According to press reports, Burda Digital Ventures has invested a further $250,000 in the Canadian online custom tailored suit company Indochino:
"Their business model cuts out the factories and the middlemen. The tailors get a fair salary and the consumer gets a fair price -- and it creates a new supply chain for this type of business."
The Times Colonist (Victoria) article covers the background and ambitions of German media company Burda in Canada:
"Kyle Vucko and Heikal Gani, business students at the University of Victoria and founders of Indochino -- a web-based tailoring business that provides made-to-measure suits, shirts and outerwear at cut-rate prices -- got a $250,000 shot in the arm from Burda Digital Ventures, the venture capital arm of one of Germany's largest media companies.
The latest investment follows a $40,000 funding last year from Burda that helped Vucko and Gani launch the business and establish a toehold in Shanghai's famed garment district.
Their connection with the German media giant has Victoria roots, as Burda is majority owner of virtual book marketer Abebooks.com, purchasing the company from local founders in 2003.
Boris Wertz, former chief operating officer at Abebooks, leads Burda's Canadian investment arm and, with Abebooks CEO Hannes Blum and chief financial officer John Chase, took an early interest in Indochino and acted as mentors for the young entrepreneurs.
Well-known high-tech entrepreneur Eric Jordan, UVic's executive-in- residence, was also instrumental in guiding the founders of Indochino."
Co-Founder Kyle Vucko comments in the StartupNorth blog:
"We made a decision early to ‘Go Big’ with this company. We got successful angels in the etailing space (CEO/COO/CFO of AbeBooks), and got a first round of financing before incorporating the company back in March of last year.”
More in the press release and in the investor blog from Boris Wertz.
Burda is currently restructuring its investment activities. A large part of Burda Digital Ventures will in the future be held by investment management company Acton Capital Partners.
Originally posted in German by Jochen Krisch, translated by Jason Soo.
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