After watching the revenues of small startups dramatically increase for the better part of the last decade, more of the world’s leading venture capitalists are appreciating the rapidly growing menswear industry.
They’re embracing it, fueling it, and providing a path for fashion startups by investing millions of dollars.
Montreal-based design firm Frank & Oak recently received $15 million to finance its expansion into the brick-and-mortar world. According to a recent entry in the Wall Street Journal blog, Frank & Oak plans to use the money to increase their workforce by 25% over the next two years and open a number of guide shops to sell their goods.
Frank & Oak is the latest in a series of fashion startups to catch the eye of private investors; Warby Parker has attracted a staggering $115 million in capital from investors since 2011. New York City based Bonobos received $55 million in investments in 2014 to open thirty new guide shop locations over the next three years. Generating thousands of dollars of sales per square foot, Bonobos sees the road to profitability.
Chi-Hua Chien, co-founder of the investment firm that financed the bulk of Frank & Oak’s $15 million, weighed in on what’s guiding venture capital to this new market in the WSJ. “Retail has been reinvented and the innovation is not coming from big brands, but startups that [begin] with e-commerce and realize we are in a mobile-first world now.” At Paul Evans, we’re thrilled to be included in the ranks of men's fashion startups. Want to learn more about how we’re shaking up the menswear market by bringing quality footwear to a new generation of fashion savvy consumers? Check out our entire collection here.