The Business of Fashion

TODAY’S MUST READFashion and beauty start-up valuations appear to have stabilised after plunging last year, though it may be months or even years before many return to their old highs — if they ever do. But there are ways for emerging and established players to ride out the downturn.

• The public markets are taking few, if any, entrants, and ongoing inflation makes it hard for fashion startups to sell their companies at the valuations they commanded two years ago.
• Brands with a clear path to profitability will likely wait for an open IPO window and raise smaller rounds of capital from existing investors to help drive growth in the meantime.
• Emerging companies that are attracting acquisition attention, are devising their exit plans earlier on in their life cycles.