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Marketplace for ethical and emerging fashion

IVALO is a marketplace for ethical and emerging fashion with 348 brands from 17 countries. IVALO has no stock in its marketplace platform and it takes a 20% commission on sales. Products are sent directly to the customer from the fashion brands' warehouse. In 2018, IVALO has doubled its sales quarterly through effective marketing tests and proved good sales conversions. IVALO has made sales in 22 different countries.

In 2019, IVALO focuses on marketing operations and rapid revenue growth.
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Investor proposal

Ethical fashion is already over a billion dollar market in which online sales are growing 29.5% annually. IVALO is operating in this fastest growing segment of fashion with very little competition. IVALO has all the possibilities to be the global market leader in the next five years. IVALO has already many professional business angels onboard, including: Peter Vesterbacka, Pekka Mattila, Jaakko Kankaanpää, Jaakko Rauramo, Edvard Paulig and many other experienced investors.

There are risks investing in IVALO but also huge and positive expected valuation.

Product

The problem this product solves

IVALO has a simple solution to a global problem: IVALO makes it possible for the customer to find and purchase interesting products from hundreds of ethical and emerging fashion brands in one marketplace. At the moment, it’s almost impossible for a customer to find new, emerging and captivating brands who also have strong ethical values.

The ethical fashion online sales are growing 29.5% annually. Ethical fashion is already a 1.2 billion dollar market. At the same time, there are thousands of high-quality, ethical and emerging fashion brands, but these brands are lacking an easy way to reach customers.

How the product solves it

IVALO is a marketplace platform connecting customers with emerging ethically manufacturing fashion brands, without owning any stock. IVALO is a place to get inspired and experience emerging fashion brands with ethical values. IVALO’s content is carefully curated and its brands are rarely sold on large e-commerce sites.

Fashion brands add products through IVALO’s online-system and customers can buy items from 348 brands from 17 different countries. IVALO charges 20% commission and fashion brands handle the logistics. IVALO’s technology is automated and brands manage tasks independently.

IVALO’s goal is to become the world’s largest ethical and emerging fashion marketplace by 2023.

Product features

IVALO is a platform that helps brands to reach customers and sell their products. IVALO is a marketplace without a warehouse making it possible to take in thousands of fashion brands.

The marketplace technology is built in-house and IVALO owns the data and IP rights. The platform is built for global scaling. Brands control sales independently through IVALO’s automated system.

In 2017, IVALO was selected in Finland as the best solution for small businesses (GrandOne 2017).

In 2019, IVALO is concentrating on brands’ production and delivery practices on ethical transparency. IVALO also develops machine learning for product recommendation to customers.

Product use cases

The idea of IVALO’s operation is simple: it connects customers directly with hundreds of ethical and emerging fashion brands. Similar global service doesn’t exist in the market and there is a clear demand for it. IVALO has developed an innovative and automated marketplace. In the future, IVALO will offer fashion brands additional services like analytics, PR and marketing services and influencer collaboration to give fashion brands even more added value for being part of IVALO community.

Team

Matti Lamminsalo avatar
Matti Lamminsalo CEO & Co-Founder
Matti was born to be an entrepreneur. After several years of intensive studying of poker, Matti became a professional poker player at the age of 18 and funded his first company (poker consulting) at the age of 20. Three years later the company had several hundreds of thousands of revenue ... See more
Matti was born to be an entrepreneur. After several years of intensive studying of poker, Matti became a professional poker player at the age of 18 and funded his first company (poker consulting) at the age of 20. Three years later the company had several hundreds of thousands of revenue and by the age of 23, Matti made his first EXIT. After that, he has been involved in several companies as a co-founder, advisor and investor. Matti has strong leadership skills and the spirit to get everyone involved and excited. Motto: “Go big or go home” See less
Ida Nyrhinen avatar
Ida Nyrhinen Brand Manager
Among the designers, Ida is called “The Brand Mama”. She is responsible for the welfare of IVALO’s designers and the whole product catalogue. During fashion weeks Ida roams through trade shows looking for new designer talents while trend forecasting the future must-haves. On a daily basis, she takes care of ... See more
Among the designers, Ida is called “The Brand Mama”. She is responsible for the welfare of IVALO’s designers and the whole product catalogue. During fashion weeks Ida roams through trade shows looking for new designer talents while trend forecasting the future must-haves. On a daily basis, she takes care of the product inventory and keeps the designers up to date. Dialogue with the designers and really listening to the designers' needs and thoughts is really an important part of IVALO’s operation. See less
Patrik Keinonen avatar
Patrik Keinonen Chief Technological Officer
"Building beautiful software is more than meeting the requirements". Patrik started programming before puberty and has ever since been developing his skills towards perfection and acquiring diverse knowledge in software development. Starting as an in-house developer, transforming into consultant, he has now, as the CTO of IVALO, taken the mission ... See more
"Building beautiful software is more than meeting the requirements". Patrik started programming before puberty and has ever since been developing his skills towards perfection and acquiring diverse knowledge in software development. Starting as an in-house developer, transforming into consultant, he has now, as the CTO of IVALO, taken the mission to take IVALO’s platform to the next level and beyond. With the very few resources startups usually have available, it requires creativity, agility and commitment to succeed. There is no question whether Patrik and his team will deliver. See less
Ville Laukkanen avatar
Ville Laukkanen Ecommerce Manager
Ville is responsible for ivalo.com webshop’s contents and improvements as he manages its planning and strategy. Conversion rate optimization, analytics and reporting are the key elements in his work. Ville is able to combine data and analytics with marketing and psychology to optimize the conversion rate of the webshop.
Lauri Lännenmäki avatar
Lauri Lännenmäki UI/UX Designer/Developer & Co-Founder
Creative mind focused on user interface and user experience design. Ability to design and develop every part of the process. With great people skills, Lauri’s tasks also include operative work in the form of daily meetings and encouraging people to push themselves. Lauri’s meticulous and precise work ethic is also ... See more
Creative mind focused on user interface and user experience design. Ability to design and develop every part of the process. With great people skills, Lauri’s tasks also include operative work in the form of daily meetings and encouraging people to push themselves. Lauri’s meticulous and precise work ethic is also a great asset in administrative work. See less
Antti Seppälä avatar
Antti Seppälä Partner, Influencer and Brand Onboarding & Co-Founder
A true multitalent in charge of perfecting the IVALO Ambassador program and the acquisition of Instagram influencers. Antti has strong experience in various areas of sales in online services and media. He also has great experience in creating, developing and managing sales funnels and reaching goals while executing difficult tasks.
Eero Böök avatar
Eero Böök Creative Director
Eero is in charge of IVALO’s visual identity and brand image. His work is focused on marketing activities such as campaigns, creating the right tone of voice and analysing the effectiveness of various marketing communications. He also curates IVALO’s brand and product portfolio as he has an experienced eye for ... See more
Eero is in charge of IVALO’s visual identity and brand image. His work is focused on marketing activities such as campaigns, creating the right tone of voice and analysing the effectiveness of various marketing communications. He also curates IVALO’s brand and product portfolio as he has an experienced eye for details, materials and design work. Eero has a long career history in fashion retail which gives him the ability to forecast consumer behaviour. He is constantly undertaking competitor research to identify and react to threats and gaps in the market. See less
Jani Lindqvist avatar
Jani Lindqvist Senior Backend Developer
“Any fool can write code that a computer can understand. Good programmers write code that humans can understand.” this quote by Martin Fowler is something Jani is quite familiar with. From the early Commodore 64 coding of his childhood to low-level coding and designing CPU/GPUs with assembler and VHDL in ... See more
“Any fool can write code that a computer can understand. Good programmers write code that humans can understand.” this quote by Martin Fowler is something Jani is quite familiar with. From the early Commodore 64 coding of his childhood to low-level coding and designing CPU/GPUs with assembler and VHDL in Helsinki University of Technology, swooping to the IT consultancy when dot-com bubble was growing. As a cloud architect, Jani has the responsibility to make sure IVALO’s backend is designed to enable it running highly scalable and robust without any interruption to the service. With over 20 years of experience in the industry and working with major companies in the finance and telecommunication sectors has taught Jani that if things go nasty, high pressure and heat makes us diamonds. There is no perfect system as it would take an indefinite amount of time to develop. Design it well and make sure code is readable (see the quote) and critical deficiencies can be quickly fixed with minimal impact on service quality. See less
Minna Kurunsaari avatar
Minna Kurunsaari Chairman of the Board & Advisor
20 years of experience in core business management positions at Kesko Group. Responsibilities included building and developing multi-channel customer experience based on customer information in all of Keskos industries and companies. She served in Kesko Food as the director of both the Tavarakauppa and the K-supermarket chain. In addition, she ... See more
20 years of experience in core business management positions at Kesko Group. Responsibilities included building and developing multi-channel customer experience based on customer information in all of Keskos industries and companies. She served in Kesko Food as the director of both the Tavarakauppa and the K-supermarket chain. In addition, she was a member of the board of directors in 14 different companies, such as Intersport, Indoor Group, Musta Pörssi and Kenkä Kesko, Rauta Kesko, K-citymarket and Anttila. Member of the Verkkokauppa.com Board of Directors in 2015-2018. She currently serves as a Deputy Managing Director of Teiskonen Group and is responsible for strategic planning and board work. See less
Jaakko Kankaanpää avatar
Jaakko Kankaanpää Board Member & Advisor
Jaakko Kankaanpää has over 20 years of experience in the fields of digital business development and digitalisation. He currently works as the senior business advisor and Board member of Ambientia focusing on business design, strategy development and new business creation. As a passionate entrepreneur, digital evangelist and business angel Jaakko ... See more
Jaakko Kankaanpää has over 20 years of experience in the fields of digital business development and digitalisation. He currently works as the senior business advisor and Board member of Ambientia focusing on business design, strategy development and new business creation. As a passionate entrepreneur, digital evangelist and business angel Jaakko has founded and/or advised a number of startup companies including Netrauta Finland, Klevu and IVALO. See less
Peter Vesterbacka avatar
Peter Vesterbacka Advisor
Peter Vesterbacka is a mobile game developer and the Co-Founder & Brand Manager of Lightneer. He’s also the Co-Founder of Fun Academy and the former Mighty Eagle at Angry Birds.

Market

Target Market

Ethical fashion is one of the fastest growing segments with 29.5% annual growth on online sales (current market value 1.2 billion dollars). Ethical fashion represents 1% of the fashion’s 1300 billion dollar market, growing only 1,3% yearly. The global fashion market is at a turning point as consumer habits are changing towards longer-lasting, ethical fashion.

IVALO’s main goal in 2019 is to gain a stable market position in Finland (min.100,000€/monthly sales), as well as to reach fast global scaling on international sales. At first, IVALO is targeting European countries. IVALO is also researching business opportunities in China with Peter Vesterbacka.

Competitive landscape

There are thousands of online fashion stores in the world, which basically all sell the same big fashion brands. The demand for ethical and emerging fashion is growing fast.

In addition to IVALO, there are three (Garmentory, Wolf&Badger, Tictail) international marketplaces, which concentrate only on emerging fashion without the ethical angle. In Finland, there is one company (Weecos), which has a wide product scope selling also furniture and cosmetics.

IVALO’s goal is to emphasize high quality, ethical and emerging fashion brands straight from the biggest fashion weeks in the world.

Unique differentiator from competitors

IVALO has an advantage in the market by focusing on the fast-growing niche market - ethical and emerging fashion. IVALO isn’t just a place to buy ethical fashion, it’s a community.

IVALO’s mainly automated marketplace makes it different from the competition by shipping the products to the customer straight from the fashion brand, while IVALO takes 20% commission.

In 2019, IVALO is bringing on elements supporting ethical viewpoint and components that makes it different, e.g.: the possibility to know the factory locations and working conditions, transparent pricing, origin and certificates of materials and product logistics.

Company revenue streams

In IVALO’s business model, financial capital is not tied to its own stock, instead it acts as a marketplace through which brands sell their product globally. IVALO’s commission for the transactions made on it’s market platform is 20% and it doesn’t own the products at any time, so IVALO avoids inventory risk. In the future, IVALO will offer fashion brands extra services including analytics, PR and marketing assistance and influencer collaboration.

Product/service distribution

Most of the operations are automated (e.g. invoicing, order confirmation, sales reports). Fashion brands have the tools to control sales inventory independently. Fashion brands add products, calculate competitive pricing and shipping costs.

IVALO brings hundreds of ethical and emerging fashion brands available to customers. At the time of purchase, products are sent directly from the brand to the customer. IVALO collaborates with about 100 influencers (pro bono) with approximately 50,000 followers on average, who advertise the products. IVALO has managed to build an ethical community of fashion brands, customers and fashion influencers, who all share the same values.

Execution

Previous milestones/traction

2016
Start of the operation
MVP ready
50 Finnish brands onboard

2017
Marketplace opened for international brands
150 brands
Winner of Grand One 2017

2018
Marketing tests and validation
Market position validation
Market ready product
348 brands from 17 different countries
Sales to 22 different countries
IVALO has validated its ready for scaling
Sales have almost doubled quarterly

Q1
Page visitors: 11.731 users
Conversion (from user to purchase): 0,65 %
Sales: 9.648€

Q2
Page visitors: 21.430 users
Conversion (from user to purchase): 1,49 %
Sales: 17.732€

Q3
Page visitors: 37.620 users
Conversion (from user to purchase): 2,20 %
Sales: 33.065€

Next key objectives

2019
Shopping cart and more payment options (January 2019)
Effective customer acquisition and revenue scaling
Cash-flow positive (Q4/19)
20% of sales from international markets (Q4/19)
Page visitors: 657.517 users
Conversion (from user to purchase): 1.4%
Sales: 966.000 €

2020
Aggressive global scaling

2021 - 2023
IVALO is the global market leader of ethical and emerging fashion
10M€ annual sales through ivalo.com
Sell of the company with 75 - 150 million valuation (=30-60x return of investment)

Previous Financing

2016
41.900 € ELY-funding
50.000 € Business Finland Tempo-project
100.000 € Private funding

2017
400.000 € Private funding
412.000 € Business Finland long-term loan

2018
200.000 € Convertible-loan

During 2016-2018, IVALO has raised funds from public and private sector for about 1.2 million euros. With the funding, IVALO has build an advanced marketplace technology and got 348 fashion brands. Year 2018 IVALO has successfully tested user acquisition and generated sales from 22 countries. IVALO has nearly doubled its sales quarterly. IVALO validated the best marketing channels and operating models and has also created a clear strategy to scale the business.

Partnerships

IVALO is co-operating with 348 international ethical and emerging fashion brands. In addition, IVALO has had fixed-term and indeterminate length partnerships with the following partners: Samsung, Elisa, Kiasma, Klaus-K, Galerie Forsblom and Superwood Festival. IVALO also had its own radio program “Kuosissa" at Radio Helsinki.

IVALO has launched the Q4/18 Influencer program with approximately 100 international and domestic influencers. Through the influencers, IVALO is able to reach almost 5 million fashion conscious people. Influencers do not receive separate compensation from IVALO, but are involved because they want to help ethical and emerging fashion brands.

Use of funds

Investment will be used for scaling the business.

250.000€ will be used for the company's employees' salaries and general expenses during 2019. 100.000€-350.000€ will be used for marketing activities to increase the revenue growth. The goal is that IVALO has a positive cash flow in Q4/19 and is ready for rapid international scaling.

In early 2019, IVALO will recruit a Digital Marketing Director who is responsible for user acquisition. The right person has been found and the recruitment process is carried out when the minimum amount of crowdfunding has been raised.

Industry Certifications/Awards

IVALO is the winner of Grand One 2017 (Best enterprise for small businesses) and has also made wide PR and media coverage:

MTV3
https://www.mtvuutiset.fi/artikkeli/ita-vantaan-lahiosta-kotimaisen-muodin-tinderin-vetajaksi-tama-28-vuotias-mies-surffaa-muotialan-aallonharjalla/6480908#gs.4O8g_WQ

Kauppalehti
https://www.kauppalehti.fi/uutiset/muotikaupasta-kajahtaa-ivalo-laajensi-suomesta-maailmalle/e3f7164b-163f-3337-8875-ce3110302c06

Taloussanomat
https://www.is.fi/taloussanomat/art-2000005128803.html

Ilta-Sanomat
https://www.is.fi/viihde/art-2000005579084.html

Markkinointi & Mainonta
https://www.marmai.fi/uutiset/ivalolla-on-kovat-piipussa-muotisovellus-tavoittelee-markkinajohtajuutta-tukulla-parannuksia-6609850

ELLE
https://www.elle.fi/muoti-kauneus/muoti/uusi-kotimainen-ivalo-sovellus-muodin-tinder/

MTV3
https://www.mtv.fi/sarja/huomenta-suomi-33001003008/kayko-eettinen-muoti-kaupaksi-1026132

Good News from Finland
http://www.goodnewsfinland.com/feature/tinder-meets-airbnb-fashion-app-ivalo/

Return on Investment

2020
IVALO will make a 3M€-6M€ follow-up investment round to enable aggressive global scaling at 7,5M€-15M€ valuation. At this point the investment has already made a 3-6x return for the investment.

2021-2023 EXIT
The main goal is to be the largest marketplace for ethical and emerging fashion with an annual turnover of 10M€ by the year 2023 and execute a 75M€-150M€ acquisition. In this situation the investors will get a 30-60x return on investment.

Environment
By investing in IVALO, you're investing in smarter consumption and better fashion future.

Risk Analysis

The highest risk is that the market window closes before IVALO has a solid global market positioning.
This means new competitors move faster into the markets than IVALO is moving forward, and scaling the marketplace globally. The risk is that ethical fashion consumption growth will stop. However, we see a really small change in this, as the trend is based on climate change, which is not going away.

Other considerable risks are in HR, business and funding. The company is prepared for these and for example it has an option-program for employees and a clear business and financial strategy.

Risk Warning

Privanet Group is a Finnish investment service group specialized in trading unlisted shares and managing companies’ financing needs. Our group includes the parent Company Privanet Group Plc, the fully owned subsidiary company Privanet Capital Markets Ltd, which focuses on capital market transactions, and its subsidiary Privanet Securities Ltd, which operates Finland’s only marketplace for trading securities of unlisted companies. Privanet is working closely with FundedByMe, the international crowdfunding platform. The entire Privanet group employs approximately 40 people. We have branches located in Helsinki, Tampere, Turku, Oulu, Jyväskylä, Vaasa, Forssa, Joensuu, Lahti, Mikkeli, Ylivieska and Kuopio. We provide a large variety of services aimed at bringing together investors and those in need of funding. http://www.privanetgroup.fi/?lang=en