From novel materials and new textile recycling methods to sneakers linked to NFTs these are some of the early-stage fashion startups that are capturing investors' attention.
The fashion industry has been through intense technological changes in recent years, from social media changing buying patterns, to new AI design tools and the introduction of novel materials to improve sustainability. A huge number of startups has emerged to offer solutions from the circular economy to sneakers linked to NFTs.
This is an area where corporate venture units have made a fairly limited number of investments, however, although some companies do have collaboration or supplier agreements with up-and-coming fashion technology startups.
Here are 15 early-stage startups that investors should be keeping their eye on.
Raspberry.AI
- New York, US
- Founded: 2022
- Funding to date: $28.5m
Raspberry AI offers an AI-powered design assistant to help fashion creatives bring their visions to life. The platform offers tools like sketch-to-render conversion, easy print generation and AI-driven lifestyle photography – all aimed at helping designers to visualise and iterate on their concepts efficiently.
The startup’s design features allow users to simulate different fabrics, textures and colour palettes, thereby reducing the need for physical samples, cutting down on waste and accelerating the design process. The AI tool also has the ability to produce realistic images from simple sketches, further streamlining the workflow and creative process.
Treet
- San Francisco, US
- Founded: 2021
- Funding to date: $16.4m
Treet is a branded resale platform that helps fashion brands launch their own resale marketplaces.
The platform holds space for peer-to-peer sales, trade-ins and rerouted returns, thereby helping brands extend the lifecycle of their products, reduce waste and engage with consumers focused on sustainability. Treet’s customisable solutions are touted to merge smoothly with existing ecommerce systems – offering brands a new revenue stream while promoting circular fashion. The startup’s innovative approach has attracted partnerships with several direct to consumer brands, though specific details have not been publicly announced.
Laws of Motion
- New York, US
- Founded: 2017
- Funding to date: $10.2m
For those looking for precisely fitted clothing irrespective of body type, Laws of Motion has the solution for you. Their AI-driven technology uses the results from a fit quiz or body scan each customer is asked to take and runs it against customer data points to recommend sizes that are aimed at minimising returns and enhancing customer satisfaction.
This approach not only improves the shopping experience – especially for those seeking shape-inclusive options – but also reduces the fashion industry’s return-related waste.
Daydream
- San Francisco, US
- Founded: 2023
- Funding to date: $50m
Daydream is an AI-powered fashion search platform founded by Julie Bornstein, a veteran in the retail and ecommerce space. The focus of the team behind Daydream has been to leverage generative AI, machine learning and computer vision to create a platform that cuts through a sea of disjointed results to help users discover fashion items through natural language prompts, making the online shopping experience a seamless one.
Daydream’s seed funding round in 2024 saw significant investor interest, including an investment from Alphabet.
Endstate
- West Roxbury, US
- Founded: 2021
- Funding till date: $5.5m
Combining physical products with digital assets, Endstate has created an entirely new way to own sneakers by linking them to NFTs. This fusion allows for authenticated ownership, exclusive digital experiences and a bridge between the physical and virtual worlds. Co-founded by Stephanie Howard, former design director at Nike and New Balance, and Bennett Collen, former founder and CEO of NFT firm Cognate, Endstate’s proprietary technology has caught the attention of global brands, athletes and cultural institutions. Endstate’s most recent seed funding round saw involvement of prominent investors from the crypto and fashion sectors. The funding supports the company’s mission to redefine how consumers interact with products in both tangible and digital realms.
Space Runners
- Houston, US
- Founded: 2021
- Funding till date: $10m
A fashion tech startup positioned at the intersection of digital fashion and the metaverse, Space Runners collaborates with artists and brands to create digital wearables, giving users the ability to express themselves in virtual environments.
The startup integrates blockchain technology to ensure authenticity and ownership of digital fashion items, catering to the growing demand for customised digital identities. Space Runners has seen funding interest from VC firms such as Accel and Core Ventures.
Faircraft
- Paris, France
- Founded: 2021
- Funding till date: $20.1m
Faircraft is pioneering lab-grown leather using cellular agriculture by producing a whole new class of materials that mimic the properties of traditional leather without the involvement of any animals. Their process involves cultivating cells and proteins to create sustainable and customisable materials with a lower environmental footprint. Faircraft’s innovation addresses ethical concerns and offers a scalable alternative to conventional leather production.
Uncaged Innovation
- White Plains, US
- Founded: 2020
- Funding till date: $7.9m
This one’s another startup that’s working on developing sustainable, next-generation materials to replace traditional animal-derived products in fashion, i.e., leather. Uncaged Innovations makes use of plant-based and bioengineered components to produce materials that mimic the properties of leather without the corresponding environmental or ethical concerns.
Scaling such innovations can be challenging due to high production costs and the need for significant pilot runs. However, Uncaged Innovations gained backing from InMotion Ventures, the CVC arm of Jaguar Land Rover, in its last past two funding rounds, signifying corporate investor interest.
Ambercycle
- Los Angeles, US
- Founded: 2015
- Funding till date: $38.1m
Ambercycle is looking to tackle textile waste by converting garments at the end of their lives into regenerated polyester through its molecular regeneration technology. The company’s trademarked product, cycora®, offers a sustainable alternative to virgin polyester, maintaining quality and performance.
Danish fashion brand Ganni confirmed a four-year agreement in January 2025 to incorporate cycora® into its collections with the aim of reducing its annual polyester use by 20%. Fashion corporates like the H&M Group and Inditex have ongoing investments and partnerships with the startup, underscoring its role in advancing circular fashion,
BioFluff
- Paris, France
- Founded: 2022
- Funding till date: $3.2m
Another startup focused on sustainable fashion, BioFluff’s innovative plant-based fur alternative Savian has been developed using natural fibres such as nettle, hemp and flax to offer a luxurious texture similar to animal fur without the corresponding ethical and environmental factors.
Unlike traditional faux furs, BioFluff’s products are plastic-free, biodegradable and produced through an eco-friendly, enzyme-based process that transforms agricultural waste into high-quality textiles. The startup’s plant-based fur also reduces greenhouse gas emissions by nearly 90% as compared to traditional fur production.
BioFluff’s commitment to sustainability and innovation has led to collaborations with Stella McCartney and Danish label Ganni in their fashion collections.
Veeton
- Paris, France
- Founded: 2023
- Funding till date: €2m
Veeton is a fashion tech startup focused on improving the online shopping experience through virtual try-on solutions. Established in 2023 by alumni of École Polytechnique and HEC Paris, it allows brands and customers to generate high-quality, on-model images from simple flat garment photos, thereby eliminating the need for traditional photoshoots and reducing costs and time-to-market.
The startup leverages augmented reality and AI to offer users precise control over various image attributes, including lighting, texture and pose. As a result, brands are able to produce photorealistic visuals that maintain brand authenticity and cater to diverse body types, promoting inclusivity in fashion representation. Notable collaborations include partnerships with Microsoft, bpiFrance and Carrefour, highlighting the platform’s versatility across various market segments.
Ayna
- Bengaluru, India
- Founded: 2023
- Funding till date: $1.5m
Ayna offers AI-generated photoshoots for fashion brands, allowing for the creation of high-quality product images without traditional photography. Brands can generate marketplace-ready images with perfect shadows and lighting using a single picture, significantly cutting down on production time and costs. Ayna’s proprietary technology allows for the generation of customisable virtual models, providing options across various ethnicities, body types and features. Brands like Lee, Wrangler, Reliance Retail’s Clovia, The Indian Garage Company have made use of Ayna’s services, reporting faster delivery and increased click-through rates.
Iambic
- New York, US
- Founded: 2020
- Funding till date: $1.3m
Iambic is redefining footwear with its AI-tailored, custom-fit shoes. The startup was founded by Maeve Wang (pictured, left) to address the common issue of ill-fitting footwear – something she personally experienced after returning over 300 pairs of shoes within three years due to discomfort and poor fit. Initially conceived as a B2B software solution aimed at improving shoe sizing tools, Iambic pivoted upon realising that the main challenge lay in the fundamental design and manufacturing processes of footwear.
This led to the development of their flagship model, the Model T, that uses smartphone-based foot scanning to create precisely fitted shoes crafted from premium materials. The startup’s commitment to personalisation and quality has it recognition, including being names a TIME Best Invention.
Retraced
- Düsseldorf, Germany
- Founded: 2019
- Funding till date: €22.7M
Retraced was designed to digitise and trace fashion supply chain data to aid brands in ESG management. The startup enables real-time collaboration with suppliers, helping companies ensure compliance with sustainability standards and regulations.
The platform offers tools for product and material traceability, allowing brands to visualise their supply chains and assess social and environmental risks. Retraced’s solutions are presently utilised by fashion brands such as Tom Tailor, Desigual and Victoria’s Secret to enhance transparency and accountability in their operations.
MUD Jeans
- Laren, The Netherlands
- Founded: 2012
- Funding till date: Undisclosed
Standing for circular denim fashion, Mud Jeans offers a unique leasing model that allows customers to rent jeans and return them for recycling. Their unique recycling process involves shredding worn-out jeans into fibres and blending them with fresh organic cotton to create new yarns. This method ensures that each old pair gets recycled into a new pair of jeans, significantly reducing waste and resource consumption.
Mud Jeans also offers customers the option to lease jeans for a monthly fee, promoting product longevity and responsible consumption. Post the lease period, customers can choose to keep, swap or return the jeans for recycling, fostering a closed-loop system that aligns with circular economy principles.
