Overview
KENT Underwear is an eco-friendly apparel product that was founded by Stacy and Jeff Grace in 2019. The company produces the world’s first compostable organic underwear line that turns into soil in 90 days when it’s no longer usable.
KENT Underwear appeared on the first episode of season 14 of Shark Tank, where they secured a deal with Daymond John for $200,000 for 15% equity. As of 2024, KENT Underwear is worth $2 million.
Pitching to a Live Audience
KENT Underwear appeared on the first episode of season 14 of Shark Tank, asking for $200,000 for 15% equity. The Sharks were impressed with the quality of the product, which sells for $20-$24 and is manufactured in America for $8.07.
Year to date, the company had sales of $99,000 with 85% of them direct to consumers and 15% through wholesale.
Cuban was the first to go out, and Robert booed the decision trying to amp up the crowd but failed miserably. Barbara made the first offer, seeking 20% for $200,000.
Robert undercut Barbara wanting 15% for the same amount.
Daymond jumped back in to match Lori and Robert’s offer.
Four Sharks fought it out for the deal, but the founders chose Daymond due to his background with FUBU.
Life After Shark Tank
A year after appearing on the show, it appears the deal with Daymond John never closed.
Despite this, they struck a deal with Nordstrom.
During filming, YTD sales were only $99,000, so the founders were expecting to make $400,000 in the second half of the year.
The business also expanded their range to include t-shirts.
In January 2023, Jeff got a job as a Senior Copywriter at BBDO LA, so he’s not working full-time on the venture. Currently, you can purchase the product on their website WearKENT.com and Madewell.com.
The company was expecting to make $500,000 in annual revenue for 2022.
As a result, KENT Underwear is worth an estimated $2 million.
About the Founders
Stacy and Jeff Grace are a married couple with strong ties in the entertainment industry in LA.
Jeff has a bachelor’s degree in political economics and started his career as a copywriter for Leo Burnett. He later transitioned into film and television production when he founded Vacationeer Productions.
Jeff has also worked as an actor, writer, director, and comedian, signed under different companies.
Stacy has a master’s degree in strategic fashion marketing and worked at financial firms and retail stores before finding her way into the apparel industry.
She has worked with clothing brands for a decade and noticed that they produced a lot of non-biodegradable waste, which inspired her to create KENT Underwear.
Founding KENT
KENT Underwear was founded in 2019 by Stacy and Jeff Grace. The company produces the world’s first compostable organic underwear line that turns into soil in 90 days when it’s no longer usable.
The idea for the company came to Stacy when she noticed the amount of non-biodegradable waste produced by clothing brands. She chose to focus on underwear and created KENT Underwear with her husband.
In the first year, KENT Underwear made $30,000 in sales, and in the second year, it made $120,000. The company’s eco-friendly approach and quality product caught the attention of the Shark Tank investors.
Lessons From KENT Underwear’s Success
Based on the Shark Tank episode about KENT Underwear, here are three practical tips for aspiring young entrepreneurs:
1. Address environmental and social issues
KENT Underwear tackled the issue of waste and plastic use in the fashion industry by creating compostable underwear.
Entrepreneurs should identify and address pressing environmental or social issues with their products, which can help differentiate their business and appeal to environmentally conscious consumers and investors.
2. Validate your product with strong market research
The entrepreneurs behind KENT Underwear emphasized their market research and the gap they found in the market for 100% natural underwear.
Conduct thorough market research to validate the need for your product, understand your target audience, and refine your value proposition.
This can also help you defend your business idea and valuation when pitching to investors.
3. Prepare for different business scenarios
The KENT Underwear team was prepared to discuss their business model, margins, and sales strategies, including their take-back program for composting.
Being prepared to discuss various aspects of your business, including production costs, pricing strategies, and sustainability initiatives, can help you build investor confidence and demonstrate your comprehensive understanding of your business operations.
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