Breezy Swimwear is offering equity at a $6 million valuation. That price represents just under a 7.2x revenue-to-valuation multiple — which is pretty reasonable for a direct-to-consumer (DTC) business. Furthermore, Breezy’s valuation is much cheaper than most other crowdfunding opportunities, particularly given that the company has already generated a good deal of revenue over the last three years. As a result, Breezy’s price rating is its strongest across all five metrics. 

The US swimwear market has taken off in recent years, and some speculate that it has to do with the rise of Instagram and other social media networks. Swimsuits are now a major component of a woman’s wardrobe, and pressure is high to post photos in a well-fitting, trendy suit. As such, it’s no surprise that the global swimwear market is expected to grow at a 5.1% CAGR over the next six years. The market is expected to hit $27.6 billion by 2027. 

Breezy Swimwear is primarily targeting US buyers right now. The US makes up about 30% of the global market, so Breezy is targeting roughly $8 billion in American spend. In addition, the company currently only offers women’s swimwear. That segment makes up over half of the global market, as women have a particularly high demand for new, fashionable swimsuits. As a result, Breezy’s addressable women’s market in the US is probably somewhere around $5-to-$6 billion. 

That’s a decent-size market with solid growth, but of course, Breezy has little chance of dominating it. There are hundreds of women’s swimwear brands already, ranging from brand names like Victoria’s Secret and American Eagle to popular up-and-comers like SHEIN. While Breezy Swimwear’s addressable market is reasonably large, its obtainable market is much smaller. That’s why the company’s market rating is below average. 

Breezy Swimwear was founded by Kris Izquierdo and Tanya Barahona. CEO Izquierdo graduated from Florida State University and founded Breezy Swimwear soon after. He has little other professional experience, though he does hold licenses for both personal training and real estate. Izquierdo was named a top seven entrepreneur under 30 by Florida State University and was featured on the Forbes Next 1,000 list in 2021. Barahona, simply listed as the company’s co-founder, gives no information on her background experience before Breezy. 

The Breezy Swimwear team has successfully built the business to more than $2 million in lifetime revenue, which is a notable accomplishment. However, they offer little in the way of credentials or compelling past experience. As a result, the company’s team score is quite low.

The swimwear market is extremely crowded, and Breezy Swimwear is not particularly differentiated. In terms of swimsuit styles, prices, and size inclusiveness, Breezy isn’t very different from many other swimwear brands. The company is particularly comparable to SHEIN, which also sells inexpensive, stylish swimwear. However, SHEIN is a TikTok sensation and made more than $10 billion in revenue last year (not just from swimsuits), so Breezy Swimwear is unlikely to compete. 

Breezy would argue that it’s core differentiator is its subscription model, allowing customers to pay a monthly membership fee to receive credits for buying multiple suits over time. This model might be unique to the swimwear industry specifically, but it’s certainly not a new concept in online retail. Big brands like JustFab and SAVAGE X FENTY by Rihanna have been popularizing e-commerce memberships for years. 

All in all, Breezy Swimwear isn’t much different than the hundreds — maybe thousands — of other boutique online clothing stories that have sprung up over the last decade. Breezy has successfully garnered a strong customer base, but the company will always be fighting tooth and nail in an extremely crowded market. Therefore, Breezy Swimwear’s differentiation rating is very low. 

Breezy Swimwear was founded in 2018 and has pulled in a decent amount of revenue since then. Income has steadily grown from $535,000 in 2018 to $609,000 in 2019 and $837,000 in 2020 (37% year-over-year revenue growth between 2019 and 2020). Breezy also proudly notes that the company was profitable within year one. That might be true, but Breezy has not been profitable in the two years since. The company posted a net loss of roughly $80,000 in 2019 and $127,000 in 2020. 

Beyond financials, Breezy has built a strong community of followers and customers. The company has more than 188,000 followers on Instagram (though engagement is relatively low, so many might be bots). More than 40,000 people have purchased Breezy swimsuits, and the company has 5,000 active members. Among these monthly subscribers, Breezy boasts an 83% retention rate. 

Breezy has accomplished solid traction over the last three years, but it’s not yet an explosive success story. Revenue growth is decent but not incredible, and relatively few customers are paying for a monthly Breezy membership. Plus, the company has not raised funding yet. All in all, Breezy’s performance rating is just average. 

Breezy Swimwear is a relatively low-risk investment compared to many other crowdfunding opportunities. The company has already proven its business model and has generated more than $2 million in revenue. There is some financial risk, as the company was low on cash at the end of 2020 (presumably due to a lack of fundraising). Relatedly, there is some funding risk. Breezy’s team is not particularly experienced, so that area poses some risk as well. However, in most other areas, Breezy Swimwear is a relatively well-proven company.

There are a few red flags that might give prospective investors pause. For one, the Breezy Swimwear team is young and inexperienced. There’s no evidence that they have what it takes to successfully scale a business. Plus, it will be particularly difficult to continue growing Breezy given the stiff competitiveness of the swimwear industry. Breezy is contending with brand-name companies with millions or even billions of dollars to spend on marketing. It’s not clear how Breezy can really differentiate itself from companies selling such similar products under stronger brands. 

There’s also an issue of reputation and ethical business practices. Many customers have registered complaints about Breezy with the Better Business Bureau (BBB), leading the BBB to give Breezy a rating of C+. It seems that Breezy sometimes doesn’t actually deliver products that have been purchased (which is really just the basic expectation) and that the company’s Instagram ambassador program comes across as a scam to some registrants. Those are serious issues, and Breezy risks significant reputation consequences if these concerns aren’t addressed. 

Breezy Swimwear has undoubtedly had decent success, and it’s impressive that the company’s young founders have generated more than $2 million in revenue in three years. However, there are serious questions as to whether Breezy’s growth can continue given lack of differentiation in a crowded industry and the struggles that Breezy is already facing.

The company’s traction really speaks for itself. More than 40,000 customers have bought Breezy Swimsuits, 83% of monthly membership sign-ups are retained, and the company has generated over $2 million in revenue over the last three years (with strong year-over-year revenue growth). 

Breezy is undoubtedly tapping into a generational trend. An increased focus on fashionable swimsuits has raised the demand for them, particularly among younger generations. With Breezy’s strong Instagram presence and affordable prices, it’s easy for a prospective buyer to happen across a cute suit and buy it in a few clicks. The company’s opportunities will only expand once it launches a men’s swimwear line, and there are undoubtedly other apparel opportunities that could make sense in the future. 

Breezy Swimwear might not be the most differentiated business ever, but it seems to be selling the right products to the right audience at the right time. At a relatively reasonable valuation, there’s a decent chance that investors can reap a return. 

Breezy Swimwear is a direct-to-consumer (DTC) swimsuit company selling affordable, size-inclusive, fashionable swimsuits. The company makes money from both one-off swimsuit purchases and recurring monthly memberships. More than 40,000 customers in total have bought a swimsuit, and Breezy has 5,000 active subscription members. The company has generated more than $2 million in revenue over the last three years and seems to have a strong read on the pulse of trendy swimwear. 

On the other hand, Breezy’s founding team is inexperienced, and it’s up against an extremely crowded market dominated by a wide variety of brand-name players. Multiple complaints have been raised about Breezy to the Better Business Bureau, which is a definite red flag. Plus, Breezy doesn’t seem to have a strong point of view on how to continue scaling the business. Therefore, Breezy Swimwear has been rated a Neutral Deal. 

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