ThredUp Raises $23 Million, Making It the Best-Funded Online Consignment Startup in the U.S.

Online consignment stores have been getting a lot of attention from investors lately.
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Lauren Indvik
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Online consignment stores have been getting a lot of attention from investors lately.
Photo: ThredUp

Photo: ThredUp

Venture capitalists are continuing to pour money into online consignment startups. Earlier this month, Threadflip picked up $13 million in a Series B funding round, and now rival ThredUp has raised a Series D -- for an impressive $23 million -- according to a recent SEC filing (hat tip: TechCrunch).

Like rivals Vaunte and Poshmark -- and its much larger predecessor, Ebay -- ThredUp invites people to consign lightly used clothes and accessories, and shop others' for a deep discount. Unlike most of its rivals, however, all consignment goods are shipped to ThredUp's headquarters, where they are vetted for quality, photographed and then listed. (Most other sites simply encourage sellers to photograph their goods from their closets and list them themselves, which can result in a poor -- and certainly less uniform -- browsing and purchasing experience.)

ThredUp takes a 20 percent cut of every sale. If you consider that Ebay takes a 10 percent cut, it's a pretty good deal for all that service, though it's also worth pointing out that ThredUp tends to list items for considerably less than Ebay users do: A silk J.Crew blouse that typically goes for $35-$40 on Ebay, for example, is listed for $13 on ThredUp. (I know because I shop these obsessively.)

There's also more of a focus on mid-priced and mass-market brands, including kids' brands, than high-end designers labels. On the front page of the site, there are call-outs to shop J.Crew, Gap Baby and Marc by Marc Jacobs -- not Gucci and Prada.

We don't yet know what ThredUp will do with the funds -- the company did not respond to our request for more information, possibly because the head of communications is out the office for her wedding -- but we do know that with $46 million in total funding, ThredUp is now the best-funded startup in the online consignment space. Twice has raised $23 million to date, Threadflip $21 million, Poshmark $16 million and Vaunte $2.2 million.