Saturday, April 13, 2024

Outer After Shark Tank Update 2024 – Where Are They Now

Outer Before Shark Tank

Outdoor furniture is convenient for all sorts of occasions. However, nature’s harsh storms often tarnish furniture that has been left outdoors. Moving furniture at the end of each night to avoid damage is a hassle and could even make the entire idea of outdoor furniture pointless. That is where Jiake Liu and Terry Lin thought they could make an impact. They created the perfect solution for outdoor furniture, Outer.

Outer Before Shark Tank 1 Jiake and Terry founded Outer in 2017. Their outdoor sofas are made to withstand the harsh trials nature could throw at them. Each of Outer’s sofas comes with an OuterShell. The OuterShell is a contractible layer attached to sofas that protects furniture from harsh weather. OuterShells are easy to pack up and unfold, making enjoying the outdoors very convenient. Outer’s sofas are comfortable and sturdy thanks to their OuterShells, allowing each sofa to last for years without showing signs of wear.

What makes Outer unique is its showcase model. The company allows anyone who owns Outer furniture to set up their backyard as a showroom for future customers. Those who display their Outer furniture as a showroom for the company receive $20-$50 per visit. Customers have to book their visits ahead to set up a tour with an Outer furniture owner. Jiake and Terry believe that outdoor furniture should be tested outdoors rather than in the indoor showrooms commonly used by furniture stores.

Jiake had worked for many startups as a computer engineer; he used his previous experience to help launch Outer. Terry had been designing for Pottery Barns for over ten years; his connections allowed Outer to easily manufacture its furniture in China. The two came together in 2017 to reinvent outdoor furniture by creating Outer.

Jiake and Terry had had several funding rounds to raise money for Outer. However, the co-founders knew they needed more money if they were going to change how outdoor furniture works in the US. With a clear goal in mind, they went on Shark Tank seeking a business partner to help nationalize Outer and change outdoor furniture forever.

Outer on Shark Tank

Jiake Liu and Terry Lin were on Season 11 of Shark Tank to pitch their company, Outer. They were seeking $750,000 for a 4% stake in their company. They explained their product to the sharks, claiming it was as comfortable as a bed and durable as camping equipment. Outer boasted that the sofas are made with 100% eco-friendly materials. Jake and Terry demonstrated to the sharks their patent-pending OuterShell technology that protects the furniture from harm. They then explained their “showroom” business model, which impressed the sharks.

Outer Before Shark Tank 2 The three-seat sofa costs roughly $1,000 to produce and sells for $2,500. Kevin was interested in the high $18.75 million valuation for the company. The co-founders defended the valuation, saying that even though Outer had only been in business for four months, it had already made $800,000 in sales. They also stated that they recently closed a venture-capital investment round at a $13.5 million valuation.

Outer projects the year to end with $1 million in sales and the following year to have $5 million. Jiake owns 60% of the company, while Terry owns 25%, and the remaining 15% is owned by the factory (owned by Jiake’s family) that manufactures the sofas.

Daymond John believed the valuation was too high, so he was out.

Anne Wojcicki didn’t believe Outer could make any real impact on the market or environment, so she was out.

Mark Cuban commended the company’s efforts, but he didn’t think the risk was worth the reward, so he was out.

Kevin O’Leary wanted a piece of the business; he offered $750,000 for 20% of the company.

Lori Greiner also loved the idea but believed the company was too new. So she offered $750,000 as a line of credit for 10% of Outer in addition to a $20 royalty until $1 million is paid.

Hearing Lori’s offer, Kevin changed his offer to beat Lori’s: $750,000 as a line of credit for 5% in addition to a $20 royalty until $1 million is paid.

Jiake counter-offered Lori by asking for $750,000 as a line of credit for 4% and a $20 royalty until $750,000 is recouped.

Lori refused and made a final offer of $750,000 as a line of credit for 5% of the company and a $30 royalty until $1 million is paid.

Jiaki and Terry agreed, believing that Lori was a better fit for their company than Kevin.

Outer Now in 2024 – The After Shark Tank Update

Outer Shark Tank 3 Unfortunately, the deal Outer made with Lori Greiner did not close, and the company was forced to raise money elsewhere. In mid-2020, Outer raised $4.3 million. In 2021, they raised $10.5 million. The company continued raising money to develop its products further. Five months later, Outer raised another $10.5 million in a Series A funding round led by Sequoia Capital China. Just a few months later, still in 2021, Outer secured $50 million in funding during their Series B round, funded by major investors including C Ventures, Capital Today, Tribe Capital, and more.

The funding rounds solidified the company’s position in the outdoor furniture market, pushing Outer one step closer to reinventing outdoor furniture and how it’s sold. The $50 million raised from Outer’s most recent round of funding was used to develop new products for the company. This helped Outer expand from outdoor furniture to hotels, restaurants, tourist destinations, and more.

Outer’s success in raising money might’ve been attributed to the company’s massive increase in sales during the Covid-19 lockdown period. Outer saw an increase in sales of over 1100% since the company’s appearance on Shark Tank in 2019. The company had $1.1 million in sales in 2019. Whereas the following year, as a direct result of the pandemic, Outer had $12.2 million in sales.

Outer After Shark Tank 1

The pandemic caused most people to invest in their households. The lockdown made backyards and private outdoor areas the only ways for people to go outdoors. Jiake Liu commented that 82% of Americans during the lockdown had an avid interest in redecorating their households. Outer was able to solidify its brand in the industry after the massive increase in sales it had during the Covid-19 Pandemic.

Outer added more products to its line since the company’s appearance on Shark Tank. Outer now has outdoor tables, rugs, firepits, covers, and ottomans. The company has also expanded its range of materials; Outer chairs and sofas can now be found in aluminum steel and teak wood. The new materials allow Outer’s furniture to be even more durable and last for many years.

With a total of $65 million raised and over 500 showrooms in 49 states, Outer is on its way to revolutionizing the outdoor furniture market. Outer’s revenue in 2024 is $26 million. Outer is worth over $100 million in 2024. The company is expected to grow even further in the future and perhaps it will accomplish its goal by reinventing outdoor furniture as a whole. For more updates and information on Outer, visit the company’s website here.

Omar Sheikh Alard
Omar Sheikh Alard
Omar brings a love for novels and anything tech-related to the Gazette Review. Fun fact: he was the reigning chess champion at his high school.
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