufacturing processes. These examples show how AI sets a new standard for the industry, while the $50 million and $18 million raised demonstrate strong investor confidence in the sector.
Expansion into emerging markets is on the rise. Regions like India, Africa, Asia, and the Caribbean appeal to fashion tech investors with their vast, underserved markets and rising consumer spending power.
The strong backing for Amazon’s Bazaar in India and The Folklore, which helps local brands scale globally, shows investors are eager to capitalize on the growing middle class and demand for affordable fashion.
Fashion tech investors bet on sustainability. Consumer demand for eco-friendly practices rises, making startups use sustainable materials and transparent supply chains. Fashion tech investors open their wallets wide to support sustainable fashion tech companies, as seen with Zyod, which scored an $18 million investment to expand its tech-driven fashion manufacturing globally.
Market fragmentation attracts fashion tech VC funding. Investors are increasingly interested in startups like Daydream that can solve the challenges posed by e-commerce fragmentation. The focus on AI and personalized search capabilities is attracting substantial funding, as evidenced by Daydream’s $50 million seed round.
Venture capitalists see the potential in companies that can streamline the e-commerce experience, making them more likely to invest in similar innovative solutions.
Stitch the future of your startup
The fashion tech industry shows great potential for riding out future challenges, catching the eye of investors eager to back promising entrants. However, with investor interest comes intense competition. To secure funding for your fashion startup and establish a strong foothold in the market, be ready to demonstrate:
A strong founder/market fit;
A pitch deck that communicates your product’s value and appeals to investors;
A business plan with a clear market analysis, a strong competitive moat, a customer acquisition strategy that drives growth, and realistic financial projections;
An expert team with experience in the space.
If you need help, reach out to our Waveup team for guidance and follow the lead of founders we’ve helped raise over $3 billion in VC funds.