# Kitsbow Apparel Purpose-Designed Apparel, Made in the U.S. ## Elevator pitch We make incredible, purpose-designed clothes for exploring the outdoors (and living your life). These are durable, which means they're sustainable, and they're Made to Order, in the exact size and color you want. We make them here in the U.S. and we have an astonishing array of sizes and fits (4,600, so far). - Canonical URL: https://wefunder.com/kitsbow - Entity ID: wefunder:company:122481 - Last updated: 2026-06-05T05:00:48Z - Generated at: 2026-06-05T14:10:27Z ## Quick facts - $3m sales in 2021 - Bringing living wage careers back to the U.S. - Support employee ownership and the values of a Benefit Corporation - 30,000+ customers with 1,000+ 5-star product reviews - Rebuilding a rural town after 30 years of economic decline and loss of jobs - Sustainable apparel: Made to Order with minimal waste - Give customers what they really want with 4,600 size/color combinations - A leadership team tested by fire, and a CEO with decades of experience ## Active fundraises - wefunder:fundraise:69414: 4(a)(6) successful (USD) - wefunder:fundraise:69835: 4(a)(6) successful (USD) ## Story We've been working hard for 3 years to make apparel here in the U.S., make it in a new way (people-centric), train and support our team members, rebuild a rural town after 30+ years of decline, and make a huge difference in sustainability by how we make it and how we sell it. Now we need your help.The minimum investment is just $100, and as a public benefit corporation, Kitsbow is best served by a large number of smaller investors -- rather than traditional venture capital or private equity firms. In part, because we hope to always keep Kitsbow owned by the employees and the community.We're 10 years old, but in this new incarnation we've only been making clothes in the U.S. for the past three years. And it hasn't been easy. In fact it's been very, very difficult -- and now we need your help so we can keep this dream alive, and keep growing!We've grown 48% on average each year for our first 10 years. Now we're charting a course of more modest growth (30% each year) as we push hard to become profitable. As we grow, we'll employ more and more people that we pay to learn how to sew.You can help lead a community of 30,000+ customers that have already vetted, tested, and concluded with 1,000+ 5-star product reviews that Kitsbow delivers the best-designed adventure apparel made anywhere.What Is This?Our JourneyKitsbow is a 10-year old brand, and a new benefit corporation. This is a diagram of our journey, so far.To learn more about the pivot to PPE (143,000 fabric masks with near-N95 filter quality made here in Old Fort, and another 140,000 faceshields) check out the podcast here or read this article. Or read the long-form narrative posted here as testimony to the U.S. Congress in July, 2020.Note that we stopped importing garments from overseas in 2019 when we moved to North Carolina. Only one member of the team relocated from California, so it was essentially a re-start.In January, 2022 the employees purchased the company from the original investors and founder, and restructured with intention as a public benefit corporation.You can get the full story on the Kitsbow journey with either of these podcasts: Blister on the transition to employee-owned and benefit corporation, and also Singletracks.1,000+ 5-Star Reviews by Customers & ProfessionalsKitsbow is widely known for its quality, durability, style, and exceptional fits. For example, the famous Icon Pendleton Wool shirt has 6 different fits for men, and 4 different fits for women.Forward-looking projections are not guaranteed.Kitsbow's first 10 years demonstrated 48% annual average sales growth, year over year.As we take the next step in the journey, the growth is forecasted at a more modest 22% annual average year over year.And to note the mix of apparel and PPE (red color columns above). As we forecast apparel-only sales, we exclude the PPE in 2020 and 2021 to see projected average annual growth of 32%.(The sales numbers shown here are actual 2013-2021, the subsequent periods are forecast and speculative).Sales were $3M in 2021, however recognized revenue was $2,690,522. as the difference was product purchased by customers in 2021 but not shipped until 2022, when the revenue was then recognized.The Community Loves Kitsbow4,854 new apparel customers in 202130,000+ apparel customers today (and 133,950 PPE customers)23,000+ Instagram Followers62+ brand ambassadors1,500+ loyalty club members (proven lifetime value of purchases)60+ new careers in Old Fort, NCRebuilding A Town After 30+ Years of DeclineKitsbow has partnered with a 501c3 non-profit to own, develop, and operate a 60,000 square foot facility across the street in Old Fort, which will offer community services on the ground floor while Kitsbow expands its production facilities into the 30,000 square foot second floor.This expanded facility for Kitsbow will allow us to continue growing production to meet our future revenue targets, and is part of Kitsbow's commitment to rebuilding the town of Old Fort, NC in an equitable and financially profitable way. This project is slated to begin in 2023.Our Benefit Corporation ValuesSustainability and environmental stewardshipThe development of our communityQuality of life for our employees Inspiring modern methods for apparel manufacturing in the U.S.We Are Diverse 50% of our leadership is female or non-binary; 50% of our Makers are male or non-binary. Sadly, this is radical for a company in the apparel/textile industry.We practice inclusive hiring, including for Academy students. When Garments Are Sewn Here, Most of the Money Stays Here98% of the apparel sold in the U.S. is made elsewhere.Most people don't recognize that when they purchase apparel made overseas, how little of their purchase remains in our economy.Kitsbow sells a carefully designed 'technical tee' suitable for biking, hiking, running, and other activities -- and so do many other outdoor apparel brands. The Kitsbow tee is priced at $69.00, which is comparable to other premium outdoor apparel brands.We're Making Apparel In A New WayOne-Piece-Flow minimizes waste, and is a more sustainable way to make clothes.Each garment is made one at a time, in a flow through the production floor. Not only is this the modern way to manufacture most consumer goods, from automobiles to electronics, but it is far more efficient.It also powers Kitsbow to offer 'Made to Order' since we can build any size or fit, in any order (we do group together each color, to minimize thread changes on the machines).The method also respects the human -- our Makers fine-tune the flow constantly, and rarely do the same action over and over. This minimizes repetitive stress syndrome and avoids the monotony of typical production work.Made to Order Means Real ChoiceCustomer Buys First… then we makeNo unwanted production inventory (that ends up in the landfill)Customer gets exactly what they want4,600 Active SKUs = Fit, Size, and ColorA typical production shift will make a broad variety of sizes and colors of the same garment, which is one of the requirements of Made to Order. Kitsbow has already made 12,000+ garments in 2022, in a mix of sizes and colors as ordered by customers.Although the wait was weeks long in 2021, currently most orders are fulfilled within 1 week as the capacity of the factory has increased due to efficiency improvements and new graduates from Kitsbow's Old Fort Industrial Sewing Academy.Sustainability More Important Than EverThe U.S. throws away up to 11.3 million tons of textile waste each year—around 2,150 pieces of clothing each second.The apparel industry uses 93 billion cubic meters of water each year — enough to meet the consumption needs of five million people.Around 20% of all wastewater worldwide comes from fabric dyeing and treatment.Apparel’s carbon emissions are more than all international flights and maritime shipping combined.87% of clothing is incinerated or put in a landfill.We Also Drive Sustainability In Our PackagingEverything is 100% Consumer Compostable:Retail bagHang tagWarranty cardShipping BoxShipping BagShipping Label on BoxEven the Ink, Glue & TapeWhat's Next? How Will We Use The New Capital?Kitsbow faces two challenges in the near future. We need to attract new customers, and we need to improve our profit margin on each garment we make.Progress on both of these challenges is a requirement to reach profitability.We'll use the new capital for marketing programs, where we have spent very little since the Pandemic. Marketing will help us attract new customers, and that will help support our revenue targets.We'll also use the new capital to keep operating while our manufacturing efficiency improves from the current 31% product margin (as of the first half of 2022) to the target 45% we need for our direct-to-consumer business model. We estimate it will take 15 months to do this.Our People Are The BrandRespect the MakerLower workforce turnoverRobust local communityContinual innovationWealth creation through ownershipOur emphasis on our people was established on the first day we opened the factory in Old Fort, and it continues to this day. It is literally why we are here. Experience Kitsbow IRLKitsbow built the Old Fort Ride House in 2020 to provide healthy food options to employees & the public, as Old Fort was (and is) a 'food desert'. We now provide breakfast and lunch to locals, visitors, and ourselves -- including the only vegan options in town!It is your ‘base camp’ when exploring the Pisgah National Forest. Our apparel, good food, bike shop… and more.This is the interior of the Old Fort Ride House, combining a cafe, bike shop, a visitor information center, and of course, our apparel.Factory tours can be scheduled with at least 48 hours notice here. We love to show how our team creates the magic of Made to Order.Thank you! ## FAQ 1. **David- I’m interested. Can you please clarify investment terms? Thsnks jon Sarver** - Great question Jon, since it isn't crystal clear on the website, and the definitive documents won't be available until the campaign is actually live (this is the Test The Waters phase, where only reservations can be recorded -- money cannot actually be invested yet). When we go live, then you'll want to look at the actual contract before confirming your investment. The structure is remarkably simple, a common form of Revenue Share. The investment is recorded as a loan to Kitsbow, and is repai... 2. **This is very interesting and I like what Kitsbow is doing in Old Fort. Will full financials be disclosed when this goes live? Is other debt already in place, and where does this issue rank in priority? Also, I see a fee charged by wefunder to investors. Can you or wefunder con...** - Good questions. Yes, financials will be disclosed when we go live, but they're being reviewed first so we can't give a date on that yet. Yes, there is other debt in place, and it has priority. As with some other revenue share agreements, there is effectively very little collateral. Kitsbow is charged the fee at the time of investment, only once. 3. **Hi David / Kitsbow Team, this is very exciting. A couple of questions on top of the answer you gave Jon Sarver, mostly around risk assessment - (1) In the very pessimistic scenario where revenues are significantly lower than projected, what happens if the last payment #24 does...** - Jack, great questions. The min is 300k and the max is 1m. Based on the response in the first 48 hours we are anticipate it will fill, but of course who knows. The contract will be available for your inspection when we file, so all discussion of terms will lock then. As drafted, balloon payment would be due on the last payment if we haven’t repaid the capped amount. We are told this is typical and customary. 4. **It looks like the 2x pool was increased from 300K to 400K. Can you elaborate on why this was done? (it doesn't seem as though that is beneficial to those who were in the first 300K) Adding an edit since it looks like I can't respond to your response. I think you are wrong that...** - A smart question Anthony. We increased the pool today, because the intention all long was to involve our loyal customers in the early bird phase. We still have customers just now hearing about it, and wanting to invest. So we increased the pool. It has no effect on the investors in the first 300k as their payback remains the same. 5. **Very excited to be a part of such a great company that is doing the right thing for the community/environment/people/RIDERS! Great information below. So I have one question. Is it safe to say that all debtors (us) will be paid in full (2.0x first 400K of us; 1.75 other 600K of...** - That's a great question, and yes, under the proposed terms the loan is paid in full (with the capped return). A debt is a debt -- it must be repaid. And yes, if revenues are higher than planned (30% annual growth) then it is paid back before payment 24, and if revenues are less than planned over those six years, then there is a balloon payment at payment 24. ## Team - David Billstrom (CEO, Owner) - Jessie Inglis (Director of Production, Owner) - Manya Mankiewicz (Product Design, Owner) - Dustin Donovan (Director of Operations, Owner) - Steven Kidwell (Director of Logistics, Owner) - Pj Mears (Director of Learning, Owner) - Beth Donovan (Merchandising Team Manager, Owner) - Katherine Ehrlichman (Community Manager and Marketing Team) - Paul Blum (Board Member, Advisor to Kitsbow, Owner) - Incolo (Business Advisor) ## Q&A - Q: I know the past few months must have been difficult, just curious if there are any updates? I saw in Black Mountain News that Fire-Dex has set up operations in the space (https://eu.blackmountainnews.com/story/news/2023/08/09/fire-dex-to-begin-manufacturing-in-old-fort-in-former-kitsbow-facility/70524750007/). - Q: 3 months later- any news? - Q: Any news on potential funding? I noticed today the Kitsbow website is now dead :( - Q: Thank you very much David for your answer, I would like to say that I do really like Kitsbow as a brand, its product and its mission. Please do not take this negatively, I'm just trying to understand the risks associated with the investment, but i do feel that the investment pitch is omitting the clear plan and path to profitability. I think the focus on the sales is well placed, but i think that the pitch should focus on the decrease of the overhead and streamlining the operations and specifics around it. Without those two things addressed it might be little hard for the investors to see the end of the tunnel and viability of the investment. To illustrate that, me as an investor i have access to the 2020/21 financials only where i can clearly see that your revenue does not even cover the overhead (with overhead payroll being the biggest portion) so without mentioning in the pitch, how you address the large overhead, i have to think that it will stay constant. In that case, even 8M in sales (3 times of 2021) will not bring Kitsbow to profitability when you account for 50%GM, the 4.5% of revenue paying back the debt and 2021 level of overhead. So when you guys mentioned achieve profitability within 15 months it does not add up, because that would take about 4 years at 30% growth to get to the 8M in revenue which is breakeven at best. Thank you for your time. - A: Jakub, no negative implication taken! Yes, it would be better to go into more detail about overhead reductions but frankly we've made the decision to focus on the sales campaigns and new marketing advances, as that is truly the only way out of the woods of unprofitability, whether the number is $4m or $8m in sales. I should also mention that this is an impact investment, not a huge return -- in fact, the return is capped. It is high risk, as apparel is a rugged business and Kitsbow has yet to prove it can get to profitability. I will also add: servicing the revenue share requires that a) we remain in business with some revenue; b) can pay back the total capped amount within 6 years. Which is well within the 4 years you just calculated. It does not require that we reach profitability. - Q: I am considering investing as I believe in Kitsbow's mission. What do you project Kitsbow will need in monthly gross revenue and estimated profit margin to be break even? Why has COGS increased to $178,000 per month the past 3 months and when do you project it to decrease? How many hourly employees do you have and what is the average hourly pay with benefits? I am trying to understand why the burn rate of $188,000 is so high and the plan to lower it-quickly? Based upon my rough estimate, it seems that even if revenue were to double per month if costs and expenses do not stabilize or decrease significantly, profitability is going to be difficult? I guess I am struggling with $2.0mil plus losses when the company is only selling around $2.7mil a year?? Is a significant portion of the extra expenses from the attorney's fees discussed in the docs? When you mention profitable in 15 months, is this based upon the Wefunding investment included in the projection? Thank you. - A: Good questions David, and difficult to answer succinctly without a deep dive into the business. For context, the Reviewed Financials only cover the period of 2020-2021 when the previous investors owned and controlled the company. This is an SEC requirement, but we tried to explain that not only were the operating assumptions different (ridiculous sums of money for attorneys in both years, which of course we no longer do) but the 2020 business was nearly exclusively face masks, just one of many exceptional factors that are no longer in effect in 2022 and forward. Please check the sales chart here on wefunder to see the dramatic difference. Prior to Q4/2021 shipping times were 4 to 12 weeks (or even longer) as long-time customers can attest. This skewed recognized revenue significantly, so the 'sales' chart doesn't align with the recognized revenue (when sold items actually shipped). Also, to our surprise, GAAP financials (as utilized in the 2020-2021 reports) place all shipping costs in Expense, rather than COGS which is where we historically report and monitor the quite significant shipping and returns (free shipping!). So again, even those familiar with the details of the Kitsbow business model would struggle to understand the factors that will enable profitability. Although optimistic, we stick to the 15 month scenario. Yes it requires the full $1m financing here, and likely to require one more before we reach the finish line. Hourly employees are paid $17 to $25 an hour, with 100% health care, and we expect these expenses to go up... although we expect the very significant wage expenses for paying students $15hr to learn to sew to go down (more than $500k/annually in 2020-2022). Efficiencies increase, paying for students decreases, and we should hit profitability... assuming that 30% increase in sales, annually. Hopefully that illuminates a few of the many factors that we're managing. In full candor and transparency, we don't know if we'll make it, but the team has been making steady progress on every single one of these factors throughout 2022. This is definitely high risk, and an opportunity really only suited to Impact Investors that want to make a difference *and* a return. - Q: So I'm not well versed on this type of investing do I eventually get shares out of my investment or only my money back ? - A: Great question, because this type of investment has been around for a long time but isn’t usually offered… so you’re not the only one wondering. Because the employees own the company, they don’t want to dilute their shares with any more equity investments. And because as a benefit corporation Kitsbow exists for its community of customers, employees, and Old Fort — the team hopes never to sell the company to a bigger brand. But that means it would be difficult for traditional investors to get liquidity from their equity. The Revenue Share means the company is obligated to pay 175% of your investment back over 6 years. Does that help? - Q: We have been reviewing the loan documents and financial statements prior to confirmation - with the direction early bird folks had 48 hours to confirm. It appears that more than 400k has been confirmed prior to 48hrs, I assume by early bird investors increasing their initial commitment. Am I correct in understanding those that did not confirm their initial investment fast enough have now been bumped into the 1.75x? - A: Correct. Investors acting briskly in the first 24 hours snapped up the $400k threshold. I understand that the SEC requirements are that... once the Form C is filed... then it has to be public. So anyone who visited our page on the Wefunder platform yesterday afternoon... could commit to an investment (even without a previous reservation) and fall into the Early Bird terms. It doesn't seem fair to me, that reservations made more than a month ago... were not guaranteed the Early Bird terms, but apparently these are the rules. - Q: Hi David, just a quick note. I'm part of Cactus Outdoor, a like-minded organization to yours on the other side of the world in New Zealand. For 30 years we've been pushing against the tide and it's super hard work. I suspect though that Kitsbow has some advantages that makes its domestic manufacturing ambitions more viable. Firstly, a domestic market that is roughly 100 times the size of ours and secondly a labor supply that you can tap and that is interested in learning the craft of sewing. I'm super interested to watch your journey from afar and wish you all the very best - Q: And if my "original" reservation was before then $400k is met and I edit that amount, will it be at the 2.0x or 1.75x since we are now over the $400k threshold? - A: To be candid, we're going through the process for the first time, but I'm told that the inclusion in the group with the better terms is when you answer the request to 'confirm' the reservation. Anyone who does not confirm their reservation will create space for larger amount within the 2.0x group. - Q: It looks like the 2x pool was increased from 300K to 400K. Can you elaborate on why this was done? (it doesn't seem as though that is beneficial to those who were in the first 300K) Adding an edit since it looks like I can't respond to your response. I think you are wrong that it does not impact the other investors in the first 300K. If you're reserving 4.5% of revenue, and that is being shared by a group with 2X potential return vs another group at 1.75X, then increasing the size of the 2X group without changing the % of revenue will incrementally slow the return to the 300K group, all other things being equal, and it increases the total revenue needed for all participants to get a full payback. - A: A smart question Anthony. We increased the pool today, because the intention all long was to involve our loyal customers in the early bird phase. We still have customers just now hearing about it, and wanting to invest. So we increased the pool. It has no effect on the investors in the first 300k as their payback remains the same. - A: Reply 2: Anthony, the payback commitment from the company is the amount shown. Whether the payback multiple is 2.5x or 1.0x it is an obligation of the debt for the amount borrowed. 4.5% is the calculated amount that the company is required to repay out of revenue each quarter. The 4.5% factor is calculated on the projected forward revenue of the company over 6 years, which of course no one can know. We have a plan, but no one can know. The Revenue Share agreement requires that the capped amount, whether 2.0x or 1.5x is repaid. The speed with which the amount is repaid is of course the combination of the factor (4.5%) and the actual revenue in each quarter. So if revenue is better than expected, then the amount is paid off faster than 6 years. If the revenue is less than expected (or the payoff factor is higher for a % of the investors, say $400K at 2.0x vs $300K at 2.0x) the RATE at which it is paid off is slower. But the obligation remains the same. At the conclusion of the 6 years (24 quarterly payments) the amount must be paid in full. So yes, the speed will decline but the total payback should not. - Q: Hi David / Kitsbow Team, this is very exciting. A couple of questions on top of the answer you gave Jon Sarver, mostly around risk assessment - (1) In the very pessimistic scenario where revenues are significantly lower than projected, what happens if the last payment #24 doesn't pay back the principal? Does the loan officially terminate where we can write off the investment loss? (2) Since payment is tied to 4.5% revenue, is there a maximum cap to how much you are raising? Is there is minimum to how much you wish to raise? (Both min and max needed to bracket rate of annual return.) -- Thanks! Jack - A: Jack, great questions. The min is 300k and the max is 1m. Based on the response in the first 48 hours we are anticipate it will fill, but of course who knows. The contract will be available for your inspection when we file, so all discussion of terms will lock then. As drafted, balloon payment would be due on the last payment if we haven’t repaid the capped amount. We are told this is typical and customary. - Q: This is very interesting and I like what Kitsbow is doing in Old Fort. Will full financials be disclosed when this goes live? Is other debt already in place, and where does this issue rank in priority? Also, I see a fee charged by wefunder to investors. Can you or wefunder confirm that this is only charged at investment and that there is no fee on repayments (wefunder.com does not address this in their FAQs). - A: Good questions. Yes, financials will be disclosed when we go live, but they're being reviewed first so we can't give a date on that yet. Yes, there is other debt in place, and it has priority. As with some other revenue share agreements, there is effectively very little collateral. Kitsbow is charged the fee at the time of investment, only once. - Q: David- I’m interested. Can you please clarify investment terms? Thsnks jon Sarver - A: Great question Jon, since it isn't crystal clear on the website, and the definitive documents won't be available until the campaign is actually live (this is the Test The Waters phase, where only reservations can be recorded -- money cannot actually be invested yet). When we go live, then you'll want to look at the actual contract before confirming your investment. The structure is remarkably simple, a common form of Revenue Share. The investment is recorded as a loan to Kitsbow, and is repaid quarterly over 6 years (24 payments). The payments vary, since they are calculated each quarter based on the actual revenue the company earns. The payments stop when the entire invested amount has been repaid, plus 75% more (100% more for those who invest in the first $300,000 of this raise). Kitsbow is obligated to set aside 4.5% of revenue every quarter, and pay this to the investors. So it is not a fixed amount in each payment, so it is possible that if revenues are higher than expected... the total return will be paid back faster than 6 years. If the revenues are lower than expected, then Kitsbow will have a balloon payment to make to investors on the last payment to make up the full amount. So for someone investing the minimum, $100.00, they will get back $175.00 in 24 payments. You can calculate the rate of return on that over the time period, and that will be attractive to some people. - Q: Will you be making payments based on 2023 Q1 revenue? I understand that the fund just closed at the end of Q1, but I ask because you did a "rolling close" on the early funds from investors sometime in December 2022. - A: Alec, you should review your copy of the Revenue Share Agreement. The period starts Q2, and the first payment is due August 1, for all participants regardless of the closing date for each investment. - Q: In light of yesterdays unfortunate announcement...what happens now? Will Kitsbow send out tax documents so investors can claim the losses? Unfamiliar with the process since this was our first (and probably last) time getting involved with something like this. Edit: or does the bad debt just get reported on Form 8949? - A: Mark, thanks for reaching out (it is ridiculously busy here in Old Fort, apologies for the speed of reply). We are certain you all are wondering about your investment. While Kitsbow will stop production on (or about) April 7, we ourselves don't know what comes yet. The company is not out of business, in fact we are making and selling clothes right now! And our announcement triggered inquiries from all over the world. Our leaders are resolved to not do a deal with any future investor, new owner, or acquiror of the brand unless they take responsibility for the Revenue Share contract you have with Kitsbow Apparel. In other words, it is way too early to say what happens or is happening with your investment. As we have definitive news, we will post it. Thanks, David.