Acquired

Episode 49: The Stitch Fix IPO

Dec 4, 2017
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ANECDOTE

Founding Story

  • Stitch Fix, originally RackHabit, was founded in 2010 by Katrina Lake and Erin Morrison Flynn.
  • The idea came about because Lake disliked shopping but wanted to look professional, while Flynn had experience as a buyer at J.Crew.
INSIGHT

Target Demographic

  • Stitch Fix targets customers who care about their appearance but dislike the process of shopping.
  • This demographic proved larger than expected, spanning both men and women.
ANECDOTE

Funding Challenges and Success

  • Despite early growth, Stitch Fix faced fundraising challenges, even nearing inability to make payroll in 2012.
  • A bridge round from Baseline Ventures and subsequent Series A from Lightspeed Venture Partners secured their position.
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