Corporate Finance Division
Fashion & textiles Industry Venture Capital
The Fashion & Textiles industry affects the life of every one, either directly or indirectly. There are various categories in "textiles" – Technical Textiles, Industrial Textiles, Safety Textiles, Medical Textiles, Intelligent Textiles or Smart Textiles.
From a mere domestic industry to an organized industry, The Fashion & Textile Industry has witnessed rapid progress. It began with the industrial revolution and gained almost a supreme status with time. Rich and consistent production of silk, wool and cotton has fueled the growth over last few decades. As people became more and more fashion conscious, the Fashion & Textile industry were reaping the benefits.
The concept of a "Fashion & Textiles" industry originated in England and reached to other parts of the world like Europe and North America. The textile manufacturing process became more and more mechanical with the progress of time, and by the 21st century, Japan, China and India had become the leading producers of textiles. Obviously, the cheap labor played a crucial part in this growth process.
The World trade organization has consistently taken correct and adequate steps to promote the Fashion & Textiles industry. In 1995, the WTO took a major step abolishing the quota system on textile and clothing items. In spite of high tariffs and quantitative restrictions imposed by developed countries, emerging economies have continued to export textile and clothing items to the rest of the world.
As per the latest statistics, the global Fashion & Textile market is expected to reach worth 1.2 Trillion Dollars in 2025.
Fostering Growth without Diluting Equity:
For Fashion & Textiles Industry companies at critical stages of development, debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. At Synergy Capital Markets, not only do we understand the industries of our portfolio Fashion & Textiles Industry companies, but we also understand the growth process - and occasionally the growing pains - they undergo.
When venture debt is used appropriately, we believe entrepreneurs gain the following benefits:
Able to raise capital in a way that benefits the team and the business as a result of the greater flexibility offered by venture debt than traditional forms of debt financing
Have more time between equity rounds to build the business and achieve critical milestones, which creates potential for greater valuation
Retain a larger ownership stake in the company prior to an IPO or other liquidity event
Achieving milestones quickly in many cases also means reaching the IPO stage more rapidly