Entrepreneurs Linsey Fuller and Lili Yeo pitched their baby apparel business during
If you’re short on time, here’s a quick overview of what happened to Goumi after
Linsey Fuller and Lili Yeo appeared on
|Accepted deal for $1 million as a line of credit at 9%, plus 10% equity
|$1 million for 30% equity
Shark Tank Goumi Update
- Entrepreneurs: Linsey Fuller and Lili Yeo
- Business: Baby mittens and boots that stay on
- Ask: $1,000,000 for 8% equity
- Result: $1,000,000 as a line of credit at 9% and 10% equity
- Shark: Kevin O’Leary
Founders of Goumi, Linsey Fuller and Lili Yeo, met at a Chinese preschool over eight years ago. Both moms marveled at the fact that baby booties and mittens never stayed on!
Because babies can wriggle out of them easily, this often leaves them with scratches on their faces, ankles, and legs. So they created Goumi’s flagship product, a baby mitten with a double closure mechanism that stays on through flailing and squirming.
They have taken this design to booties as well, and released a sleeper that turns into a sleep sack with just a few snaps. Further, they sell mittens and booties individually at a high-profit margin.
Mittens sell for $24 retail, and the boots sell for $18 retail, but they also sell a starter ‘coming home’ bundle for $102. Additionally, they are in a few boutique stores, but they also sell direct-to-consumer on their website.
The sharks complement the packaging, saying that it’s smart and looks great. However, they get a little more cautious when Lili eventually reveals that they’ve been in business for eight years and have done $5.2 million in lifetime sales, with only 15% of that being profit.
Their original ask of $1 million for 8% equity puts the company at a $12 million valuation. Kevin O’Leary, as well as Mark Cuban and Daymond John, take issue with this valuation, saying it’s a ‘bit rich’ for their taste.
The entrepreneurs eventually reveal that the valuation is so high because that’s ‘what they can raise,’ which doesn’t sit very well with most of the sharks.
On the other hand, Lori Greiner thinks the products are too expensive. The starter kit is over $100, and parents will have to buy several additional pairs to have enough mittens and booties for their babies.
Lili assures her that this was the perfect price point when they tested in online sales. Despite this, Lori is out. It’s a quality product, but she doesn’t like the price.
Mark has an issue with the packaging and presentation. It’s good packaging, but the store kiosks don’t really tell the story or introduce the product.
Barbara Corcoran compares Goumi to a company she has already invested in, Grace and Lace. They have done about three times the sales that Goumi has in the same amount of time.
That’s because they do more than just baby products, so they spend less time trying to find new customers. Ultimately, it’s too much for her, so she’s out.
Daymond, on the other hand, makes an offer of $1 million for 30% equity.
It’s time for Kevin to step in. He invests in a lot of companies that could funnel into a baby business, so he’s interested. He also offers $1 million as a revolving credit line, but with an interest rate of between 9 and 10%, plus 10% equity.
Instead of accepting right away, they counter Daymond’s offer, and ask him to lower it to 15% equity, but he refuses. Even though they apparently have a line of credit they haven’t used, they eventually accept Kevin’s deal.
Was this a smart move? Keep reading our
We have good news to share in our Goumi update. After the episode aired, online sales skyrocketed for the company. In 2023, annual revenue is reported to be around $2 million.
Further, sales held strong during the pandemic, and they also donated a percentage of sales to COVID-19 relief efforts.
Since the show, Goumi has vastly expanded their product line, and they also have a resell program. However, in April 2023, the company put out a recall on their children’s robes because they fail to meet the federal flammability standards for children’s sleepwear, posing a risk of burn injuries to children.
If we get any more news on a Goumi update, we will let you know!
You can find the other company updates from Season 11 Episode 17 here:
For even more on companies and products, be sure to stop by our Season 11 products page!
Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!