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Despite growing consumer interest, VC investment into European impact fashion startups was severely impacted last year, with a drop from €272m in 2019 to an estimated €97m in 2020, according to @dealroomco.
Has Covid damaged the rise of impact fashion in Europe?Our analysis
Has Covid damaged the rise of impact fashion in Europe?Our analysis
1/ After a sharp increase in 2019, investment in Europe’s impact fashion startups — who want to make the fashion industry more sustainable, was 3x lower in 2020.
Europe’s fashion startups also saw a drop in VC funding from €797m in 2019 to an estimated €524m in 2020:
Europe’s fashion startups also saw a drop in VC funding from €797m in 2019 to an estimated €524m in 2020:
2/ A few European impact fashion startups still managed to raise capital, but the top rounds of 2020 were still low compared to other tech sectors:
@vestiaireco €59m
@OtriumOfficial €24m
@MaterialXchange €5m
#BeyondLeatherMaterials €1.1m
@joinourco €0.54m
@vestiaireco €59m @OtriumOfficial €24m @MaterialXchange €5m #BeyondLeatherMaterials €1.1m @joinourco €0.54m
3/ Although Europe is home to many fashion hubs like Milan, Paris and London, investors felt more confident about investing in the impact fashion industry in Canada and the US: the flow of investment was less disrupted than in Europe.
4/ From the disruption of the global supply chain to a massive drop in profit, the global pandemic took its toll on the overall fashion industry, according to @BoF and @McKinsey’s latest report on the state of fashion in 2021.
5/ But the impact of fashion is still present in consumers' mind: 66% of 
consumers said they would stop or significantly reduce shopping from brands mistreating their employees or suppliers:
consumers said they would stop or significantly reduce shopping from brands mistreating their employees or suppliers:
6/ “The market opportunity for sustainable brands is expanding and there’s a higher demand for second-hand clothing and sustainable fashion overall,” says @MattCristal, @dealroomco’s impact specialist.
7/ As many European countries are still in lockdown at the moment, fashion executives think the pandemic is their biggest challenge of 2021. They see a growth opportunity in digital — and some in sustainability:
8/“There’s been a big boost in impact fashion in 2020, a lot of big brands like @gucci have reduced their collections to two per year,” says Melanie Mollard from @heuritechdata. But she remains “on the fence” about fast-fashion brands like @hm launching sustainable collections.
9/ It looks like 2021 will be a defining year for impact fashion, and we will see whether investors will follow consumer trends 
How do you think Europe’s impact fashion sector will evolve in 2021? @FraMazzarella @PoloVillaamil @karlitapita @ShankarSharvari @NinaSkarra
How do you think Europe’s impact fashion sector will evolve in 2021? @FraMazzarella @PoloVillaamil @karlitapita @ShankarSharvari @NinaSkarra