Advised Fits.me on further investment from Conor Ventures

Transaction Summary

Advised Fits.me on further investment from Conor Ventures and existing investors

Transaction Overview

• Strata Partners acted as exclusive financial advisor to Fits.me, the leading provider of virtual fitting rooms and associated technologies to the fashion e-commerce industry, on an initial €1.5 million tranche of a Series A round of financing in January 2012 led by Entrepreneurs Fund, the London-based venture capital arm of the COFRA Group (which is also the holding company of global fashion retailer C&A)

• Since then, Strata advised on further tranches of financing totalling €2.0m in 2012 and early 2013 from Entrepreneurs Fund and existing and new angel investors from Estonia, Russia and Spain

• In March 2013, we advised a further investment round of €1.7m led by Conor Venture Partners from Finland. Including this round, Fits.me raised €5.2m in total from Jan 2012 to March 2013

• Strata provided a committed, hands-on approach from inception through to completion of the initial investment: drafting and tailoring the business plan and strategy, approaching global institutional and corporate venture investors, preparation of management presentations, co-ordination of the other advisors, and helping manage the completion mechanics including the reincorporation of Fits.me in the UK. For subsequent rounds, we coordinated the cap raise process in conjunction with Fits.me’s legal advisers

• Fits.me was founded in Estonia and backed by Estonian Development Fund (EDF); the transaction is Strata’s first deal for a client from the Baltic region

• Strata managed to complete a complex capital raising:
  • Company was still pre-revenue when we approached the Series A investors
  • As part of the initial investment, Fits.me had to reincorporate in the UK and investors had to exchange shares in the NewCo simultaneously with completion of Entrepreneurs Fund’s investment

Company Profile

• Fits.me provides an enabling software technology for fashion e-commerce sites. It is the leading provider of “virtual fitting rooms,” combining robotics and software to allow a customer to see a realistic image of what a particular garment looks like on a person of their body shape and size, and so to pick the size that best suits their personal style

• CNBC Business chose Fits.me as one of the Top 20 breakout brands for 2011, and more recently Vogue included Fits.me among the Online Fashion 100 for 2012 – the list of the Top 100 most influential names in fashion ecommerce. Among the first retailers to use Fits.me’s virtual fitting room were Adidas, Barbour, Boden, Ermenegildo Zegna, GILT’s Park & Bond, Hawes & Curtis, OTTO, Pretty Green and Thomas Pink (part of LVMH)