A backpacking trip in Southeast Asia inspired Joe Demin and Rachel Connors to start selling Thailand-made hammocks. These hammocks are handmade by communities in rural Thailand, and the profits help them improve their lives. Sharks usually love social causes, so what did they think of this one during Season 11? Keep reading our
Shark Tank Yellow Leaf Hammocks Update
- Entrepreneurs: Joe Demin and Rachel Connors
- Business: Soft, weather-safe hammocks made by women in Thailand
- Ask: $400,000 for 7% equity
- Result: $1 million for 25% equity
- Shark: Daniel Lubetzky
Yellow Leaf Hammocks had $860,000 in sales in the year before filming. They’d also partnered with Virgin Cruise Lines to provide hammocks for their ships, which was definitely going to benefit the company. The sharks were impressed, but Daniel Lubetzky really loved the product.
Daniel offered $1 million for 33% of the company. Joe and Rachel don’t like the equity that deal would cost them and the other hand, Lori Greiner offered $400,000 for 20% equity. The entrepreneurs attempted to counter both Daniel and Lori for $1 million at 25% equity, but Lori didn’t want to go to $1 million.
Daniel instead offered $500,000 for 25%, which they countered at $600,000 for 14%. This prompted Robert Herjavec to make an offer. He offered $400,000 for 15% equity, but they were still dealing with Daniel.
After they revealed that they wanted to raise more money in the future, Lori changed her offer again: $200,000 cash, a loan of $200,000, and fully funded purchase orders for 15% equity. Daniel, on the other hand, asked about the max equity they’d give up.
They answered that they would accept $1 million for 25% equity – and Daniel accepts! Was this a great deal for everyone involved? Our
The good news for our Yellow Leaf Hammocks update is that the deal with Daniel closed! However, the pandemic hurt their sales, as cruise ships weren’t operational. They pivoted to more direct-to-consumer sales through their website. Now, their annual revenue is about $1 million per year and will hopefully grow as the world gets back to normal.
Curious about the other products featured in Season 11 Episode 24? Find our company updates here:
Since this is the end of Season 11, don’t forget to check out our other company updates for the rest of the season. You can find them on our Season 11 products page.