Digital Brands Group, the Los Angeles-based brand house for digital-first, direct-to-consumer lifestyle brands, is undertaking its first ever international fundraising exercise with a campaign on UK-based crowdfunding platform Crowdcube.
The fundraising is aimed to secure additional funds to accelerate the group’s continued expansion including plans to establish its flagship brand, DSTLD, in the UK market. At the time of writing the company had raised more than £1.3m against a target of £307,000 with 26 days of the campaign still to run.
DSTLD (a vowel-less version of “distilled”) is a fast growing LA denim brand with a celebrity following including Alessandra Ambrosio, Sofia Richie and Cara Delevingne. Launched in 2012 it offers premium denim and luxe essentials and has so far achieved sales in excess of $17m thanks to its its growing online sales and pop-up showrooms.
In addition to DSTLD, the Group is adding its second brand to the portfolio with the launch of ACE Studios, a luxury performance suiting and sportswear brand, in December. ACE will leverage Digital Brands Group’s CEO Hil Davis’s extensive experience which includes founding J. Hilburn, a bespoke tailored clothing brand, which he built to a $55m company in just six years.
Digital Brands Group says its purpose is to “develop and acquire like-minded and fast growing direct-to-consumer brands into one portfolio“. The brands leverage shared resources that support and market their products, while maintaining and creating their own unique customer values and identities. This model helps to drive down fixed costs, fuel innovation, support the customer experience and ultimately drive down prices for consumers.
Davis said of the Crowdcube exercise: “Our first international round of fundraising marks a very exciting milestone for Digital Brands Group as we continue to deliver our ambitious growth plans. We have seen first hand how powerful it can be to raise funds from those who wear, buy, and love our products. We are delighted to be launching funding in the UK as we look to expand our brands and product into new markets.
“The fundraising not only supports our long term brand awareness strategy here in the UK, with DSTLD due to land in the UK in 2019. It also provides the UK public and investors with an exciting opportunity to be part of our growth story from the ground up.”
“The world of retail is moving more and more towards e-commerce led and direct-to-consumer models and we already have two very exciting brands in our portfolio. DSTLD is increasingly establishing itself as a disruptive, premium denim brand in the US market with widespread industry and celebrity endorsement,” Davis added.
Digital Brands Group has previously completed successful fundraising activities in the US with its most recent fundraising round exceeding $1m of investment secured in just five days. This marked the company’s third equity crowdfunding round with SeedInvest with more than $4.5m previously raised through the fund-raising platform.