Earlier this year, Conde Nast financially backed a startup that lets people buy clothes directly from runway shows, Moda Operandi. Today, it has invested in another fashion startup, Rent The Runway, a site that lets people borrow designer dresses instead of buy them outright.
Rent the Runway has raised a new $20 million round of financing. All of its existing investors are back in, including KPCB, Bain Capital and Highland Capital Partners. Conde Nast invested too, and Its president, Bob Sauerberg, is joining Rent The Runway's board.
"We are excited about diversifying our portfolio through an association with Rent the Runway which allows our readers a new way to access luxury brands and we look forward to creating unique consumer-centric programs with them,” says Sauerberg. Conde Nast is the magazine giant behind brands such as Vogue and Glamour.
"This is a partnership beyond just being an investor," says founder Jennifer Hyman. "We will be integrating with their organization to take advantage of marketing and sales prowess they have, and help create brand awareness for Rent The Runway.”
Hyman's company has three million members and 170 designer brands. It has raised more than $50 million to date, and it recently launched a search tool that shows designer clothing on everyday people instead of models, so users can see how an item truly fits.
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