How a Used-Clothing Site Raised $8.4 Million in Venture Capital A new strategy for an online hand-me-downs company targeting moms helps raise an infusion of cash from venture backers.
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James Reinhart, Chris Homer and Oliver Lubin had a problem in common: They all had too many clothes. The three entrepreneurs (Reinhart and Lubin were roommates at Boston College; Reinhart and Homer were friends at Harvard Business School) estimated that they only wore about 25 percent of the clothing they owned. The rest just took up valuable space in their cramped apartments.
"We thought, "What if we took everything out of everybody's closet and created this virtual pile in the middle of the floor, then redistributed that pile based on what people said they liked and their sizes?'" Lubin says.