Fashion tech startup The Folklore announced it has secured $3.4 million in seed funding, bringing its total funding to $6.2 million.
The new funding round was led by venture capital firm Benchstrength and included participation from Techstars, Black Tech Nation Ventures, and Slauson and Co.
The funds will be used to further develop their B2B platform and empower more diverse and marginalized brands in the fashion industry.
Their B2B offerings include The Folklore Connect, an online wholesale management platform that equips brands with user-friendly sales technology and increased discoverability through a network of global retailers.
One new service is The Folklore Capital, offered through partners, which allows brands to receive loans of up to $1 million as working capital. Rasool said a pilot program showed that brands typically seek loans between $10,000 and $30,000.
“Access to capital is probably one of the biggest things that prevents small businesses from scaling,” Rasool explained to TechCrunch. “For diverse brands in particular, there are a lot of economic hurdles that these groups face, which makes it even harder for them to access capital. Since a large makeup of our community is diverse, we wanted to make sure that they had more resources that they can use to access capital.”
The Folklore also plans to offer additional resources to brands, such as The Folklore Source, a freelancer and manufacturing marketplace, and The Folklore Hub, which will provide educational content and downloadable templates.
With this additional funding and focus on user needs, The Folklore is well-positioned to grow its reach and empower even more creators and brands in the fashion industry.
by Tony O. Lawson
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