DSTLD Becomes Digital Brands Group, Looks to Raise $10 Million in Reg A+ Crowdfunding Offer

DSTLD, the direct to consumer fashion label the provides high quality clothing at lower cost, is now part of the Digital Brands Group. The company reorganization was paired with a new crowdfunding round on posted on SeedInvest.

According to the DSTLD / Digital Brands Group offering circular:

“Our company was first founded in 2012 (as Denim.LA, LLC) in order to sell premium essentials online, which include jeans, shorts, tops, accessories, and gift cards. Beginning in 2014, we operated under the name “DSTLD”. Since then, following the success of our online fundraising campaigns and customer demand, we have expanded our goal to create a portfolio of digital first brands across product categories, geographies and consumer demographics. We believe that as we build and buy these brands, we will receive cost leverage in marketing and operating through efficiencies and shared services. Under this new vision, the company will operate under the name Digital Brands Group.”

Digital Brands expects to acquire new brands every year or two by either issuing stock or obtaining financing to add to its portfolio. Digital Brands is looking for complimentary brands generating $10 to $30 million in top line revenue.

The first new brand will be Ace Studios which seeks to “design and offer luxury men’s suiting with superior performance, superb fits, and excellent quality at an exceptional value.”

DSTLD’s revenue or “gross transaction revenue” (GTV) stood at $5,884,740.71 in 2017 which was almost an 80% increase versus year prior. In 2016, net revenues were $2,500,306 which grew to $3,849,646 in 2017.  The net loss for 2016 stood at $2,260,910 which grew to a loss of $3,287,809, the next year.

As for the crowdfunding round on SeedInvest, this is not the first time DSTLD has raised capital on the platform.

For this Series A – 3 campaign, Digital Brands Group is looking to raise a maximum amount of $10 million using the Reg A+ crowdfunding exemption. The company has a pre-money valuation of $35 million. Investors will receive preferred equity at $0.53 / share. There is a minimum investment of $1500.

The crowdfunding offer only recently launched and has started quite strong with over $1 million already raised.

Previously, DSTLD raised over $4.5 Million via two successful equity crowdfunding campaigns.

It is interesting to note that the company is planning on using either Kickstarter or Indiegogo to help raise brand awareness at some point in the future.

If you are interested in learning more, the offering page is available here.


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