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Investing in Textile Innovation

Investing in Textile Innovation

16/10/2019

This report explores the opportunities available for investors in the textile and apparel innovation ecosystem. The fashion industry, valued at $1.7 trillion, presents significant environmental and social challenges, necessitating investment in innovative solutions to improve sustainability and efficiency.

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Executive Summary

The textile and apparel sector remains one of the most resource-intensive industries, contributing significantly to environmental degradation. Despite the industry’s rapid growth, investment in innovative solutions remains limited. The report highlights:

  • The pressing need for sustainable innovations in the supply chain.
  • Emerging investment opportunities in textile technologies.
  • Case studies of successful innovations and funding trends.

The role of venture capital in scaling sustainable solutions.
The findings emphasise the industry’s readiness for transformation and the potential returns for investors willing to back early-stage innovations.

Goals of the Report

  • Identify key challenges in the textile industry that demand innovation.

  • Map investment opportunities across different technology categories.

  • Highlight successful case studies of textile innovators.

  • Provide insights into the investor landscape and funding trends.

  • Encourage increased capital allocation to sustainable textile solutions.

Conclusion and Recommendations

The fashion industry’s transformation depends on the adoption of sustainable innovations. Despite increasing commitments from brands and retailers, funding gaps remain a major barrier. Investors have a unique opportunity to:

  • Fund early and mid-stage textile startups.
  • Support the scaling of disruptive technologies.

Leverage sustainability-driven consumer trends for long-term profitability.
Fashion for Good’s network provides valuable guidance for investors looking to enter this space.

Glossary

  • CAGR (Compounded Annual Growth Rate): A measure of investment growth over time.

  • Circular Economy: A regenerative economic system focused on minimising waste.

  • Sustainable Innovation: Technologies that reduce environmental impact in production.

  • Textile Supply Chain: The process from raw material production to garment retail.

  • Venture Capital (VC): Private equity financing for startups with high growth potential.

Contacts for the project

  • Fashion for Good

    Katrin Ley, Managing Director 

    Rogier van Mazijk, Investment Manager

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