Total amount raised
$626.1 Millions
Latest funding date
Location
Rent the Runway has successfully raised significant capital through multiple funding rounds, including a Series G round. The platform offers a unique service that allows users to rent designer clothing and accessories.
Keep reading to explore the intricacies of Rent the Runway's fundraising journey and the investors backing this innovative platform.
What Is Rent the Runway?
Rent the Runway, founded in 2009 by Jennifer Fleiss and Jennifer Hyman, is headquartered in New York, New York. The company revolutionizes fashion by offering a subscription service for renting designer clothing and accessories. With a workforce of around 1,200 employees, Rent the Runway aims to make high-end fashion accessible to all.
How Much Funding Has Rent the Runway Raised?
- Series E
- Amount Raised: $60M
- Date: December 2016
- Lead Investors: Fidelity
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the subscription service and enhance technology infrastructure.
- Secondary Market
- Date: April 2017
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
- Venture Round
- Amount Raised: $20M
- Date: March 2018
- Lead Investors: Blue Pool Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and expand market reach.
- Debt Financing
- Amount Raised: $200M
- Date: August 2018
- Lead Investors: Temasek Holdings
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support business growth and operational expenses.
- Secondary Market
- Date: September 2018
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
- Series F
- Amount Raised: $125M
- Date: March 2019
- Lead Investors: Bain Capital Ventures, Franklin Templeton
- Valuation at Round: $1 billion
- Motivation Behind the Round: To scale the subscription business and expand product offerings.
- Secondary Market
- Date: April 2019
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
- Venture Round
- Amount Raised: $5M
- Date: June 2020
- Lead Investors: SuRo Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support business continuity during the COVID-19 pandemic.
- Series G
- Amount Raised: $100M
- Date: October 2020
- Lead Investors: Ares Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen financial stability and support long-term growth.
- Debt Financing
- Date: October 2020
- Lead Investors: Ares Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To manage operational costs and ensure liquidity.
Total Amount Raised: $510M. Current Valuation: $1 billion.
Key Investors
- Ares Management
- Details: Ares Management is a global alternative investment manager with a focus on credit, private equity, and real estate. The firm manages assets for institutional and retail investors worldwide.
- Investment Focus Areas: Credit, private equity, real estate
- Notable Investments: Neiman Marcus, Guitar Center, McGraw-Hill Education
- SuRo Capital
- Details: SuRo Capital is a publicly traded venture capital firm that invests in high-growth, venture-backed private companies. The firm aims to provide capital to companies at various stages of development.
- Investment Focus Areas: Technology, education, financial services
- Notable Investments: Coursera, Palantir Technologies, Spotify
- Bain Capital Ventures
- Details: Bain Capital Ventures is the venture capital division of Bain Capital, focusing on early to growth-stage investments. The firm supports companies in various sectors, providing both capital and strategic guidance.
- Investment Focus Areas: Software, fintech, healthcare, commerce
- Notable Investments: LinkedIn, DocuSign, SurveyMonkey
- Franklin Templeton
- Details: Franklin Templeton is a global investment management organization that offers a wide range of investment solutions. The firm manages assets for individual and institutional investors.
- Investment Focus Areas: Equities, fixed income, alternatives, multi-asset solutions
- Notable Investments: Various investments across technology, healthcare, and financial services sectors
- Temasek Holdings
- Details: Temasek Holdings is a Singaporean holding company owned by the Government of Singapore. The firm invests in a diverse range of industries globally.
- Investment Focus Areas: Financial services, telecommunications, media, technology
- Notable Investments: Alibaba Group, Singapore Airlines, DBS Bank
What's Next for Rent the Runway?
Rent the Runway is poised to capitalize on the growing trend of shared, dynamic ownership in fashion. With plans to scale its subscription service and expand into home decor, the company is well-positioned to tap into new markets and broaden its customer base. The recent $125 million funding round, led by Franklin Templeton and Bain Capital Ventures, underscores the significant opportunities ahead.
Future fundraising efforts will likely focus on supporting these ambitious growth plans, including opening additional fulfillment facilities and physical stores. However, challenges such as competition from other fashion services and managing logistics costs could pose hurdles. Maintaining customer satisfaction will be crucial as the company navigates this expansion phase.
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