Update: Digital Brands Group Quickly Exceeds $1 Million in Funding Less Than a Week on SeedInvest

Digital Brands Group, the parent company to popular digital denim brand DSTLD, announced earlier this week it secured more than $1 million in investments after only five days into its live Regulation A+ campaign on crowdfunding platform SeedInvest. As previously reported, DSTLD, which is a direct to consumer fashion label the provides high-quality clothing at lower cost, is now part of the Digital Brands Group. 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.”

DSTLD claims that in 2016 it became the first-ever fashion brand to raise money through Reg A+ financing, a section under the JOBS Act voted in by the SEC that allows anyone to invest in a private company, not just the wealthiest 2%. The company recently surpassed $15.8 million in revenue from over 75,000 customers.

DBG describes itself as a curated collection of digital-first lifestyle brands that brings together like-minded direct-to-consumer names into one portfolio that shares operational, infrastructure, and data resources as a means to drive down redundant fixed costs that are expensive to maintain and grow for direct brands. The company planning to launch a luxury performance suiting and sportswear brand, ACE Studios, in the fourth quarter of 2018.

Through the SeedInvest round, DBG 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 and investors will receive preferred equity at $0.53 / share. There is a minimum investment of $1500.

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