HCP Invests In Stantt — The Future of Men’s Retail
Harlem Capital Partners (“HCP”) is happy to announce our investment in Stantt, the new standard in men’s apparel, making this our fourth portfolio company. With over 75 shirt sizes from over 500,000 data points, Stantt provides ready-to-wear men’s dress and casual shirts that provide a perfect fit.
We have gotten to know Matt Hornbuckle, Co-founder and CEO of Stantt, over the past few months. After hearing his story and testing the product, it was clear that the Stantt team had created something special. In under three years, they have built a strong brand and a loyal customer following.
But why did we invest in a company that most of you probably have not heard of? Well, we look at all investments through the lens of our 7 investment criteria and Stantt exceeded all of them. We haven’t publicly shared any detail around our decision process, but we think this is helpful for future founders looking to partner with us.
Our 7 Investment Criteria
- Resilient management team with at least one full-time founder
We met in-person and spoke on the phone with Matt numerous times over the course of 4 months and felt very confident in his abilities. His passion is contagious
2. Run-rate revenue of $100k+
- Stantt was well ahead of our minimum revenue requirement and showed positive customer loyalty through strong repeat rates and low return rates
3. Ability for HCP to provide strong added value
- Matt was receptive to our ideas even prior to our investment. We never expect a founder to blindly follow our suggestions as we are investing in them for their vision, but self awareness is critical for founders to adapt when necessary
4. Attractive valuation in priced or capped Seed or Series A Round
- Felt very comfortable with the valuation and thought it was balanced for both the management team and investors
5. Investment of management team’s personal capital
- The management team, their family and friends invested in prior rounds showing a strong belief from management and from those closest to them
6. Underserved markets with favorable dynamics and differentiated product
- Traditional sizing (S/M/L) only fits 15% of men and custom clothing takes weeks to deliver compared to Stantt clothing which fits 98% of men and takes under 7 days to deliver
- There are approximately 6 million men 25–49 years old making $85k+ in urban areas resulting in a $1B+ market
7. Investment realization horizon of 4 to 7 years
- There is a clear path for acquisition by a strategic company as there have been acquisitions in the men’s clothing space such as Bonobos by Walmart in 2017 and Trunk Club by Nordstrom in 2014. There will continue to be acquisitions as retail store innovation internally cannot keep up with smaller players
We are excited to partner with Matt on the next phase of Stantt’s journey and encourage our friends to try out a shirt.
Harlem Capital Partners