ThredUP, an online exchange for children’s clothes, has raised $1.4 million led by Trinity Ventures with Founder Collective, High Line Ventures and NextView Ventures participating. This brings the startup’s total funding to $1.7 million.
ThredUP aims to bring affordability and convenience to the children’s clothing market, which is estimated to be valued as a $1 billion space. The platform allows parents to exchange boxes of outgrown kids clothing and shoes for new items that fit. Since launching a few months ago, thredUP has accumulated 12,000 members and saved families an estimated $195,000 in children’s clothing. The startup’s co-founder James Reinhart tells me that ThredUP is adding 1,000 new members per week.
The new funding will be used to build out the startup’s engineering team, to further product development and to acquire customers. And Reinhart says that ThredUP is expecting increased transactions on its platform in preparation for the Back to School season and Halloween. ThredUP will be holding its first costume swap on halloween.
The startup has a solid idea. Many parents end up donating old kids clothes to charity (which is a worthy cause) but ThredUP gives families an alternative to this and at the same time save families money on further spending.