Nick Summers is a technology journalist for The Next Web. He writes on all sorts of topics, although he has a passion for gadgets, apps and Nick Summers is a technology journalist for The Next Web. He writes on all sorts of topics, although he has a passion for gadgets, apps and video games in particular. You can reach him on Twitter, circle him on Google+ and connect with him on LinkedIn.
The RealReal announced today that it has raised a $14 million series B funding round in order to support the infrastructure and “rapid growth” of its online luxury resale store.
InterWest Partners led the funding round, although Series A investors Canaan Partners, e.ventures and Greycroft Partners also participated. The RealReal says it has also received some “strategic investments” from Novel TMT Ventures, Panarea Capital, Suzy Welch and Sukhinder Singh Cassidy during this time.
Luxury fashion items are, by their very definition, expensive to buy. The RealReal hopes to make many of the most sought after designer brands more accessible, however, by offering pre-owned and authenticated clothes at a reduced price online.
Items by Chanel, Gucci, Cartier, Hermès and Manolo Blahnik, to name just a few, are all offered at up to 90 percent off their original retail price. The RealReal also puts on regular sales, usually lasting around 72 hours, to ensure that users return to the site.
Knock-offs are always a problem, but the company has a dedicated merchandising team, as well as authentication specialists and germologists that examine each item prior to its sale.
There’s two account tiers; general membership, which is free, and first look membership, which costs $5 per month but gives users a 24 hour head start on all online sales.
The RealReal says it now has over 750,000 members and receives more than 1.5 million visits each month.
“We’re changing the way people view their designer wardrobe and luxury items,” said Julie Wainwright, CEO and founder of The RealReal. “We offer consignors a way to get a return on what they originally paid for their designer items, effortlessly and lucratively. And, we offer shoppers a fun way to shop.”
Image Credit: Franco Origlia/Getty Images
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