Poshmark’s IPO Has Implications for California’s Fashion Startups

California-based fashion reseller Poshmark recently had its IPO, and the early action surrounding the company has been resoundingly positive. CNBC’s report on early trading indicates in fact that from its initial listed price of $42 per share, Poshmark jumped about 130% by the time it started trading (at $97.50). This is a very good sign for a very promising company that essentially gives sellers and buyers alike an easy place to deal in clothing and accessories. What is interesting beyond Poshmark’s early success on the open trading market though is what implications if any it might hold for California’s fashion startup scene. Traditionally this is a state that’s very active with regard to independent boutiques and new fashion companies — particularly in and around the Los

Angeles area. Naturally, the COVID-19 pandemic has put a damper on this usually-active startup scene. But there are a number of reasons to expect fashion entrepreneurism in the state to bounce back quickly. For one thing, we know that success on the California startup scene tends to snowball. Arguably the main reason the state is such a hub for entrepreneurs — in tech, fashion, food, and elsewhere — is that there are so many success stories. People observe the scene in California and believe they too can thrive there. This is unlikely to change because of a single year of