Thread, a new spin on the retail experience that combines artificial intelligence with stylists, is set to close its equity crowdfunding campaign on Crowdcube later this evening with more than £2 million in funding thanks to over 3250 investors. The funding round was launched last month and quickly secured its initial £500,000 target.
As previously reported, Thread operates by asking customers, currently just for men, a few questions about their style, size, budget, including which brands they like and their preferred style. Customers are then matched with a personal stylist who works with in conjunction with AI to recommend clothes for them. Each user is said to receive a completely unique set of ideas, tailored to their appearance and preferences. Users may also browse clothing selections in a more traditional retail experience. Thread “learns” every time a user interacts with products.
Thread noted its vision is to become one of the largest retailers in the world by simplifying the process of dressing well for hundreds of millions of people globally. The company is initially focusing on men, and more than 1 million men in the UK have joined Thread. Gross sales have grown from £2.4 million in 2015 to over £14 million generated in the year ending September 18, resulting in £7.69m million revenue. It was also reported that over 500 leading fashion brands have joined the platform, including Burberry, Paul Smith, Hugo Boss, Ted Baker, Levis, River Island, and M&S. It was then revealed:
“Thread recently announced $22m in funding, led by H&M Group, Balderton Capital and Beringea. They want to give their customers a chance to share in their success so have reserved part of the round for the crowd, giving you the opportunity to invest alongside the VCs on exactly the same financial terms.”
Speaking about the crowdfunding round’s success, CEO and Co-Founder, Kieran O’Neill, stated:
“We couldn’t have achieved either of these things without you, which is why we want to make sure that you have the opportunity to be a part of our success. Thread would be nothing without the incredible men who’ve embraced a revolutionary new way to shop for clothes. By offering you the chance to invest on the same terms as industry experts like H&M and Balderton Capital, we want to give you a stake in our future.”
Funds from the Crowdcube round will be used to continue the expansion of Thread’s clothing lines.
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