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Loan The Look

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Team - existing team, founder, strengths, weaknesses, hiring plans

  • Loan The Look (LTL) was founded in 2020 by sisters Isabella, Bea and Claudia Hill. Claudia, the youngest, runs the company day-to-day, with her older sisters providing support from the side. LTL employs one other employee, Ellie Peers, who is Marketing Manager at the company running the social media accounts, website content and other channels. Claudia attended the University of Edinburgh, graduating in 2021, before diving head first into LTL and scaling the business to its current size.

Market - problem to be solved, size, trends

*All statistics drawn from Statista*

  • The rental fashion market has grown exponentially in the last few years due to a number of factors. A cost of living crisis, the pandemic and an increasing environmental consciousness among the public has paved the way for this exciting and lucrative sector.
  • Overall, the apparel market in the United Kingdom is projected to generate a revenue of US$85.85bn in 2024, with an estimated annual growth rate of 3.55% (CAGR 2024-2027). Within this, women's apparel holds the largest market volume, expected to reach US$47.02bn in 2024.
  • Other factors to be considered:
    • Per capita revenue is expected to contribute US$1.26k in 2024.
    • Looking ahead, the volume of the Apparel market is anticipated to reach 4.2bn pieces by 2027.
    • Additionally, the market is expected to demonstrate a volume growth of 1.0% in 2025.
    • The average volume per person in the Apparel market is projected to be 60.7 pieces in 2024.
    • Furthermore, it is forecasted that 94% of sales in the Apparel market in the United Kingdom will be generated by Non-Luxury by 2024.
    • The United Kingdom's apparel market is experiencing a surge in demand for sustainable and ethically produced clothing.

What is the problem they are solving?

Fast-fashion has an enormous and nefarious environmental impact. When it comes to climate change, the manufacture and shipping of new clothing contributes XXX to global carbon emissions every-year, and it is increasingly urgent for mankind to pivot away from unsustainable practices in incumbent industries such as fashion to help keep global temperatures as low as possible. LTL represents this potential global shift away from environmentally damaging practices in fashion. With the right funding and support LTL could usher in a new era for fashion in the UK and beyond, making a significant dent to global emissions. LTL is also a better financial option for consumers who often spend a fortune on an outfit only to be worn once before spending the rest of its life in the wardrobe or to be re-sold with much hassle on vinted, depop or Ebay. LTL stands against this, offering the same outcome for a more sustainable and lower financial cost.

Competitor landscape - incumbents, other start-ups, advantage

The rental fashion market is growing and competitive, as outlined in the Market section. There are a number of businesses attempting to gain market cap in the space in the UK and Europe. LTL has a number of UK-based businesses it is competing with, however, the model it most similar to is that of Rent the Runway, an American incumbent that has been around since 2009. They are yet to be operational in the UK and so there is a gap in the market for LTL to optimise. LTL also looks to differentiate from competitors with its in-person consultations and try-before-you-rent model. It handles dry cleaning and delivery as well, all incorporated in the price. LTL also steers clear of the peer-to-peer model.

  • Rent the Runway - In 2009, RTR disrupted the trillion-dollar fashion industry and changed the way women get dressed forever by pioneering the ‘Closet in the Cloud’: a dream closet filled with an infinite selection of designer styles to rent, wear and return (or keep!). Every trend, every color, every print, everything you’ve ever wanted to wear — for a fraction of the cost. LTR is looking to become the RTR for the UK and potentially Europe.
  • Hurr - Founded in 2018, Hurr specialises in peer-to-peer rental, meaning you're borrowing from the closets of real people who love fashion. Collaborations with Flannels and Matches and an incredible party-season rental edit with NET-A-PORTER, you have access to high-end designers.
  • Cloan - If you've ever wanted to swap wardrobes with your favourite influencer, Cloan gives you the chance to do so. Working closely with content creators and people who have careers within the industry, you can find your dream rental by brand, size or person—key Cloan renters have their own profiles, so when you find someone whose style and sizing suits you, you can effectively borrow their entire capsule.
  • BY ROTATION - Peer-to-peer rental site By Rotation has always led with a focus on community, encouraging users to follow the renters whose style they admire and ensuring the products on offer are refreshed regularly. With gorgeous clothes and accessories to choose from, consider this your one-stop rental hotspot.

Product - product suite, USP, IP, supply chain overview, improvement areas, pricing model, product roadmap, product development strategy, sustainability factors

LTL provides a rental service for high-quality and luxury outfits as a more sustainable and cheaper alternative to customers dressing up for a specific occasion. With a London-based studio, you can even book an appointment to try on specific pieces before committing to renting. You can shop by brand, designer, style, type of garment and by occasion.

Their offering has three stages: Pick, Pose, Pack.

  1. Select your outfit, choose your size and complete your rental start and end date. For London clients, they offer a trusted eco-courier service to deliver the rental on day 1 of your rental period, within a 15-minute window of your choosing (anytime from 8am-midnight, 7 days a week). Or, customers can collect from their studio for free. For the rest of the UK, it will be posted with Royal Mail.
  2. Wear the outfit at an event and feel great knowing you have done something good for the planet and avoided a heavy price-tag for a garment you might only wear once.
  3. Return the items
    1. For London clients, if you select the eco-courier option, their couriers will come and collect from you within the 15-minute time slot you chose (anytime from 8am-midnight, 7 days a week). Or, you can drop it back to the studio.
    2. For the rest of the UK, simply pop the item into the enclosed mailer bag, which has pre-paid postage included, and drop it back to your local Post Office on the final day of your rental period.
    3. LTL will take care of the cleaning.

Financials and fundraising history - revenue, contribution margin, AOV, LTV, CAC, burn rate and runway, customer acquisition channels, customer demographics, customer feedback,

  • All Investment to date has been funded by the Hill sisters and family. It is unknown if venture capital is part of their plans at this stage. Next steps: to get a sense of where the company stands financially, whether they are pre-revenue/ profitable. How much have they grown year on year in terms of customers. How much it costs to run, cap table, other investments, achievements to date and use of funds.

Round Dynamics - fundraising quantum and valuation, valuation rationale, ideal investor, commitments, timeline to close, next fundraise plans.

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