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Metaverse fashion funding boom: the most notable investments in 2021–2022

The metaverse could represent a $1 trillion market by the end of the decade, CB Insights predicted. This makes the space a viable business opportunity, with investors coming up to fund metaverse-related companies. Last year, more than $10 billion in venture funding went toward startups involved in the metaverse. As we’ve already seen, fashion is one of the first industries that has smart and effective use cases in the metaverse. The explosion of interest, from fashion consumers and companies alike, has garnered serious investor attention to metaverse fashion startups. Let’s have a look at the companies that have received recent funding rounds and their ambitions to revolutionize fashion.

LincTex Digital, a fashion tech company most commonly known as Style3D, raised $100 million in a new funding round. From providing virtual try-on technologies and 3D body scanning, Style3D has expanded to offer digital services for fashion designers, allowing them to use big data to produce fashion collections. Style3D also recently pivoted to the metaverse, with digital fashion design and technology products. The firm will use the funds for international expansion and a further shift into the digital fashion realm.

The Fabricant, a digital fashion house for the metaverse, has raised $14 million in a funding round. The company’s mission is to build a decentralized fashion house that will dress the population of the metaverse and make the fashion industry more creative and sustainable. The funds are being used to support and expand the company’s initiative to build the “wardrobe of the metaverse” through its co-creation and NFT platform The Fabricant Studio.

RTFKT Studios, a fashion brand that focuses on digital products, has raised $8 million in a seed funding round. The company is best known for holding an NFT sale of digital sneakers in collaboration with 18-year-old artist Fewocious that yielded over $3 million in under 7 minutes. RTFKT Studios plans to use the capital to scale its team, build an NFT marketplace, and invest in people that are helping to develop a metaverse. Soon after the funding round, the company was acquired by American sportswear giant Nike.

UNXD, a curated marketplace for digital luxury and culture, has raised $4 million in funding from a list of crypto-native investors to bring luxury fashion to the metaverse. The company worked with Dolce & Gabbana on the fashion house’s first NFT collection Collezione Genesi, which fetched just under $6 million at final sale. With fresh capital at hand, UNXD will further scale its team, ecosystem, and roster of partner brands.

BNV.ME, the premium platform for fashion NFT sales, has successfully completed a $4 million Series A funding round led by Animoca Brands. The raise will enable the company to further expand its capabilities for creating elevated NFT experiences across the metaverse offerings that already exist and those that are under development, as well as growing its visibility and presence across the worlds of fashion, gaming, and crypto communities.

RSTLSS, a digital fashion label and co-creation platform, has raised a seed round of $3.5 million. The platform will allow artists, brands, and influencers to create and sell “multiverse fashion” through a gamified experience and help convert traditional intellectual property into NFT wearables. The company will use the investment to grow the team and refine the product before it launches.

With the projected value of the metaverse, it’s no surprise that investors are pouring millions into companies that make metaverse fashion a reality. The metaverse and NFTs are not only a great business opportunity for the fashion industry, but they also open the doors to a reimagined world of advertising.

As the company that provides immersive shopping experiences, Cappasity is now working on a solution that will allow brands to create NFT-based loyalty programs and add extra value to their products. Cappasity NFTs contain a section for additional materials that can be added even after the brand’s customer gets the NFT. So, retailers will be able to use Cappasity NFTs as a new customer communication channel to reward brand fans with premium memberships, loyalty bonuses, priority access to new product launches, and other rewards.

To provide a customer with a Cappasity NFT, a brand creates an NFT on the Cappasity platform and generates a QR code for printing it on the product’s tag. The buyer simply scans the QR code which directs them to the Cappasity platform and provides access to NFT. The video demonstrates how it works:

In 2021, Cappasity raised a new funding round, bringing the company’s total capital raised to $8.45 million. At the moment, Cappasity is raising a new round of funding to grow the company business, open new offices and invest more in marketing. Check out investors pitch video and contact us for more information at info@cappasity.com

Stay tuned and follow us on Instagram, Twitter or Facebook for more news on immersive content!

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