ThredUp isn’t an outlier. There’s a war brewing over the junk in people’s closets, as investors funnel cash into the online clothing resale business, backing more than a dozen companies, each looking to capitalize on what they see as a weak spot for Amazon and even for resale leader eBay.
Venture capital firms poured hundreds of millions of dollars into fashion resale in 2015; total funding over the past five years has blown past the $400 million mark. In January, online consignment shop Tradesy raised $30 million. By the end of April, vintage luxury reseller RealReal had raised $40 million and social commerce site Poshmark had taken in $25 million. European resale shop Vestiaire Collective scored a $37 million round in September. Then came Goldman’s monster round for ThredUp, perhaps the most mainstream of the bunch.