Today, online fashion company Rent the Runway announced that it has reached a $1 billion valuation.
Is that valuation deserved?
Rent the Runway, Inc. rents designer dresses, clothing, and accessories for women through its stores and online. It provides apparel, such as party dresses, gowns, jumpsuits and rompers, outer wear tops and bottoms, and jackets and coats; and jewelry, handbags, scarves, hats, and sunglasses.
How is the billion dollar valuation calculated?
Rent the Runway Valued at $1 Billion (New York Times) "The company said it had brought in $125 million in the latest fund-raising round, which was led by Franklin Templeton Investments and Bain Capital Ventures. That brings the total equity the New York-based company has raised to $337 million, and adds to a $200 million credit facility it secured in August."
I am a garmento and don't work in the financial market. When a company raises money is that sort of debt owed to someone. Should valuation be based on earnings? How much does the company earn each year?
New styles for every season from hundreds of designers. Why buy when you can rent? Think about the value proposition to the customer.
Rent the Runway
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