Scoop: Russell Wilson and Ciara seek $20-50M for Series A
The House of LR&C, a Seattle-based fashion startup founded by NFL quarterback Russell Wilson and singer Ciara, plans to raise between $20 million and $50 million this spring for its series A funding.
- The range of that fundraising total gives it a rough valuation of between three and five times the company's revenue, its CEO Christine Day tells Axios.
- The company also just closed an oversubscribed convertible note, she said.
Why it matters: The Series A funding range offers the first peek at specific valuation figures for the company, which the husband and wife combo plan to build into a $1 billion business.
- Day, Lululemon's former CEO, said LR&C will be certified as a B Corporation. It currently donates 3 percent of its net revenue to charity.
Details: The convertible note was led by Harlem Capital, which invests only in minority- and women-founded startups, and includes Fanatics investor Ames Watson Capital, Lightspeed Venture Partners, Darco Capital, and More than Capital (MTC).
By the numbers: The House of LR&C grew revenue by roughly 70% over the past year from seven figures to eight figures, according to Day.
- The startup has both strong digital sales and a strong wholesale business. Wholesale partners such as Nordstrom are profitable channels for The House of LR&C and provide valuable marketing or brand exposure to a new set of customers, Day said.
Of note: Whereas retail banners used to open up to 2,000 stores in the U.S., they can now get the job done with 200 locations in the top markets, Day added.
What's next: By spring, The House of LR&C will have audited results for 2021 and as orders roll in for fall, have a good idea of what its growth will look like for 2022.
What they're saying: "Ultimately, this is a rock star management team," said Henri Pierre-Jacques, managing partner at Harlem, on why his firm invested.
The bottom line: Who needs the NFL playoffs when you're building your own sustainable apparel empire?
Richard authors the Axios Pro Retail Deals newsletter. Sign up here.