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Funding

THE ASK: Performance sportswear startup Fractel is raising $750,000

- February 20, 2024 4 MIN READ
Matt Niutta and Mathew Lionnet
Fractel founder Matt Niutta and CFO Mathew Lionnet
Welcome to The Ask, Our new column on Startup Daily designed for founders looking for capital.

It may be venture capital, crowdfunding or another path, and is designed to flag your startup to potential investors. If you’re on the hunt for cash, we’re happy to share the news with Australia’s startup community. This is your chance to pitch directly to them.

Our first startup Fractel, which is raising up to $750,000 on Equitise. Founder Matt Niutta has the details. 

 

Startup: Fractel

Founded: 2018, Sunshine Coast, QLD.

The ask

We are aiming to raise a minimum of $200,000 and a maximum of $750,000. The minimum investment amount is $250.

The plan

To expand our reach outside of Australia, keep more of our best sellers in stock, launch new innovative products, amplify our sustainability initiatives and grow our passionate community through a heap of exciting activations around the country!

About them

Fractel’s mission is to revolutionise performance sportswear by merging innovation, style, and sustainability.

Born from founder Matt Niutta’s vision amidst personal adversity, we’ve rapidly grown from a small startup based on the Sunshine Coast, into a globally recognised brand. Our range, celebrated for its sustainability and unique designs, includes over 100,000 sold products made from 100% recycled fabrics, designed for runners and outdoor enthusiasts.

Our standout feature is our Custom Headwear Program, which caters to a global audience, including partnerships with Red Bull and Google, showcasing our commitment to quality and community engagement.

Our vision extends to expanding our product line into performance apparel, leveraging our brand’s trusted reputation. With significant revenue growth and a strong commitment to environmental causes, we’re set to broaden our market reach, especially in the USA. This equity crowdfunding campaign invites you to be part of a brand that’s not just about profit but about fostering a community that values sustainability, innovation, and the spirit of adventure.

The market

Fractel addresses the growing demand for sustainable, high-performance sportswear that doesn’t compromise on style or functionality. Our target market encompasses runners and outdoor enthusiasts who prioritise eco-friendly products, ranging from everyday people to professional runners, across a broad age group. This demographic values quality, sustainability, and products that support their active lifestyle while reflecting their environmental commitments.

The growth potential in the performance sportswear and customised apparel market is significant, especially with the increasing consumer shift towards sustainability and ethical manufacturing. 

Key trends acting as tailwinds for Fractel include the rise of eco-conscious consumerism, the popularity of personalisation through our Custom Headwear Program, and the expansion of the athleisure trend, blending style with functionality. These trends, coupled with our commitment to sustainability and community engagement, position Fractel to capture a substantial share of the market, particularly in untapped segments like performance apparel and international markets, notably the USA.

The  team

Fractel was born from the resilience and vision of its founder, Matt Niutta, who, after being diagnosed with Retinitis Pigmentosa in 2011, turned a personal challenge of becoming legally blind into a thriving business.

Matt’s journey from a spare bedroom in Queensland back in 2018, to the helm of a rapidly growing performance headwear brand is a testament to his determination and passion for the running and outdoor community.

With over a decade of experience in surveying management, Matt brings an exceptional eye for detail and a knack for team management and client relations, skills that have been pivotal in steering Fractel’s journey.

Joining Matt in this venture is Mathew Lionnet, serving as the CFO. With a background as an actuary in insurance, Mathew brings a decade of experience in numbers, analytics, data, finance, and business management. His analytical skills and financial acumen complement Matt’s creative drive and community-focused vision, making them a formidable team.

Together, Matt and Mathew embody the spirit of Fractel: innovative, resilient, and community-driven. Matt’s personal adversity and his commitment to inclusivity and sustainability have shaped Fractel’s ethos, making it a brand with a mission beyond profit. His strategic financial oversight ensures the brand’s sustainable growth and operational efficiency.

Their combined experiences and skills have positioned Fractel not just as a brand but as a community leader in the performance sportswear market.

 

The build & business 

Fractel has successfully transitioned from its initial MVP phase to a fully operational business with a robust product line that includes premium performance headwear and soon to be apparel.

Our business model revolves around direct-to-consumer (DTC) sales through our online platform, B2B partnerships with retailers globally, and a unique Custom Headwear Program that caters to clubs, teams, retailers, events, and corporates internationally. This diversified approach not only ensures multiple revenue streams but also enhances brand visibility and market penetration.

Since our launch, we’ve achieved significant milestones, including expanding our product range to incorporate 100% recycled fabrics, partnering with global brands like Red Bull and Google, and establishing a strong distribution network across key markets in Europe, Asia, and the USA.

Our revenue has seen a remarkable year-on-year growth, with last fiscal year’s revenue surpassing $1 million and on track to double this fiscal year. 

Looking ahead, Fractel is poised for further expansion. Our plans include broadening our headwear range to cater to specific outdoor sports, entering the performance apparel sector, and scaling our Custom Program into apparel.

These initiatives are supported by a strong foundation of customer loyalty, evidenced by over 600 audited product reviews with a 4.9-star average, and a growing online community with over 23k Instagram followers and a global email list of over 20k.

Our scalability is underpinned by strategic investments in fabric technology, marketing, and product innovation, ensuring that Fractel remains at the forefront of the performance sportswear market.

The close

Expressions of interest to invest are now open on Equitise at: equitise.com/offer/fractel

The EOI/exclusive access phase closes on March 4, with the offer publicly available on March 7.

For all questions, contact Matt Niutta – matt[at]fractel.com.au

 

fractel.com.au

Instagram: @fractelrunning