Knack

Bags by, and for, mobile workers

Knack

Bags by, and for, mobile workers

Barrington, RI
Fashion & Apparel
Consumer Products
Knack is a brand created by mobile workers for mobile workers. Our patent-pending backpacks let you easily go from work to play and back again with just one bag.

$103,567

raised
157
Investors
$6.54M
Valuation
$0.80
Price per Share
$248.00
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
Reg CF
Offering

$103,567

raised
157
Investors
$6.54M
Valuation
$0.80
Price per Share
$248.00
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
Reg CF
Offering

Bonus Rewards

Get rewarded for investing more into Knack

$248+
Investment
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.
$500+
Investment
Welcome to Knack Incentive
Invest $500 and receive early access to all new products before they are released to the public as well as an individualized discount code for 50% off your first Knack order.
$750+
Investment
Free Knack Accessory Bundle
Invest $750 and receive a free Knack accessory bundle including Large Packing Cube, Medium Packing Cube, Knack Water Bottle, Knack Travel Candle, and Knack Margarita Kit.
$1,000+
Investment
Free Leather Knack Pack
Invest $1000 and receive a free limited production napa leather Knack Pack (while supplies last).
$5,000+
Investment
10% Bonus Shares
Invest $5000 or more and receive an additional 10% bonus shares

Reasons to Invest

Our executive team has multiple exits under their belts and has extensive backgrounds in brand development and digital marketing for some of the most famous accessory and bag companies in the world, including Tumi and Coach
We’ve shipped over 9.5K units so far with over $1MM in sales in the first 17 months of shipping
With the recent growth of the mobile workforce, our products sit at the cross-section of multiple massive market segments

Overview


We launched Knack in November 2018 to help anyone who has ever experienced the hassle of juggling multiple bags during their day. Our unique collection of stylish, multiple-purpose bags lets you use just one bag to carry all the different aspects of your life. With over 9,500 units shipped and over $1MM in sales in the 17 months since launch, we believe that Knack will truly change how people live their lives while, at the same time, upending the $31B US bag market (market data as of 2018).

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The Problem


Urban Professionals want much more than the average single-purpose bag can provide

Everyone has experienced the hassle of carrying multiple bags as they move through their busy day. Work bag and gym bag; work bag and travel bag; work bag and diaper bag; the list is endless (and exhausting). We launched Knack in November 2018 with the simple idea of making life easier by eliminating the need to own and carry lots of single-purpose bags. 


In our view, since legacy bag brands have always been focused on single-purpose bags in everything they do, from product development to marketing and distribution, consumers have had to accept buying and using a specific bag for each of their various carry needs. Therefore, they’ve been forced to carry more than one bag as they move across different activities during their day. Everywhere you look you see people carrying work bags, gym bags, backpacks, laptop bags, roller-bags, carry-ons… at the same time!


Not only is carrying multiple bags at the same time a hassle, but it makes it extremely challenging to keep your hands free for your phone, your coffee, or even your child's hand. Due to the massive inconvenience presented by single-purpose bags, 45%* of urban professionals would not recommend their primary bag to a friend. 


*This data is based on the analysis of proprietary research Knack conducted with a representative sampling of US consumers.


The Solution


A brand for mobile workers, by mobile workers

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Knack’s patent-pending One Bag Life concept is a game-changer. Finally, the shift from work to personal life (and back again) can be totally seamless.


We popularized the first intentionally-designed, multi-purpose bag concept: a collection of daily-use, professional laptop backpacks with a separate, hidden travel compartment that expands and packs like a suitcase when you need it and zips away when you don't.


Our brand gives urban professionals the ability to move seamlessly from their work life to their personal life and back again with only one bag; in other words, “One Bag Life”.  Our collection of add-on accessories, such as expandable organizer cubes, allows our customers to further customize their Knack Packs and enjoy a simpler life on the go.


The Market


Consistent market-wide revenue growth over the last decade

Over the last few years, the US market for all types of work and travel bags has grown at a swift, sustainable pace moving from around $18B in 2010 to over $31B in 2018. We believe that almost one-third of this $31B market consists of single-purpose bags that are frequently used at the same time as other single-purpose bags. As a result, we think that well-designed, multi-purpose bags could replace these products and ultimately be a $10B opportunity.


Our category-defining brand is poised to fuse and soak up market share from multiple single-purpose market segments, including travel/sport, luggage, business cases, and backpacks. Particularly as flexible work options increasingly become the norm, and the average professional becomes even more ‘on-the-go’, we expect demand for all-in-one, multi-purpose bags to grow rapidly in the near future.

The Knack management team used publicly available source data combined with their estimates of specific category and use case volumes (based on over 35 years in the luggage, bag and accessory industries), to estimate the volume of currently-designed "single-purpose" bags that could be replaced by "multi-purpose" bags.

Our Traction


Over 9,500 units and over $1MM in sales in the first 17 months of shipping

Since we launched our website, we’ve seen over 600,000 consumer sessions from across the globe, we’ve shipped over 9.5K units, and we’ve driven over $1MM in sales in our first 17 months.


We’ve gained thousands of new followers on Facebook and Instagram, and garnered impressive ratings from owners:


  • 4.8/5 on Knackbags.com

  • 4.8/5 on Trustpilot

  • 4.8/5 on Facebook


We’ve seen that high levels of customer satisfaction also translate into high levels of repeat purchases. Since launch, 17% of our customers came back to Knack to buy another Knack product. In addition to a focus on customer satisfaction, we drive repeat purchasing through frequent product updates as well as through an expanding collection of companion accessories that help make the Knack Pack work even better.


What We Do


We design proprietary bags that make life’s transitions easier

The days of stepping out your front door with multiple bags are over. Knack makes it easier for urban professionals to work, travel, and play where they want, and how they want, using only one great, multi-purpose bag.

The Business Model


Our D2C model focuses on making every consumer profitable

We focus our marketing and distribution efforts on building two main revenue pipelines.


Direct-to-Consumer: We sell to consumers in the US and Canada exclusively through our website - knackbags.com. We focus on efficiently driving traffic to our site through growing non-Cost Per Click digital marketing activities which have helped steadily drive down our average Customer Acquisition Cost since launch. With average customer revenue of $259.93 in 2019, our marketing strategy increased our Customer Revenue/Customer Acquisition Cost from 1.23X in Q1 ’19 to 2.73X in Q4 ’19.

Corporate Gift and Incentives: The US Corporate Gift market accounted for 22.3% of our 2019 gross revenue. The US Corporate Gift market is estimated to be $24.7B. Since launch, we’ve sold customized Knack products to NFL teams, Silicon Valley companies, and Fortune 50 corporations. We’ve also partnered with a major Corporate Gift Distributor to simplify execution in this channel.

How We Are Different


Committed to One Bag Living

First and foremost, our brand is dedicated solely to creating the best multi-purpose bags in the world. Our patent-pending products solve urban professionals' daily carry needs in a uniquely different, and better, manner than bags on the market today. Additionally, our team has grown premium brands and developed successful digital marketing strategies for some of the most recognizable bag and accessory companies in the world (like Coach, Tumi, and eBags). With this experience, we believe we are well-positioned to execute a winning digital marketing strategy with a winning brand concept.

The Vision


Changing how people think about carrying their lives with them every day

We see a world where urban professionals use One Bag that eliminates the need to carry two or more bags as they move back and forth across their work and personal lives on a daily basis. We see this change not just in the US but across the world.


Tens of thousands of consumers visit our website from across the globe in spite of focusing our marketing efforts solely on the US. We’ve also had global consumers buy Knack products in the US and ship them through freight forwarders to their home countries. We know that our concept is global, so a key future growth driver is utilizing major key international market distributors, who we’ve worked with at past companies, to bring the Knack brand to consumers outside the US and Canada.


The B2B market is also an area for expansion that will allow us to more rapidly scale our consumer brand experience. We see increasing numbers of companies interested in outfitting their frequent-traveling executives with co-branded Knack Packs. To date, we’ve sold Knack bags to a wide range of organizations from NFL Teams, to established Silicon Valley companies, to Fortune 50 corporations.

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Our leadership


Experts in the accessories market and eCommerce

Our fully remote team consists of experienced start-up veterans as well as senior managers from Fortune 100 companies. Founder and CEO Chad Mellen is an experienced executive with two exits under his belt and a track record of managing growth for premium accessory and luxury brands.


Chief Digital Officer Keith Bristol has held executive roles across a number of eCommerce consumer brands such as eBags, Tumi, and UsingMiles. He has helped lead multiple startups to high levels of growth and exits.


Why Invest


By changing how people carry, we’ll revolutionize a market

We see a world where it’s no longer necessary to carry multiple bags at the same time just to go about your daily life. Although we’re still a young brand, professionals love our concept and, most importantly, our multi-purpose products. Our team has years of experience growing global accessory brands across diverse channels and is using that experience to make Knack synonymous with thoughtfully-designed, multi-purpose accessories. We need your support to help us continue to create innovative new bags and accessories as well as to increasingly spread the word about the Knack brand


Please join us in our mission to make it easier for people across the world to carry their lives with them every day.

In the Press

GQ
January 1, 2017

The Best Travel Backpack for Business Travelers

Men's Journal
January 1, 2017

Problem Solved: Welcome To Your One Bag Life

Carryology
January 1, 2017

The Knack Pack 2.0: New and Improved

Digital Trends
January 1, 1970

Business chic: Best laptop bags for 2020

Forbes

Very Best Luggage Of 2019 - For Every Trip And Type Of Traveler

Foders Travel

This Is the Best Backpack for When You Only Need a Backpack but Don’t Want to Look Like a Backpacker

Offering Summary


Company

:

Knack Inc.

Corporate Address

:

200 Middle Highway, Barrington, RI 02806

Offering Minimum

:

$10,000.00

Offering Maximum

:

$1,069,998.40

Minimum Investment Amount

(per investor)

:

$248.00











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

12,500

Maximum Number of Shares Offered

:

1,337,498

Price per Share

:

$0.80

Pre-Money Valuation

:

$6,541,370.40











Voting Rights of Securities Sold in this Offering

Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.

*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.

Investment Incentives and Bonuses*

Time-Based Perks

"Thank You" Early Bird Bonus

Invest within the first 48 hours and receive an additional 20% bonus shares.

Special Early Bird Bonus

Invest within the first week and receive an additional 15% bonus shares.

Early Bird Bonus

Invest within the first two weeks and receive an additional 10% bonus shares.

Amount-Based Perks

$500+ | Welcome to Knack Incentive

Invest $500 and receive early access to all new products before they are released to the public as well as an individualized discount code for 50% off your first Knack order.

$750+ | Free Knack Accessory Bundle

Invest $750 and receive a free Knack accessory bundle including Large Packing Cube, Medium Packing Cube, Knack Water Bottle, Knack Travel Candle, and Knack Margarita Kit.

$1000+ | Free Leather Knack Pack

Invest $1000 and receive a free limited production napa leather Knack Pack (while supplies last).

$5000+ | 10% Share Bonus

Invest $5000 or more and receive an additional 10% bonus shares

The 10% Bonus for StartEngine Shareholders

Knack Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $0.80 / share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $80. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.

Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.

*All perks occur when the offering is completed.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments. Salary payments made to one’s self, a friend or relative.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$908,630.00 USD
$741,672.00 USD
Cash And Cash Equivalents
$414,667.00 USD
$468,336.00 USD
Accounts Receivable
$4,229.00 USD
$13,081.00 USD
Short Term Debt
$139,198.00 USD
$91,078.00 USD
Long Term Debt
$1,224.00 USD
$876.00 USD
Revenues And Sales
$686,288.00 USD
$109,311.00 USD
Costs Of Goods Sold
$277,589.00 USD
$40,129.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$784,643.00 USD
-$449,410.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

We passed $100,000!

20 hours ago

Please help us hit $150,000 by sharing with 2 friends.

We did it. We raised $100,000 from over 150 investors! We appreciate all the support from everyone who invested. 

Given our success, we decided to extend our campaign and we need your help getting to the next milestone of $150,000. Please help us by sharing this link to the Knack investment opportunity with 2 friends: startengine.com/knack-bags.



Notice of Material Change in Offering

9 days ago

[The following is an automated notice from the StartEngine team].

Hello! Recently, a change was made to the Knack offering. Here's an excerpt describing the specifics of the change:


Issuer extended length of campaign.


When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.

Notice of Funds Disbursement

25 days ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Knack has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Knack be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Sales and Financial Update

about 1 month ago

Knack Inc. is pleased to announce unaudited, preliminary financial results for the past three month period of June through August 2020.

Highlights include:

  • Net Revenue grew by 19% versus same period last year in spite of the continuing impact of COVID-19 on workers, commuters and travelers.
  • Gross Margin expanded by 560 basis points due to consumer programs driving favorable product mix.
  • Revenue grew while Operating Expenses were reduced by -23% versus prior year.  
  • Operating Loss was 37% lower than prior year leading to a material reduction in cash burn.

We passed $75,000!

2 months ago

Please help us hit $100,000 by sharing with 3 friends.


We’re excited to announce we recently passed $75,000 from over 100 investors in our campaign! Thank you for helping make that happen. We still need your help getting to the next milestone of $100,000. Please help us by sharing this link to the Knack investment opportunity with 3 friends: startengine.com/knack-bags.



Knack Corporate Sales Channel Update

2 months ago

We’re pleased to let investors and potential investors know that our corporate channel recently landed a $45,000 customized Knack Pack order for a large company that will ship at the end of September (unfortunately, we can’t share their name right now).  This one order equals over 26% of our total 2019 corporate sales!

Last year, Knack’s corporate sales channel represented over 20% of the company’s total gross sales and we're really excited that the momentum we experienced in this channel in 2019 is continuing in 2020.

With your support of our campaign, we will continue to drive great results, like these, in this channel (and others) in the years ahead. 

Welcome to Knack and Thank You

3 months ago

Hello everyone, 

 

Thanks so much to everyone who has invested, shared, and engaged with us since the beginning of this launch. We are thrilled that you share our vision to disrupt the bag market, and, more importantly, improve how people all over the world carry their lives with them on a daily basis.  

 

Over the next few months we’ll be giving updates on progress as well as giving you additional information on company highlights since we first launched. 

 

We thought we’d start today by sharing our story from a recent podcast interview. If you are interested in hearing directly from us on where the idea of Knack was born, why we are so passionate about making it easier to get from point A to point B without juggling multiple bags, or why we fundamentally want to flip the bag industry on its head, you’re in luck. We discuss all of those topics, and more, during our interview on the Baby Got Backstory podcast.

 

We hope you enjoy,


Show More Updates End of Updates

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