2014 year marks the fifth year marker in the Fashion Tech phenomenon with over $2.8 Billion invested in Fashion Tech last year. Fashion is a $1 Trillion industry, making it an even larger industry than tech and investors have taken notice.
At the inaugural Fashion Tech Forum this past Wednesday, David Freschman, founder of the fashion investment news site, FashInvest and Managing Principal at Innovation Capital, made some bright predictions for the future of fashion tech, as well as validated the positive impact tech is bearing on the industry.
“”People are investing in fashion tech more than ever, [they see it] as an entirely new investment sector,” Freschman said. “Just from 2013, you can see an upward trend. More and more dollars are being poured in. When there’s disruption, there’s opportunity. When there’s opportunity, there’s investors and when there’s investors, there’s a growth of success.”
While there are plenty of established power brands like Nasty Gal, Warby Parker, Gilt, Net-a-Porter and Rent the Runway framing the space from the categories above, the market will get more competitive. As competition intensifies, Freschman expects to see a significant increase in exits in coming years. “Big retailers need innovation, so rather than watching a company go public with an IPO, they will just acquire whole companies.”
Freschman notes that these exits will refresh investment into new startups. What type? He eludes to the notion that we’re not far from seeing the radical technologies beyond today’s wearable. Here at Refashion, we’re betting it has lots to do with smart materials, OLEDs and embeddables as discussed in our podcast with Andy Goodman on the future of fashion.