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Why Some DTC Brands Are Raising Debt, Not Venture Capital

Founders worried about the strings that come attached with outside investors are taking out loans instead, even at higher interest rates.
Men's skin care start-up Geologie is one of many brands taking out loans instead of venture capital to fund its growth ambitions.
Skin care start-up Geologie is one of many brands taking out loans instead of venture capital to fund its growth ambitions. (Courtesy Geologie)

After nearly a year in business, skin care start-up Nakery Beauty was in need of more capital.

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Further Reading

What Investors Want From DTC Brands

Cautious investors are finding safer bets in tech-focused platforms that create products for digitally-native brands over traditional DTC start-ups.

How the DTC Bust Could Play Out

Fashion and beauty start-up valuations appear to have stabilised after plunging last year, though it may be months or even years before many return to their old highs — if they ever do. But there are ways for emerging and established players to ride out the downturn.

Case Study | How to Build a Profitable DTC Brand

With the direct-to-consumer funding heyday now over, DTC brands need to turn a profit. Unlike their revenue-obsessed counterparts, DTC pioneers Marine Layer, Meundies and Trinny London offer a blueprint for achieving both top- and bottom-line growth.

About the author
Malique Morris
Malique Morris

Malique Morris is Senior E-Commerce Correspondent at The Business of Fashion. He is based in New York and covers digital-native brands and shifts in the online shopping industry.

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