# Material Exchange Ventures

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/material-exchange-ventures

- Industry: Internet
- Headquarters: Stockholm, Sweden
- Website: www.material-exchange.com
- Total disclosed funding: $29M
- Latest round: Series A (Apr 12, 2022)
- Investors on record: 6

## About

Material Exchange Ventures AB is a digital sourcing platform that enhances procurement efficiency within the fashion industry by connecting brands, designers, and suppliers through advanced technology and AI-driven solutions.Founded in 2017 in Stockholm, Sweden, Material Exchange Ventures AB specializes in digital sourcing for the fashion sector. The company was established by Andy Polk, Dóra Lality, John Preus, and Russell Glenister. As of April 12, 2022, Material Exchange raised EUR 25 million in a Series A funding round led by Molten Ventures, bringing the total amount raised to EUR 25 million across five deals.Material Exchange specializes in providing a comprehensive digital sourcing platform designed to streamline the procurement process within the fashion industry. At the core of its offerings is Frank, an AI-powered sourcing assistant that aids users in identifying suitable materials, accessing crucial data, and establishing connections with suppliers—all consolidated in a single interface. This service is tailored for brands, designers, and manufacturers looking to enhance their sourcing efficiency and make informed decisions on material selection. The platform serves a diverse clientele across various geographical markets, including Europe, North America, and Asia, addressing the needs of both established fashion houses and emerging brands seeking innovative solutions to source high-quality materials sustainably and efficiently.In the most recent year, 2022, Material Exchange reported a revenue of EUR 185,345.30, with an EBITDA of EUR -6,248,393.60. The company generates revenue primarily through a subscription-based model, which provides users access to the Frank sourcing platform. Clients, including fashion brands and suppliers, engage in transactions facilitated by the platform, which allows for streamlined communication and material procurement processes. The subscription structure offers different tiers based on user needs, ensuring that clients gain access to relevant features tailored to their business scale. Additionally, the company may form partnerships with suppliers, enhancing its marketplace by allowing these partners to list their materials, thereby fostering a collaborative environment. The pricing plans are designed to cater to the diverse needs of the fashion industry, reflecting the value of the services offered through the platform.Material Exchange Ventures AB plans to utilize the EUR 25 million raised in its Series A funding round to advance its operations and support more brands and suppliers in the apparel industry. The company is actively designing new products to enhance its platform and aims to expand into additional geographic markets. Specific target regions include North America and Asia, with plans to initiate these expansions by 2023. The funding will play a crucial role in facilitating these initiatives, allowing the company to enhance its service offerings and reach a broader audience in the fashion sector.

## Funding rounds

- Series A, Apr 12, 2022, $27M — Molten Ventures, Partech Partners, Inventure, Day One Capital, Norrsken VC, Lyra Ventures
- Seed, Nov 19, 2019, $2M — Inventure

## Investors

- Inventure (https://capitalatlas.ai/funds/inventure) — Seed, Series A
- Molten Ventures (https://capitalatlas.ai/funds/molten-ventures) — Series A
- Partech Partners (https://capitalatlas.ai/funds/partech-partners) — Series A
- Day One Capital (https://capitalatlas.ai/funds/day-one-capital) — Series A
- Norrsken VC (https://capitalatlas.ai/funds/norrsken-vc) — Series A
- Lyra Ventures (https://capitalatlas.ai/funds/lyra-ventures) — Series A