DSTLD Becomes the 1st to launch 2nd Round of Reg A+ Funding

DSTLD Becomes the 1st to launch 2nd Round of Reg A+ Funding

- in Business

DSTLD, the direct-to-consumer clothing company known for its premium, affordable denim, was the first fashion brand to ever launch a Reg A+ campaign following the game-changing Jobs Act legislation that allowed small businesses to start selling equity to the masses via crowdfunding in 2016.

Before these new guidelines passed, companies were only able to offer equity to accredited investors, who make up less than 1 percent of the American population.

Now, the pool of potential investors is enormous. Crowdfunding allows businesses to offer equity to just about anyone in the crowd.

DSTLD co-founders, Mark Lynn and Corey Epstein, raised $1.7 million from more than 1,700 investors.

In the year after the offering, DSTLD’s lifetime sales tripled. Its customer base doubled to 55,000. The fashion brand added six new employees to its team.

“I have been a huge fan of this model for years and for me it’s a no brainer,” says Lynn. “We believe this capital is more patient and willing to be aligned with the goals of us as founders and our incredible team.”

Lynn and Epstein say they faced many unknowns when they ventured into this unchartered territory.

“You realize you are a guinea pig in a new financial market and you know you are going to have challenges,” says Epstein.

image: Crowd Funding

DSTLD was the first-ever fashion brand to launch a Reg A+ financing campaign.