03/21/19

The Long Teeth of VC Backed Firms

Today, dear readers, we speak of Rent The Runway as an exemplar for changing conditions in the world of financing and venture capital. Today RTR announced they had closed a $125,000,000 VC round led by Franklin Templeton Investments and Bain Capital Ventures.

This brings the total of VC funding (they also have $200,000,000 in debt) to $337,000,000 based on a valuation of $1,000,000,000.

Wow! RTR has come a long way since its 2009 funding by Bain of $1,800,000.

RTR has been working for ten years to become an overnight success. Some whisper RTR is being groomed for an Initial Public Offering, something they spoke of in the past, but not recently.

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08/3/18

Pricing Strategy – Rent the Runway

Pricing strategy, Rent the Runway, Big Red Car? Huh?

Full disclosure: The Big Red Car has never rented a dress from Rent the Runway, but the Big Red Car has always been intrigued by RTR’s pricing strategy.

Oh, my goodness, Big Red Car!

WASHINGTON, DC - NOVEMBER 24: Jenn Hyman, Christian Siriano and Jenny Fleiss attends the Rent the Runway DC store Opening at Rent The Runway on November 24, 2014 in Washington, DC. (Photo by Kris Connor/Getty Images for Rent The Runway)

Jennifer Hyman and Jennifer Fleiss – co-founders of Rent the Runway – at their 24 November 2014 opening in Washington, DC (Kris Connor/Getty)

So, it’s a beautiful warm Austin day and we live in the greatest city, in the greatest state, in the greatest country in the world! Ahhh, on Earth as it is in Texas!

So, the Big Red Car has always been a fan of a smart pricing strategy. I think one of the smartest guys out there is a chap named Patrick Campbell of Price Intelligently by Profitwell.

Here is their website: Price Intelligently.

Pricing strategy is a way for a company to obtain a better source and magnitude of revenue by being smart. You should be reading that Price Intelligently blog.

As a bonus, here is the Price Intelligently “Tear Down” on the Rent the Runway pricing model. Read it here.

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