7 min read

Dress for success

Dress for success
Photo by Arūnas Naujokas on Unsplash
Lithuania Tech Weekly #146
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  • Fashion. Expect startups to go after niches Vinted leaves behind - as fashion+sustainability are taking off, Rex Woodbury points out:
There’s a big business to be built here. In a market approaching $200B in size, most of the dedicated players are still sub-$1B in revenue. The biggest winners remain the Ebays, Craiglists, and Facebook Marketplaces of the world—antiquated products that haven’t evolved in years. This creates the opening for a new player. Generational tailwinds are there (sustainable fashion, off-price commerce), alongside a technology unlock (AI). Tying together purchase → resale is the key.

Vinted, I believe, will surprise us not by the next big round or even an IPO - but by growing way, way bigger, as a true superlinear return asset. What if today is still very early days for them? Think of companies that are almost "category of one", such as Spotify or AirBnB. Alternatively, let's look at incumbents. More than 23 years ago H&M opened their first US store on Fifth Avenue, New York. Now they have 4300+ stores, 150,000 employees, and around EUR 20B in revenues.

To play in this fashion transition, Ieva, Karina and Daniel are kickstarting a dedicated fund - called &beyond. Indre has an idea for Tiings – a zero-effort fashion repairs marketplace for busy people & brands. Estonian Yaga raised EUR 2.2M last year for a second-hand fashion marketplace in Asia and Africa. Also Estonian, KIUD is transforming discarded textiles into packaging material. Friendly Textiles (LT) believes wool can come from brushed-out dog undercoat. And The Knotty Ones are growing further, now available on Revolve (and also featured by the Guardian).

  • Building in AI space (or trying to keep up with OpenAI releases). There are a few VC newsletters we try not to miss weekly, one of them is from Angular Ventures. In the last issue, Gil Dibner looks at 3 distinct AI startup types they receive pitches: 1) thin and ephemeral 2) big and weak and 3) small and strong.
These startups are often “strong,” in my view because they tend to have a pretty robust layer of application functionality built on top of the data and AI layer that underlies them. They sometimes generate their own proprietary data. They have enough domain expertise, for example, to be able to create barriers to entry around LLM inputs and outputs in ways that less experienced teams would not be able to devise. Their strategic depth often extends into their go-to-market operations.

This is something JB and evergrowth team is aiming at, cloning their looong years of experience into powerful sales ICP mapping, searching - and even outbound email drafts and objection handling. Becoming full-suite sales solution, but 100x the speed. Demo here - new RevTech startup rises?

What Are AWS Credits for Startups and How to Get Them? Exploring how early-stage firms can secure up to $100,000 in free AWS credits.

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