CreateMe begins fundraising conversations
CreateMe, an on-demand apparel manufacturer and customization platform, is in early-stage fundraising discussions for a seed raise ahead of a planned Series A, says co-CEO Campbell Myers.
Why it's the BFD: Since ushering in the Industrial Revolution, clothing production has seen little innovation, but CreateMe is trying to change that, Myers says.
By the numbers: "We are a mature business as far as a Series A," Myers says.
- CreateMe has north of $20 million in revenue and a gross margin of between 40% and 50%.
- It projects it will have a compound annual growth rate (CAGR) between 40% and 50% from 2021 to 2024, though that could increase to 65% between 2021 and 2027.
- To date, CreateMe has been financed by what is essentially a family office or fund that handles investments for him and his sisters, Myers says.
Details: After receiving inbound investor interest, CreateMe began discussions to raise a Simple Agreement for Future Equity (SAFE) instrument of $15 million to $20 million over the next two months, Myers tells Axios.
- That money would then be rolled into a Series A round, which could be in the ballpark of $50 million and potentially close in Q1 2023, he says.
- Visual commerce platform Threekit, which raised a $35 million Series B round last November on a post-money valuation of about $235 million, is a logical comparable for CreateMe, Myers says.
- Potential investors include strategics, venture capital firms and individual investors or family offices.
- CreateMe is just starting to assemble a short-form deck and has not yet built out a data room.
How it works: One of CreateMe's key product offerings is on-demand and customized product creation from small batch to large-scale orders.
- It built its first R&D factory and first automation systems where it will construct apparel and automate embellishment of apparel and accessories, which come online in October.
- In March it debuted at SXSW what it calls an experiential retail and event solution via which shoppers can customize clothing and accessories with embellishment or embroidery.
- It also has a digital platform for product creation.
Yes, and: The company's technology automates the construction of garments using a laser printer with a liquid bonded polymer instead of thread, Myers explains.
- "We can get down to the micron level to establish exactly the pattern that is wanted for a particular stitch type," he says.
Of note: It counts Ralph Lauren as one of its most important customers, as well as Levi's, Adidas, Luxottica's online business, Fender and Franklin Sports, among others.
The bottom line: Apparel manufacturing is overdue for modernization.