Velits brothers’ Isadore Apparel raises €2.1 million in another investment round
29/03/2022
Isadore Apparel, founded by former professional cyclists Peter and Martin Velits, is a step closer to its goal of becoming a major global player after a second investment round closed in record time on the Crowdberry investment platform. Investors responded not only to the potential of the market in which the cycling apparel brand operates, but especially to the results achieved so far. Isadore ended 2021 with revenues of almost €4 million (up 36% year-on-year), increased the number of new registrations by a third, and won a prestigious Euro Effie Award for its advertising during the Tour de France.
The initial investment provided to Isadore Apparel by Crowdberry investors in March 2020 helped the company implement its sales and marketing strategy predominantly in the three Central European countries of Germany, Austria and Switzerland, the so-called DACH region. The funding kick-started the rapid growth in new customer numbers and enabled the brand to successfully establish itself on international markets in the early days of the Covid-19 pandemic. Since then, the company has doubled its sales and broadened its registered customers to 80 countries, while the Isadore Apparel brand is now represented on five continents.
The entrepreneurial success of the Velits brothers, who draw on all their experience and endeavour honed during their years on the professional cycling tour in running the company, was also supported by the fast-developing cycling industry. This was decisive for the new investment campaign. The involvement of local capital from private investors, many of whom actively support the brand as ambassadors, has helped accelerate the growth of this Slovak company internationally. The production of jerseys and cycling accessories, which are shipped all over the world, is mainly concentrated in Slovakia at the Makyta Púchov plant, which has a long manufacturing tradition.
The intention of the new investment is to strengthen the brand's position, particularly on Western European markets, and to prepare the company for the entry of a foreign investor from the industry to help it expand further overseas and into Asian markets.
“Our investors were convinced by the company’s rapid progress in less than two years, the number of new customers and the efficient use of the initial funds raised. This was reflected in a record response from investors. Within a month of launching the campaign, we had raised €2.1 million from around 125 investors, including investors from Germany and the Netherlands. Investors from the first round also took the opportunity to participate in the investment and doubled their stake in the company,” says Natália Jašková, Investment Manager at Crowdberry.
“Within a month of launching the campaign, we had raised €2.1 million from around 125 investors.”
The founders’ goal is to become one of the leading brands in the industry and to exceed annual turnover of €10 million (CZK 253 million) within two years. “We want to take Isadore to the next level as a recognisable brand in Europe. This means that every European cyclist will also consider Isadore when buying a new jersey. Beyond that stage, we believe that our values, story and, of course, the product will convince them to buy with us,” says Peter Velits, co-founder of Isadore Apparel.
"Isadore is a brand with a strong story and excellent customer feedback. It offers quality functional products with timeless design. For this company, sustainability is not just a catchphrase and its team have creativity to spare. Isadore is already well recognised internationally, but its potential is only just beginning. We are happy to have enabled our investors to participate in the Velits brothers’ success,” adds Natália Jašková from Crowdberry.