Digital Brands Group Exceeds $1M in Online Public Offering After Five Days
Los Angeles, CA (October 22, 2018) -- Today, Digital Brands Group (DBG) announced that it has exceeded $1M in investments after only five days into its live Regulation A+ campaign on SeedInvest. This is the company's third equity crowdfunding round with SeedInvest, and the Group has previously raised over $4.5M through the platform. DBG is also pursuing a potential IPO, which should accelerate growth and create liquidity for its investors.
Digital Brands Group is the parent company to popular digital denim brand DSTLD. In 2016, DSTLD became the first-ever fashion brand to raise money through Reg A+ financing, a section under the JOBS Act voted in by the SEC that allows anyone to invest in a private company, not just the wealthiest 2%. Its prior fundraising has allowed DSTLD to build a strong group of brand evangelizers and to grow and evolve its platform into a unique and compelling business model under the name Digital Brands Group.
DBG is a curated collection of digital-first lifestyle brands that brings together like-minded direct-to-consumer names into one portfolio that shares operational, infrastructure, and data resources as a means to drive down redundant fixed costs that are expensive to maintain and grow for direct brands. The Group believes that a portfolio model will increase existing shareholder, customer, and brand value.
DBG is pursuing a build and buy strategy, with a plan to launch or acquire one to two brands per year. The brands will have a digital-first focus in addition to an omni-channel customer experience, which will include showrooms, pop-ups and partnerships with retail brands and department stores. They have already been approached by or referred to a handful of companies since the launch of the Reg A+ campaign.
Already part of DBG is DSTLD, which recently surpassed $15.8M in revenue from over 75k customers. DBG is also launching a luxury performance suiting and sportswear brand, ACE Studios, in Q4 2018. ACE will leverage CEO Hil Davis’ experience, which includes founding J. Hilburn in 2007, a bespoke tailored clothing brand which he built to a $55M company in just six years.
“The portfolio model cuts redundant expenses across our brands, which will drive down fixed costs, generate meaningfully more cash flow, and give our brands and their creative leaders the freedom to focus on product quality, design, innovation and great creative campaigns,” says Davis. With increased funds available to invest into product as well as revenue-generating marketing programs, DBG predicts accelerated revenue growth and profitability.
DBG’s vision is led by co-founders Corey Epstein and Mark Lynn, CEO Hil Davis, and COO/CFO Kevin Morris. The Group’s experienced executive management team has first-hand experience building and scaling direct brands (DSTLD, Winc.com, J. Hilburn) from the ground up.