Unspun

The fashion industry has long been mired in issues of waste, inefficiency, and overproduction, caused by the systemic nature of traditional manufacturing. With increasing demand for sustainable and customized clothing options, tech-laden fashion startups have gained significant traction recently – particularly among eco-conscious and younger consumers. 

Unspun, which was co-founded by CEO Beth Esponnette, President Walden Lam, and Chief Technical Officer Kevin Martin, is leading the charge in this transformation through their unique approach to apparel manufacturing that combines robotics, software, and sustainable manufacturing practices. The firm fundamentally reimagines how garments are manufactured. The term used at the heart of Unspun is the Vega™, a proprietary 3D knitting machine that can create garments directly from yarn into a finished shape, which completely eliminates fabric waste and does not involve a traditional cut-and-sew method. Since they use an on-demand production method, they have a unique ability to produce garments made to personalized, body-scanned specifications for every shopper, therefore minimizing overproduction and return rates. The company is interested in one of the big environmental problems in this space: fashion waste, which contributes roughly 8–10% of the world's carbon emissions. Their end goal is simple – a world without waste in fashion.

Users can self-scan using a mobile phone or partner scanning location, creating a unique digital twin that's used with their FitOS software to create a made-to-order product. Because it is software-driven personalization, the firm ensures an unrivaled fit while reducing unnecessary inventories. Unspun has several product categories, from denim jeans to performance wear, and works with brands such as Pangaia, Weekday (H&M), Collina Strada and Decathlon. Their technology can facilitate both direct-to-consumer and brand partnerships. The Vega system can make a single pant leg in under ten minutes, with only about 3% waste, which is incredible compared to the average 14% waste in traditional fashion manufacturing. The firm has also built a fun marketing feature into their app allowing users to see their real-time sustainability scores for choices they make. This helps customers understand their consumption's environmental costs

Unspun officially had a breakout year in 2024 after raising $32 million in Series B funding led by Lowercarbon Capital, DCVC, SOSV, and Miyako Capital, bringing its lifetime funding to $50 million. The prior Series A raised another 14 million, decidedly helping them scale manufacturing and software. With the influx of funding and ramped up activities, the firm’s valuation would climb to over $125 million by late 2024. At the start of 2025, it employed over 70 employees on three continents. The company has R&D and tech hubs in San Francisco (its headquarters), Hong Kong, and Zurich while establishing its micro-factory deployment potential across North America and Europe. Notably, its global team is made up of professionals from engineering, robotics, fashion tech, and sustainability, all known to champion their mission to build localized production models and international B2B partnerships. A notable partnership involved a deal with Walmart for 350 Vega machine deployments in the U.S. piloting custom-fit chinos – to mitigate shipping emissions and unsold inventory through nearshore garment production. Unspun charges a premium price for consumers — through the on-demand made-to-order garment model, the retail price is generally $150-$200 — reflecting the quality aspect of a bespoke fit, zero-waste construction, and ethically-sourced fabrics.  This multiple streams of income business model allows Unspun to continue building its high value brand, while establishing a sustainable growing with a potential path to profitability. Unspun is nearing $15 million in revenue by the end of 2025, and in its internal projections is expected to be profitable by mid-2026 due to increased demand for its Vega hardware and FitOS licensing. Current margins and profitability are derived from high-margin software subscriptions and a decreased cost of operations based on their automated, zero-inventory production model. While the firm is currently not disclosing net profit exacts in public forums, it is reasonable to assume a good directionality towards continued profitability over the next 12–18 months, given its unit economics and an accumulating backlog of B2B contracts.

The firm is now also facing a wave of competition from a new generation of fashion-tech innovators - such as Bolt Threads, a pioneer in sustainable biomaterials with Mylo™ leather; Natural Fiber Welding who is pioneering plant-based textiles; and Ambercycle who focuses on textile-to-textile recycling - and indirectly from a second tier of a traditional fashion sector that is investing in A.I. driven sizing and circularity (e.g., Levi's, Zara). However, Unspun radically differentiates itself via integrated hardware, software, and production (aspects that remain mostly siloed and inefficient in traditional supply chains) which gives them control over a scalable and sustainable quality process. The other players all offer innovation at component level (materials, recycling, or fit prediction), but the company is re-envisioning the lifecycle of garment production from scan to shelf.

Unspun is already taking its business global with plans to open additional pilot factories in Europe, Asia, and Canada. The goal is to establish local production hubs that reduce excessive air shipping emissions while being able to rapidly respond to local demand and overall sustainability targets. The company is in the process of rolling out even more integrations with A.I. design tools and advanced recycling systems that would ultimately provide for fully circular production of fashion. As they continue expansion, the firm transitions from a high-impact innovative tech startup, to a scalable manufacturing ecosystem and measurable impact on climate.

In a statement reflecting the company’s long-term vision, co-founder Beth Esponnette, stated that “We’re building a future where you can walk into a store, and get scanned, and have a pair of jeans made just for you, no waste, zero inventory, just impact.” Clearly, they are not just ambitious, but with a legitimate tech stack, Unspun is poised for a potential leap into a new era of climate-positive fashion. With solid financial backing, premium retail partnerships and elite technology, Unspun’s rise really represents not only a new way of making clothing, but a revolution in how we think of consumption itself.

Click here to access Unspun's website.