“The RealReal is an online consignment store for luxury brands like Gucci, Chanel, and Louis Vuitton. The RealReal was founded in 2011 by the now CEO, Julia Wainwright. It was first created to be a consignment store only for women’s luxury clothing brands, but has branched out, with much success, to include men’s clothes, watches, and jewelry.
Since the company launched, it has raised over 170 million dollars in funding, growing faster than almost any of the similar start-ups of the time. More than once Julia Wainwright has told interviewers that the company was probably done raising money through private investment, only to start fundraising again a little while later. In fact in an article published in May of last year she said they would not be doing more “”for a while.”” Well in this case “”a while”” was apparently almost a year because the company is now preparing to raise another 100 million dollars.
Obviously they have had no lack of investors in the past, and while it has not been confirmed,one article speculates that the company thinks it needs to be bigger or more well-established to appeal to public investors, or that they realized that their potential for successful growth is so much bigger than they first thought that they want to increase their growth before their IPO.
The CEO attributes their considerable growth and success to the fact that they concentrated on the luxury industry, and ensure the authenticity of every piece that they sell. The brand has experimented with brick and mortar locations as well as pop-ups that offer items for sale as well as authentication experts and evaluation services for their sellers. These pop-up stores have been a great success in drawing in online customers from the areas in which they are set up. Wainwright says this is because it allows them to convince people of the quality of the goods they are selling.”