The Real Real raises 40 million dollars

Luxury consignment website The Real Real has reportedly raised 40 million dollars in Series E funding.

The round led by Greenspring Associates also included other new investors like Broadway Angels, Next Equity, and Springboard Fund. The company's total funding now clocks in at 123 million dollars.

Existing investors for the company include Canaan Partners, E.ventures, Greycroft Partners, InterWest partners, DBL Partners, and Industry Ventures who also participated in this round of funding.

“I knew we were going to raise one more round before we went public, but I didn’t necessarily think we’d do it now,” said The Real Real founder and chief executive officer Julie Wainwright to WWD. “We got a good term sheet. It seems like companies are struggling a bit to get funding and that the environment for funding is pretty hard. Our lawyer said deals are falling apart left and right. It felt unpredictable. What if the world changes?”

The Real Real has raised 40 million dollars in Series E funding

The proposed timeline for the IPO won't change. The company still plans on giving it a few years before they go public.

Other companies have been looking at The Real Real to buy them, but any acquisition they make would only be with a company that has a business model close to their own. The new capital is expected to help them think differently about acquisitions going forward. A 240,000-square-foot warehouse is also opening in Brisbane, California.

The Real Real expects to double its revenue in 2016. The new capital is meant to help them grow both domestically and internationally. The site, which ships overseas, hopes to expand their overseas operations. They also have plans to open offices in Chicago and San Francisco this year.

Since the company launched in 2011, they have sold over 2 million items per month. They average about three million to four million unique visitors to their site per month. With the luxury industry continuing to see growth and people viewing luxury goods as investments, Wainwright believes that The Real Real has a very sustainable and promising business model.

If you are thinking of selling your designer goods from two years ago, The Real Real could be your best bet.

photo:realstyle.therealreal.com