Skims. Momentum is the product.
Skims raised $225 million at a $5 billion valuation, six years after launch. The bet is on momentum, not fabric.
THE GIST ON SKIMS: "Skims' $5B Rocket Ship"
What is Skims worth?
Skims has just raised $225 million, putting its valuation at $5 billion. In six years it has gone from a small shapewear brand started by the most famous person on the planet to a company doing over a billion a year, expanding into activewear, beauty and global retail.
What is the valuation built on?
Not fabric or fashion. Momentum, and Skims has more of it than almost any other consumer brand on the planet.
It's a blueprint for billion dollar companies in the social media era: fast, inclusive, internet fluent and designed to go viral from day one. Legacy brands rely on heritage. Skims relies on culture, and culture changes every day.
What is the lesson?
Investors are betting on a business that moves like a tech company: fast product cycles, huge community buy-in and marketing that prints itself. It's the engine behind the product that's worth five billion.
Consumer brands are heading towards relevance, not heritage. A six-year-old shapewear brand valued above a load of iconic apparel companies tells you the new rules. Momentum beats tradition.
Heritage or momentum: which matters more to a brand?
Your take. One tap, then see how everyone else voted.
Quick answers
How much has Skims raised?
$225 million, valuing the company at $5 billion.
How big is Skims?
It does over a billion a year, six years after launch, and is expanding into activewear, beauty and global retail.
Why is it valued so highly?
Investors are betting on momentum: it moves like a tech company with fast product cycles and community buy-in.
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