NineteenTwenty Founders Present Their Pitch On Shark Tank Season 16
Highlights
- NineteenTwenty is brought to the Shark investors by Ashley and Zach Sankar.
- The company was started in December 2022.
- The pitch made the investors tear up at the end.
Overview
| Category | Details |
| Name | NineteenTwenty |
| Founder | Ashley and Zach Sankar |
| Industry | Fashion |
| Product | Convertible clothing |
| Funding | Self-funded |
| Investment Ask | $250K |
| Equity Offered | 10% |
| Valuation | $2.5 million |
The entrepreneur couple, Ashley and Zach Sankar, try their luck on Shark Tank Season 16 Episode 4 with NineteenTwenty. While Ashley is the founder, Zach is its COO. The two of them claim that they are revolutionizing clothing through their multifunctional convertible clothing, perfect for everyday life.
To explain better, Ashley, who is seen wearing a stylish puffer jacket, says the product converts into so much more. First, it can be changed into a blanket by simply unzipping the bottom of the jacket. Second, it can be converted into a tote bag, which can carry up to 40 pounds.
The entrepreneurs further state that their jackets can be used for more than just travel purposes. One can take them to the farmer’s market, gyms, and laundromats. Additionally, their windbreakers have convenient convertible features.
Zach shows that the windbreaker he is wearing has a convertible hood. If one zips it off and then zips the sides together, it turns into a crossbody bag. So, if hot, one can take their jacket off, place it inside the crossbody bag, and change it into a travel pillow.
NineteenTwenty: What Happened On Shark Tank Season 16
Ashley and Zach approach the investors with the 1920 Shark Tank pitch, seeking $250K for 10% equity in their company. Daniel Lubetzky wants to know if their background is in design. Ashley says she comes from the supply chain vertical with nine years of experience as a logistics officer in the Army for nine years.
Zach worked at US Airlines in a variety of roles, both in operations and customer-centric arenas.
The Sharks try their samples. The entrepreneurs have funded NineteenTwenty all by themselves. Their sales are all direct-to-consumer. The prices vary, with one of the jackets being at $298 in retail. It cost them $65-$70.
Ashley reveals that they are quite viral on social media. Their first video got about 66 million views. The Sharks are amazed to hear this.
NineteenTwenty started in December 2022, during which the sales were $78K. Following this, in 2023, they made $269K. Sales year to date are $157K, taking their lifetime sales to $505K. Robert Herjvec feels ‘there’s a disconnect’ because their first month sales and social media popularity are much higher.
Ashley responds, saying it is due to production limitations. They do one drop per quarter.
Kevin O’Leary wants to know if they are profitable. Out of their total lifetime sales, the entrepreneurs have made $97K. Further, they are projecting $750K in sales this year. They feel they will make $350K in net benefit from this amount. Ashley and Zach do not pay themselves anything.
Mark Cuban feels the numbers are not adding up because if they are not paying themselves, they should be able to buy 1000 units. The founder says the money went into patents, shipping, and R&D. Mark says the $97K is not profit; instead, it is the gross margin dollars.
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Did NineteenTwenty Get A Deal?
Mark feels the entrepreneurs do not understand accounting well, and their actual profit is near or less than $82K. So, he exits the 1920 Shark Tank deal. Kevin thinks NineteenTwenty is not a ‘full-time gig.’ It is a product. Plus, the entrepreneurs can not be 100% committed as they have their respective jobs.
Robert reacts, saying, ‘ That is unfair.’ Daniel says he ‘strongly disagrees’ with both Mark and Kevin. But he chooses not to make an offer, citing the ‘competitive’ industry.
Kevin argues with Lori and Robert over their strong reactions to his previous comment on the entrepreneurs’ jobs. He then makes an offer of $250K for 30% equity, given that both of them quit their jobs. Ashley politely declines the deal.
Zach then takes a moment to share the story of his ‘hardworking wife’ who started the business to support his dream of becoming an airline pilot. Robert expresses his support to the couple and makes an offer of $250K for 25% equity. Ashley counters it for 20% equity, but Robert denies it.
Thinking about the offer Ashley breaks down when she remembers her late mother. Lori steps up and hugs Ashley. Robert, too, tears up and describes how his mom supported him during his struggle period. He then says that he believes the entrepreneurs will do great and should not ‘squabble’ about the 5%.
Ashley and Zach take up the deal on Shark Tank for $250K at 25% equity.
See what else is new! View other businesses featured in this episode.
