Ash and Anvil – Clothes for Short Men
DEAL
EPISODE SUMMARY
🕓 Air Date: October 22, 2017
Asking For:
$100,000 for 12,50%
Investor:
Mark Cuban
Deal:
$150,000 for 25%
PRODUCT SUMMARY
Ash & Anvil specializes in clothing tailored for shorter men, addressing the challenges they face in finding well-fitting shirts.
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Background Story
Eric Huang and Steven Mazur, both residents of Detroit, met through Venture for America, a nonprofit connecting college grads with startups in emerging cities. Recognizing the common struggle shorter men faced in finding properly fitting shirts, they founded Ash & Anvil. Detroit’s resilience and underdog spirit inspired them to build the company there, aiming to contribute to the city’s comeback and provide a solution for shorter men nationwide.
The Product
Ash & Anvil offers everyday shirts designed specifically for men 5’8″ and under, addressing common issues like sleeves and body lengths being too long. The founders conducted extensive fittings with shorter men, refining details such as a collar, a tail drop, and cuffs.
Priced at $79 with a margin of 55%, the shirts are sold online, and the founders emphasize the potential for growth and expansion into other clothing items like jeans, chinos, and shorts.
How It Went
The company’s position before Shark Tank
Launched nine months ago, Ash & Anvil has generated over $130,000 in sales, selling out twice. The company operates solely online, facing a challenge of inventory due to high demand. The founders aim to cater to the one in three American men who are 5’8″ and under, representing over 40 million adults in the U.S. Their focus is on addressing the clothing needs of shorter men, a segment they believe has been underserved compared to plus-size and big-and-tall markets.
The Negotiations:
The founders sought $100,000 for 12.5%, but Mark Cuban made an offer of $150,000 for 25%, emphasizing the niche opportunity in the market. Kevin O’Leary countered with $100,000 for 15%. Mark Cuban’s offer was accepted, securing a deal at $150,000 for 25%.
Despite some hesitation and a brief consideration of O’Leary’s offer, the founders recognized the potential benefits of partnering with Cuban and agreed to the deal. Cuban’s decisive offer and the founders’ willingness to accept marked the successful conclusion of the negotiation, securing Ash & Anvil a deal with a Shark.
