Venture Capital Invests Over $620M in Fashion Tech Startups in Q1 2026
In the first quarter of 2026, fashion-adjacent startups secured over $620 million across 15 deals, highlighting a trend where investors see these companies as technology ventures. Notable funding includes Quince's $500 million Series E round and Phia's $35 million Series A. Investors like Andreessen Horowitz and BlackRock are increasingly involved in fashion tech, reflecting a shift in valuation metrics towards technology-driven solutions for industry inefficiencies. The AI-generated fashion market is projected to grow from $2.14 billion in 2024 to $75.9 billion by 2035.
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In Q1 2026, fashion-adjacent startups raised over $620 million, with Quince leading at $500 million in Series E funding. Phia secured $35 million in Series A, while Croissant raised $28 million for second-hand fashion payments.
UK-based Epoch Biodesign attracted $12 million for recycling technology. Investments from firms like Andreessen Horowitz and BlackRock signal a trend of viewing fashion companies as tech entities. The annual funding for AI-fashion startups has remained around $100 million since 2022, with projections valuing the AI fashion market at $75.9 billion by 2035.
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