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May 09, 2016

Digitally Focused Luxury Apparel Brand DSTLD Files for Regulation A+ Financing

DSTLD is First-ever Fashion Company to Seek Equity Crowdfunding under JOBS Act

DSTLD (“distilled”) announces that they will open their Series A capital raise to launch a live equity crowdfunding campaign, also known as Regulation A+, to make it possible for anyone to buy shares in the company. They plan for their campaign to go live in a few months. This marks a pivotal juncture for DSTLD as they are the first-ever fashion company to seek equity crowdfunding from their community of brand loyalists. Founded in 2014, DSTLD is, a direct-to-consumer luxury apparel brand disrupting the $200 billion fast fashion market with fairly priced premium denim and essentials.

The decision to raise funds via Regulation A+ comes after conducting an initial “testing the waters” campaign in October 2015, which gauged their community’s interest in investing. The campaign received a powerful response, securing over $12.1 million in indications of interest from more than 2,100 individuals. The public round is made possible by the recent amendment to the Jumpstart Our Business Startups (JOBS) Act, which permits anyone to invest in a private company, an opportunity previously only available to the wealthiest 2% of Americans. DSTLD relaunched their testing the waters campaign this week and will continue to accept indications of interest in the months leading up to their live campaign.

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Why Equity Crowdfunding?

DSTLD has previously raised $5M through traditional avenues - accredited investors and venture capitalists. However, when thinking about how they wanted to grow their business, DSTLD saw more value in inviting their customers to become partners, creating a group of brand ambassadors fueling the company’s growth.

For all retail companies, establishing brand advocates is crucial to the long-term success and relevancy of a brand. Offering customers the opportunity to become investors reflects DSTLD’s position as a direct-to-consumer company: cutting out the middleman to generate a transparent, mutually beneficial relationship with its community.

“We’re excited to be the first-ever fashion company to take this approach - we have a passionate customer base that shares our vision - a line of high quality essentials, built to last, in order to reduce the impact fashion is having on our world. Since our customers are our biggest assets, it made sense to market our cause to the 98% over the 2% and to have our community become partners in our growth,” says co-founder Mark Lynn.

DSTLD is hoping to raise up to $6 million and plans to use funds to expand product selection and increase paid marketing efforts. They also plan on developing an investor portal on their website where members can provide input on prototypes, suggest new product development, gain access to business analytics, take part in live webinars with company executives, and receive exclusive perks.

About DSTLD

DSTLD launched in April 2014 with a focus on premium denim. Since then the brand has expanded its offering to include everyday essentials, like luxurious tees, fine leather belts, and timeless leather jackets - items that combine utility, quality, and a contemporary aesthetic to remove the guesswork in getting dressed.

Their online only, direct-to-consumer business model eliminates excessive markups and costs because they refuse to sell through traditional wholesale channels like department stores and boutiques, allowing them to offer quality clothing for about one-third the price of its premium competitors.  Since it’s launch, the DSTLD has sold over 54,000 items to more than 21,000 customers.

“Retail is undergoing an historic transformation. Fashion is no longer about labels, it’s about being effortless and stylish. We’re focused on providing a wardrobe for people who define themselves by what they create not the labels they wear,” states co-founder and CEO Corey Epstein.

To learn more about DSTLD and investing, please visit their campaign page on SeedInvest https://www.seedinvest.com/dstld/series.a

For press inquiries, please contact Hannah Laverty, hannah@dstld.la.


DISCLAIMER

Denim.LA, Inc. (“DSTLD”) is accepting reservations for an Offering under Tier II of Regulation A. No money or other consideration is being solicited, and if sent in response, it will not be accepted. No sales of securities will be made or commitment to purchase accepted until qualification of the offering statement by the Securities and Exchange Commission (the “Commission”) and approval of any other required government or regulatory agency. A reservation is non-binding and involves no obligation or commitment of any kind. No offer to buy securities can be accepted and no part of the purchase price can be received without an Offering Statement that has been qualified by the Commission. A Preliminary Offering Circular that forms a part of the Offering Statement has been filed with the Commission, a copy of which may be obtained from https://www.sec.gov/Archives/edgar/data/1668010/000114420416089831/v434925_partiiandiii.htm.

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