Notes on Fashion Startup Entrepreneurs Presentation

Overview

• Entrepreneurs pitch to investors for funding.
• Tonight's goal: secure $250,000 for fashion and beauty businesses.

Investors

• Rebecca Minkoff - Designer, global lifestyle brand worth over $100 million.
• Kaia Bamp - Co-founder and CEO of Birchbox, beauty e-commerce with over 1 million subscribers.
• Gary Vaynerchuk - CEO of VaynerMedia, 30 years of financing in the fashion industry.
• Christine Hunsicker - CEO of Gwynnie Bee, plus-size clothing powerhouse.

Entrepreneur Pitches

Laura Woz

• Founder of WXYZ, an accessory brand described as "wearable art."
• Seeking $100,000 for 20% equity.
• Launched in 2012; products featured in Beyonce's video "7-Eleven" and on tour with Nicki Minaj.
• Sales Statistics: Last year sales were $160,000, currently straddling profitability, lost $40,000.
• Plans to source alternative materials for a new, lower-priced line.
• Proposed a road test with pop-up store to evaluate new product line.
  • Investors suggested clear revenue strategies for growth.

K. Majmundar

• Creator of Zip Tank, a tote bag that transforms into a tank top.
• Seeking $150,000 for 25% equity, valuing the company at $600,000.
• Sold about 5,000 units for $80,000 in sales, with 55% to 78% margins.
• Investors express skepticism about product viability and branding.
• Christine proposed a partnership with a focus on broader product development.

Dennis Guile

• Founder of Bear Hug Outerwear - a hoodie that creates insulation.
• Seeking $250,000 for 10% equity, valuing the company at $2.5 million.
• Kickstarter campaign failed to reach funding goal of $80,000, only raised $10,000.
• Investors were skeptical about market size and product clarity, leading to multiple passes on investment.

Key Insights

• Importance of road tests and market validation for new products.
• Investors often seek clear revenue strategies and market size analysis before committing.
• Product differentiation and understanding target markets is crucial for success.
• Feedback from industry experts can provide valuable insights for entrepreneurs.
• Advisory roles can be beneficial even if direct investment isn’t made.

Conclusion

• Entrepreneurs need to focus on diversifying their offerings while maintaining brand integrity.
• Understanding customer demographics and how products fit into their lives is essential for securing funding.