parade

All that cash might be tempting, but the motivations of founders and venture investors are rarely aligned, writes Imran Amed.

The underwear start-up was once pegged as Gen-Z’s answer to Victoria’s Secret. But investors, executives and founder Cami Téllez couldn’t agree on whether to prioritise growth or profitability. They ended up with the worst of both worlds.

The Gen-Z intimates brand’s sale to a little-known strategic is the latest in an ongoing series of less than desirable exits for unprofitable digitally-native start-ups.

A growing number of beauty brands are including loyal customers in the product development process and offering ways for fans to directly benefit from their growth.

Instead of emulating the face-paced growth favoured by their predecessors, Gen-Z-centric fashion and beauty start-ups are taking a steadier approach to brand-building.