Alta Raises $20M Series A Led by Forerunner to Expand AI Fashion Platform

This roundup covers AI fashion startup Alta's funding and expansion. Alta, founded by Jenny Wang, raised a $20 million Series A from Forerunner. Alta will use the funding to develop its app as a social consumer product and a service for fashion businesses. Forerunner managing partner Eurie Kim pre-empted the round and is joining Alta's board.

Menlo Ventures and Aglaé Ventures returned as investors in Alta. Aglaé Ventures is the investment firm of the Arnault family behind LVMH. Alta's angel investors include stylist Meredith Koop, NFL player Paris Johnson Jr., Rylee Martell and Karlie Kloss.

Alta focuses first on styling, with shopping recommendations incorporated into the product. Other AI fashion companies, including Phia and Daydream, have concentrated on shopping. Kim said fashion companies have spent 30 years pursuing a digital wardrobe like the one in Clueless. Kim argued that inadequate technology, rather than insufficient imagination, had prevented that vision from becoming reality.

Alta is expanding services for fashion brands and retailers alongside its main consumer app. Wang said Alta aims to become the best AI provider for the sector. Alta has trained 12 proprietary AI models that learn about individual fashion items and complete outfits.

Alta began supplying all AI capabilities in Rent the Runway's app earlier this year. Rent the Runway recorded a 35% increase in engagement after integrating Alta's styling and rendering capabilities. Gap is among the first mass-market brands pursuing a major integration, encouraging app users to virtually try on Gap products and share outfits.

Zimmermann used Alta to assess shoppers' reactions to the brand's Paris Fashion Week show. Shoppers could virtually try on the show's outfits using Alta avatars before the products became available to buy. The responses helped Zimmermann determine manufacturing quantities. Brands outside fashion, including Elf Beauty, have also tested integrations.

Alta will spend the new funding on AI infrastructure. Alta will expand its 10-person team across the consumer and enterprise businesses. Alta will also adapt its product for different markets. Users have generated 700 million outfits and 20 million avatars so far.

Wang said the ultimate goal for consumer AI is personalization that anticipates what users want before users recognize those preferences. Wang is working toward AI agents that examine users' calendars, preferences and travel plans and shop on users' behalf.