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In Fashion: Next Generation Control Freaks With a Dream
Leaders of next-generation brands are seeking ways to grow while still retaining control over their companies. Managing Partner Matt Katz shared insights with WWD in “In Fashion: Next Generation Control Freaks With a Dream.” This article looks at how leaders of companies like Warby Parker, Rent The Runway, and Allbirds are using dual-class structures to protect the vision they have for their organizations.
Matt explains why dual structured IPOs emerged, “The thought there was to protect the IP of the visionary, to ensure that the visionary of Snap or Facebook or Uber or whoever would be protected and would want to stay in that business.”
Dual structures like the ones in place at Warby Parker, Rent The Runway, and Allbirds are often used to protect the vision of the founders Matt says, “These executives or entrepreneurs who have built these businesses have made their fortunes selling the dream. They sell the dream to the venture monies, they sell the dream to the Series B, they sell the dream to private equity, they sell the dream to employees.”
Read the full article here.