State of Lux

An Internet startup called Fashion Stake launching in coming weeks aims to shake up the fashion industry, just as peer-to-peer file sharing changed the music industry.

Fashion Stake will allow customers to directly fund fashion designers by browsing on-line collections and buying a stake in a collection in return for credits to buy clothes. Patrons can also share ideas with designers and vote on collections.

The model, inspired by Internet-based social media networks like Twitter and Facebook, taps into a growing business model called crowd sourcing where entrepreneurs go directly to customers for content, funding, and distribution.

Full story at Reuters