Ep 5. Where's All The Cash Going?

In this episode of Project Runway: Fashion Startup, titled "Where's All The Cash Going?", the entrepreneurs face the tough reality of the fashion industry - cash flow. The investors, including fashion icon Rebecca Minkoff, tech expert Katia Beauchamp, and venture capitalist Gary Wassner, challenge the startups to examine their expenses and make tough decisions to keep their businesses afloat.

First up is Brooklyn-based brand Folly 101, founded by friends Taylor and Gina. They specialize in trendy, eco-friendly fashion, but their sales have been steadily declining. The investors question their high production costs and suggest they scale back their product line and focus on their best-sellers to save money. Will the Folly 101 team be able to make the necessary changes to stay afloat?

Next, the investors meet with David and Kym, the duo behind swimwear brand Acacia Coast. The investors love their unique designs, but they question the profitability of their business. David and Kym reveal that they are funding their business entirely out of pocket, but the investors stress the importance of securing outside investment to ensure sustainability. Can Acacia Coast secure the funding they need to take their business to the next level?

Then, the investors meet with Brandon, the founder of men's jewelry brand Hudson & Broad. Brandon has invested his own savings into the business, and the investors are impressed with his innovative product designs. However, they question his pricing strategy and advise him to lower his prices to increase affordability for customers. Will Brandon be willing to make this change and adjust his business strategy?

Finally, the investors meet with Sabrina, the founder of online boutique Seek & Swoon. Sabrina offers unique, handwoven home goods from around the world, but her sales have been stagnant. The investors question her marketing strategy and suggest she focus on targeting a specific customer base to increase sales. Will Sabrina be able to pivot her business and attract the right customers?

Throughout the episode, the entrepreneurs face tough critiques and decisions, but with guidance from the investors, they are able to make strides towards success. Who will come out on top and secure the investment they need to take their business to the next level? Tune in to find out on Project Runway: Fashion Startup.