Kornit Digital Stock for Digital Textile Printing

We learned everything we know about fashion from watching the movie Zoolander. In other words, we don’t know much about the world of runway models and runaway fashion trends. It’s a joke we’ve made before when researching startups using artificial intelligence for selecting and designing fashion apparel. This fashionable use of AI got a ton of exposure a few years ago when Stitch Fix (SFIX), which uses AI algorithms to personalize clothing, went public back in November 2017. Since then, the company has lost 40% of its value versus an 81% return for the Nasdaq, despite reaching more than $2 billion in revenue last year. Maybe it wasn’t the best idea to let employees work when they felt like it? Fashion aside, one investment thesis that we are keen about is on-demand manufacturing, and an Israeli company called Kornit Digital is employing a similar business model to the garment and fabric industry.

Market Demand for Digital Textile Printing

The global apparel market is big business at an estimated $1.5 trillion. At least that’s the number you’ll find on Statista, which doesn’t reveal the original source of the data. We’d need to shell out $750 a month to get that privileged information, but it seems safe to assume that the textile market is worth well north of $1 trillion. Now, getting from there to the value of the digital textile printing market