The Corporate Startup Interview: How Hatch’s founder led an inspiringly unconventional journey to acquisition

Corporate backing all the way

According to Polet, Hatch demonstrated significant KPIs and operational efficiency from the very beginning. "We saw a product that was ready and proven," she explained. "It worked really well for both Tommy and Calvin Klein, and we realised it could benefit the entire industry." 

The idea to expand it was spearheaded by Polet with the support of former PVH CEO Daniel Grieder, whose vision was to build something that would benefit everyone if the company were to sell digitally. Other brands soon started to show interest.

Key insight: Start with a proven product to boost credibility and reduce internal resistance. 

Hatch merges with Stitch 3D

While 3D design was an attractive capability to add, it came with its own set of challenges (e.g., the need for extensive design team training, rendering complexities, etc.). That’s when the decision was made to merge Hatch with Stitch 3D, another PVH corporate startup. The new entity became known as Stitch. 

Back in 2022, Polet explained, "Becoming one company will help us create better experiences and faster workflows for users, streamlining operations, learnings, and best practices from 3D design to digital sales.” 

During our interview, she went on to explain, “At some point, we realised that every conversation about a digital showroom eventually led to discussions about 3D design, and vice versa. We were actually talking to the same target audience." She went on to note, "From a business perspective, we knew we could do a lot differently, and that's what led us to merge Hatch and Stitch together to make it more powerful."

Key insight: Bringing together different technologies and teams can lead to some really powerful solutions. Look for ways to combine different corporate assets to boost overall value.

An acquisition amidst an uncertain backdrop 

As the economic downturn hit the fashion industry in 2023, many brands began to scale back on long-term digital investments. Despite this trend, Hatch's digital showroom continued to deliver results, making it an attractive acquisition target. Recognising the potential, Fashion Cloud, a B2B fashion-tech platform, acquired Stitch’s digital showroom technology (i.e. Hatch) to help streamline its ordering process. This meant the startup would be slit again before acquisition. 

As explained by David Schaap, co-founder at Fashion Cloud, “The Stitch Showroom is the most immersive and engaging software we've found, and we believe it has great potential for our existing customer base of more than 700 brands.”

The full team, including many of the original digital showroom developers, were integrated into Fashion Cloud. Polet, who had known the founders of Fashion Cloud for some time, knew there would be good synergy between the two companies. "It was like this really kind of serendipitous match," she said. "We found a really good way to make it work.”

Key insight: Cultural compatibility is crucial in M&A. Aligning goals and values helps smooth transitions and integration, ultimately increasing the chance of successful outcomes.

What made this venture a success? 

Here are just a few of the factors that contributed to the success of Hatch from idea to acquisition:

Strategic alignment

Hatch’s strategic alignment with PVH’s goals in terms of innovation, operational efficiency, sustainability, and market competitiveness played a crucial role in its success. It also helped further PVH’s digital transformation goals and was supported by former CEO Daniel Grieder, all of which helped ensure strong backing from the start.
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Autonomy 

Hatch operated with a high degree of independence from the beginning, which was essential for its rapid innovation.  As explained by Polet, "We were a subsidiary but in order to have autonomy and in order to move fast, we really carved ourselves out. We sat in separate offices, had different cadences, and recruited talent with startup backgrounds." 
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Vision and leadership
Having strong leadership that recognised the potential of new technologies and market shifts was vital. Polet's ability to pivot and integrate new solutions like 3D design kept Hatch at the forefront of its space.
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Cultural compatibility

The merger of Hatch and Stitch, and later the integration with Fashion Cloud, were successful due to cultural compatibility. "There was so much compatibility in culture, mindset and ambition," Polet recounts, highlighting the importance of aligning values and work ethics.

Impact and lessons learned 

Reflecting on her journey, Polet offered valuable advice for those embarking on similar paths. She starts by emphasising the importance of connecting with fellow corporate entrepreneurs who have navigated the venture landscape. "If I would have had two or three people to call once in a while, it would have been so useful," she said. She also highlighted the need to balance corporate and startup mentalities, maintaining a sense of urgency and motivation within the team.

In what concerns Hatch, its integration of digital showrooms and 3D design capabilities showcases the potential of building ventures within a corporate structure. In this case, the investment enabled PHV to access, test and integrate a highly valuable solution that expanded its talent capabilities and significantly streamlined its B2B sales processes. The journey from idea to acquisition was perhaps best explained by the CEO of Tommy Hilfiger Global & PVH Europe, Martijn Hagman:

“The acquisition is a natural next step for a startup that aims to fulfil its potential as an industry-changing tool. It represents the culmination of an incubating project that originated within our premises but was destined to reach wider spaces.”
For more inspiring corporate venture examples, check out our 50 Corporate Venture Examples report.