Digital Brands Group

Digital Brands Group

Growth Stage

Revolutionizing the holding company model. Portfolio of high-growth 'digital first' apparel brands.

Revolutionizing the holding company model. Portfolio of high-growth 'digital first' apparel brands.


Raised this Round: Raised: $741,974

Total Commitments ($USD)



Start Date


Close Date


Min. Goal
Max. Goal
Min. Investment


Security Type

Convertible Note


Series A

SEC Filing Type

RegCF    Open SEC Filing

Valuation Cap




Year Founded



Apparel & Fashion

Tech Sector


Distribution Model




Capital Intensity



Los Angeles, California

Business Type

High Growth

Digital Brands Group, doing business as DSTLD, is raising funds on WeFunder. It is the holding company of four direct-to-consumer brands. The brands under Digital Brands Group include DSTLD, ACE Studios, Bailey 44, and Harper & Jones. The brands relate to luxury lifestyle and digital-first. Digital Brands Group was founded by Mark Lynn and others in 2013 and has raised over $15 million since its inception. The proceeds of the current round of crowdfunding, with a minimum raise of $50,000 and a maximum raise of $760,250, will be used for product and inventory, working capital, marketing, and acquisition and IPO fees. Digital Brands Group currently has 1.2 million customers for the four brands it owns and generated revenues of $33.5 million in 2019. The holding company plans to acquire four more brands, including Jack Georges and three that cannot be disclosed.

Summary Profit and Loss Statement

Most Recent Year Prior Year












Net Income



Summary Balance Sheet

Most Recent Year Prior Year




Accounts Receivable



Total Assets



Short-Term Debt



Long-Term Debt



Total Liabilities



Financials as of: 11/10/2020
Create a free account today to gain access to KingsCrowd analytics.

Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Digital Brands Group 12/20/2020 Wefunder $52,841,157 $741,974 Convertible Note Funded RegCF
Digital Brands Group 04/28/2020 Wefunder $52,800,000 $303,708 Equity - Preferred Funded RegCF
Digital Brands Group 11/29/2019 StartEngine $35,000,000 $5,128,496 Equity - Preferred Funded RegA+
Digital Brands Group 08/09/2018 StartEngine $34,339,074 $64,586 Equity - Preferred Funded RegCF
Digital Brands Group 06/29/2018 SeedInvest $30,000,000 $3,160,526 Equity - Preferred Funded RegA+
Digital Brands Group 10/17/2017 SeedInvest $22,000,000 - Equity - Preferred Funded RegA+
Create a free account today to gain access to KingsCrowd analytics.

Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Valuation History

Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Employee History

Upgrade to gain access

Pay Monthly
Annually (Save 17%)


$25 /month
billed annually
Free portfolio tracking, data-driven ratings, AI analysis and reports
Plan Includes:
Everything in Free, plus
Company specific KingsCrowd ratings and analyst reports
Deal explorer and side-by-side comparison
Startup exit and failure tracking
Startup market filters and historical industry data
Advanced company search ( with ratings)
Get Edge Annual
Already a member? Log in here.

Ratings KingsCrowd Startup Rating Methodology Article

Blurred Ratings Bars Blurred Ratings Bars

Analyst Report Analyst Report Methodology Article


Digital Brands Group (DBG) is a holding company that aims to create a portfolio of high-growth digital apparel brands. DBG already has multiple brands under its umbrella, including high-end denim company DSTLD, ACE Studios, Bailey 44, and Harper & Jones. The company stresses a “digital-first” strategy. This means that DBG brands focus almost exclusively on e-commerce, although their clothes can also be found in other stores. By focusing on online sales, the company tries to create a customer experience that can be customized and tailored to an individual shopper. DBG saw just north of $3 million in revenue in the most recent fiscal year. The company’s debt and greater financial situation are two large areas of concern – DBG saw their short term debt grow to $8.4 million (up 41%) and had an overall net loss of $5.6 million in the most recent fiscal year.

The total revenue from the apparel market amounts to $255 billion dollars in 2020. This is set to grow annually by 10.2%. Perhaps more notable to DBG, revenue from specifically e-commerce in the apparel market has skyrocketed — and it is projected to continue to do so. Total revenue was just over $77 billion in 2017, but has grown to $110 billion in 2020 and will only continue to exponentially grow as the COVID-19 pandemic alters the way consumers buy products.

Next Section: Price


DBG’s current raise has no valuation cap, which thereby provides very little protection for potential investors. For reference, DBG’s valuation during its most recent previous round of funding was $52.8 million. The company is currently planning for its IPO, which does include a 30% discount for investors. However, the lack of a valuation results in DBG’s price score being very weak.

Next Section: Market


Given DBG’s desire to grow their specifically digitally focused apparel lines, it would be fair to assess them within the market of e-commerce apparel sales. The U.S apparel, footwear, and accessories e-commerce revenue was $110 billion in 2020 and is set to grow to $153 billion by 2024. 

With the pandemic continuing to alter the way people buy goods, the e-commerce apparel industry could quickly begin to rival the normal retail apparel market. Black Friday traffic saw a 52.1% decrease in in-store shopping, compared to a 21.6% increase in online spending. Because DBG is focused on acquiring pre-built fashion brands and tailoring their model to an e-commerce form, the company can be slightly less concerned with competition than other startups. Also, DBG has successfully executed this model with multiple brands already. Thus, DBG’s market score is very high. 

Next Section: Team


DBG’s executive leadership team is led by CEO Hil Davis. Davis has a long history in the apparel business, founding luxury men’s brand J. Hilburn in 2007. Davis successfully built J. Hilburn into a multimillion-dollar company. He recently founded e-commerce beauty and charitable organization, Beautykind – giving him first-hand experience with leading a company focusing on e-commerce.

Davis is joined by Chief Marketing Officer Laura Dowling. Dowling has a proven track record in the field of marketing, previously holding strategic positions at Harry Winston and Ralph Lauren. Her experience in apparel marketing at large companies makes her a great asset for DBG.

Rounding out the team is CFO Reid Yeoman, who comes to DBG with prior experience in leading financial teams at both Hurley and Nike.

While DBG’s team certainly brings strong industry experience, there is a distinct lack of technical expertise. Additionally, although Davis brings entrepreneurial know-how, he has yet to have a successful exit. Bringing all of this together, DBG’s team score is middle-of-the-road.

Next Section: Differentiators


At DBG’s own admission, their overall strategy is no different than that of the biggest holding companies. This may be true at a macro scale, but the difference is that DBG started out with a wholly digital-first mindset.

Older companies have been forced to adapt to the changes in consumer patterns. However, DBG has and will continue to build a portfolio of companies that focus entirely on e-commerce. This allows the company and the brand to market their products directly to  consumers online, as opposed to paying extra for a physical store – saving money and avoiding wholesale markup. Thus, the differentiators score for DBG is strong.

Next Section: Performance


DBG’s performance, on the surface, looks promising. They have four brands already as a part of their portfolio and allege that four more are on the way. It isn’t until you delve deeper into the financials of DBG where the story looks vastly different.

The company’s debt rose 41% in the most recent fiscal year – ballooning up to $8.4 million. Its yearly revenue sat just north of $3 million ($3.03M), down 20% from the previous year ($3.77M). Overall, DBG operated at a $5.6 million net loss. This debt may be part of the reason the company is pursuing an IPO — beyond further crowdfunding campaigns, an IPO could be a good way to raise a significant amount of money in a short period of time. 

However, even with these debts, DBG has still brought in substantial revenue. If the company succeeds in bringing in four more brands to the portfolio and maintains strong sales across all brands, there’s no reason to think that DBG won’t reach profitability. Therefore, DBG’s performance score is near perfect — as well as its strongest across all five metrics.

Next Section: Other

Bearish Outlook

From a financial perspective, DBG looks like a company on the wrong track. Debt rising and revenue falling is a recipe for disaster. On top of that, their CEO’s first company (J. Hilburn) filed for bankruptcy earlier in the year due to COVID-19 – a worrying sign for a company in the same industry. If the pandemic drags on, consumers will have less and less money to spend on the luxury apparel that DBG brands sell – pushing them further and further into the red on their financial sheet. Another concern is whether the company will be able to successfully market new brands and new items in the coming months. An effective marketing campaign will be necessary for DBG to increase its market share. But marketing is notoriously expensive and predicting the effectiveness of a campaign is nigh impossible. DBG will need to handle its operations and marketing carefully in the near future in order to stay on solid footing.

Next Section: Bullish Outlook

Bullish Outlook

DBG already has four brands under its umbrella – with four more on the way and plans to grow to double digits.If its early successes are any indication, DBG is on a strong path. Its executive team has long standing experience in apparel, marketing, and finance, which is certainly an encouraging sign for investors. The CEO knows how to grow an apparel business, the Chief of Marketing knows how to appeal to customers, and the Chief Financial Officer has a history with running balance sheets at large corporations. This gives DBG all the behind-the-scenes tools needed to grow into a successful business. Additionally, this round is ostensibly investors’ last change to buy in before the company goes public. That’s a big opportunity for early investors to have.

Next Section: Executive Summary

Executive Summary

If DBG can stay afloat for long enough to continue acquiring companies and growing their portfolio — and the COVID-19 pandemic slowly begins to fade into memory — it very well may be on the way to be a successful business.

However, the company’s balance sheet is not something to inspire hope in investors. The pandemic has caused a slowdown in production, and revenue is down as a product. Debt continues to rise, and while revenue is flat or negative, this number will only continue to grow. DBG also has marketing costs on the horizon that have no guarantee of attracting new customers, and a pricey IPO process ongoing that is in no way guaranteed to get them listed on the NYSE or NASDAQ. 

The Kingscrowd investment team has given Digital Brands Group a Neutral rating.

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to 

Analysis written by Ethan Thomas.

Founders: enhance your startup's credibility on KingsCrowd. Create an account to claim this raise page.
Add to portfolio
Digital Brands Group on Wefunder
Platform: Wefunder
Security Type: Convertible Note
Valuation: $52,841,157

Follow company

Follow Digital Brands Group on Wefunder

Buy Digital Brands Group's Deal Report

Warning: according to the close date for this deal, Digital Brands Group may no longer be accepting investments.

Digital Brands Group Deal Report

Get KingsCrowd’s comprehensive report on Digital Brands Group including:

  • How our proprietary algorithm rates their current capital raise (1-5 stars)
  • Detailed price, market, team, differentiators, performance, and risk ratings
  • Whether Digital Brands Group is undervalued or overvalued
  • Scores on the founding team and key personnel's background and expertise
  • Our deep-dive analyst report reviewing the deal's investment potential and bullish vs. bearish outlook

Buy the Digital Brands Group deal report for only $10!

Email address:
Looking to buy more than one deal report? Get unlimited reports by upgrading to Edge