Streetwear label Madhappy has caught the attention of one of the world’s largest luxury conglomerates.
On Thursday, Los Angeles-based Madhappy announced a $1.5 million seed round of funding in which Louis Vuitton Moet Hennessy (LVMH) was the lead investor. Other contributors include Tommy Hilfiger and the founders of Sweetgreen.
LVMH, which owns some of the world’s best-known luxury brands, made waves in 2018 when it launched an accelerator program to support innovations in fashion. Now, it’s investing in Madhappy, a startup that it considers especially promising.
What makes this streetwear company stand out from the rest—and what inspired investors to contribute big money—is its mission. Madhappy launched in 2017 as a way to promote mental health awareness and create a line that boasts inclusivity. Celebrities such as Gigi Hadid, Steph Curry, Katy Perry and Cardi B have been spotted in the brand’s streetwear staples, which feature bold colors and uplifting messages.
“Growing up, we found that many streetwear labels seemed to be very exclusive, and we wanted to create a brand that was the opposite of that,” Madhappy’s co-founder Peiman Raf told Fast Company. “But we want to take it a step further and start conversations about mental health. Many of our events are focused on talking about mental health issues that most people don’t often talk about publicly.”
Madhappy maintains retail spaces in Los Angeles and New York City. The brand offers streetwear basics at a higher price point. Hoodies retail for $160, sweatpants for $140 and T-shirts for $70. And the brand equally appeals to both men and women, which is uncommon for streetwear brands, as they typically skew male.
This signals a bigger shift in the luxury and streetwear industries, which have been getting a makeover since the likes of Virgil Abloh and collaborations between Supreme and Louis Vuitton emerged on the scene.