Information on the Target

The Fold is a luxury women’s workwear brand that has successfully raised £1.7 million through a crowdfunding initiative aimed at increasing female participation in investment. This campaign attracted a significant number of female investors, with two-thirds of participants being women—an impressive figure that is nearly three times higher than the industry average on the Crowdcube platform. Furthermore, nearly half of the investors were first-time participants, highlighting the brand's successful appeal to a demographic often underrepresented in investing.

Founded by Polly McMaster, The Fold has carved out a niche as the go-to brand for ambitious women seeking stylish and professional outfits. Over the past decade, it has built a solid reputation for quality and design, appealing to a wide clientele, including high-profile figures and celebrities such as the Duchess of Cambridge and Oscar-winning actresses Olivia Coleman and Helen Mirren.

Industry Overview in the Target’s Specific Country

The UK investment landscape reflects a significant gender imbalance, with recent statistics revealing that 87% of all venture capital funding is raised by male-only founding teams. The percentage of funding attributed to women-only teams has seen a troubling decrease from 3% to 1% since 2018. Despite these challenging figures, research indicates that female investors tend to achieve annual returns that are nearly 2% higher than their male counterparts, suggesting a potential for growth in female-led funding.

Addressing the gender investment gap is becoming increasingly important. In the UK, the gap is estimated to be almost £600 billion, indicating a need for initiatives that encourage women to engage in financial investments. Campaigns similar to The Fold's 'Start with One' initiative aim to rally support and motivate women to invest, thus helping to balance the inequities present in the investment sector.

In this context, The Fold operates not only as a retail brand but also as a campaigning force that empowers women in their financial pursuits. By providing stylish workwear, the brand contributes to the professional empowerment of women, reinforcing its business model with social advocacy.

The Rationale Behind the Deal

This crowdfunding initiative represents more than just a fundraising effort; it embodies The Fold's mission to mobilize female investors and address financial disparities. By encouraging women to enter the investment space, The Fold aims to influence not only who gets funded but also the types of ventures that emerge in the market. The funds raised will facilitate the brand's expansion into new retail locations, enhance personal styling services, and bolster its digital presence, all of which are intended to capture a larger share of the growing market for luxury women's workwear.

Information About the Investor

The Fold’s crowdfunding campaign was led by Active Partners, an investment firm known for supporting innovative brands such as Leon, Soho House, Finisterre, Rapha, and Secret Cinema. Janice Cargo, a Partner at Active Partners, has been actively involved with The Fold since meeting Polly McMaster in 2015. Cargo recognizes the extraordinary community and brand that McMaster has built, which focuses on empowering women and fostering ambition.

Active Partners is dedicated to backing diverse teams to combat inequities within the funding ecosystem. They see significant potential in supporting initiatives that focus on innovation and economic growth, thus contributing to a more inclusive investment landscape.

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The success of The Fold’s crowdfunding campaign, highlighted by the high female participation rate, signals a promising investment opportunity. By aligning financial goals with social impact, The Fold not only generates revenue but also serves as a catalyst for changing the investment culture. This dual approach can attract more investors seeking socially responsible opportunities.

Moreover, the brand’s commitment to empowering female investors positions it uniquely in a market ripe for growth. As The Fold continues to expand its retail presence and personal styling services, it is well-placed to capture increasing demand for luxury workwear among women who value style and professionalism.

Investors looking for opportunities that combine strong financial returns with social impact may find The Fold's approach particularly appealing. By bridging the gap between luxury fashion and supportive community initiatives, it has the potential to redefine norms in the investment space.

Overall, the combination of strong leadership, a proven track record of growth, and a clear mission to empower women suggests that The Fold represents a compelling investment opportunity both for its financial prospects and its role in addressing gender-based disparities in investment.

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