Serena Williams’ VC firm heads a $3M investment in fashion startup Trace.

Serena Williams’ venture capital firm, Serena Ventures, has led a $3 million seed round for Trace, a fashion tech startup that helps shoppers arrange clothing rentals and resales before making a purchase, according to WWD. The round also included participation from Shakti VC and will support the newly launched marketplace as it works to make fashion more affordable through shared ownership and resale, AfroTech reported. Trace was founded by Harvard Business School graduates Katie Pfleger and Ella Rubin.

The platform lets users list clothing and accessories for possible resale or rental before buying them, connecting shoppers who want the same items so they can help offset the original cost. Pfleger previously worked at Etsy, while Rubin helped launch Walmart’s online grocery business. Unlike traditional resale platforms, Trace allows users to assess demand before committing to a purchase.

Shoppers can paste a product link into the app, and artificial intelligence automatically creates a listing using the item’s details. Other users can then show interest in renting or buying the item at a set price and date, helping reduce the buyer’s upfront ownership cost. According to WWD, buyers pay a 10% service fee plus a $3 protection fee, while renters pay a 10% service fee and a protection fee of between $5 and $12.

Sellers do not pay commission on resales, but they do pay a 15% commission on rentals. Williams told the outlet that Serena Ventures invested in Trace because of its market opportunity, business model, and founding team. “Trace is transforming the way people shop,” Williams said, according to the publication.

The investment adds to Williams’ expanding venture capital portfolio. Through Serena Ventures, the 23-time Grand Slam singles champion has backed companies across technology, healthcare, and consumer sectors, including businesses founded by entrepreneurs from historically underrepresented communities. Trace is entering the fashion resale space with a model aimed at helping consumers recover part of their spending while broadening access to clothing through rentals and secondhand sales.

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