ModCloth is an online retailer that sells independently designed, vintage-inspired fashion and décor. Co-founded by Eric Koger (CEO) and Susan Gregg Koger, the company operates a site featuring emerging designers and community-driven programs. It runs the Be the Buyer program, which lets customers vote items from emerging designers into production, and recently launched the Make the Cut Contest, a crowdsourced design competition where community votes determine designs put into production. The company says it will use the funding to grow teams in San Francisco, Pittsburgh and Los Angeles, continue building its site, and expand Be the Buyer. The article reports ModCloth closed a $25m funding round led by Norwest Venture Partners with participation from existing investor Accel Partners. As part of the transaction, Josh Goldman of Norwest Venture Partners will join ModCloth’s board. ModCloth curates vintage-inspired apparel from indie designers and handles distribution and merchandising, with cofounder Susan Koger selecting items for the site. The company has been profitable since 2009 and now employs over 150 people. ModCloth plans to use new capital to expand inventory and distribution capabilities to address frequent sell-outs of popular items. It will also build out social features, including a more robust voting mechanic to let users help choose designs and identify top-taste members who could win employment offers and prizes. The company began in a limited form in 2002 and expanded after the founders graduated from CMU in 2006. ModCloth is opening a new San Francisco office to serve as its headquarters and a supply chain–oriented office in Los Angeles.

Total raised

$45M

Funding rounds

2

Latest round

Equity

Latest activity

May 2012