Yellow Leaf Hammocks Before Shark Tank
Yellow Leaf Hammocks on Shark Tank
Joe Denim and Rachel Connors enter the Shark Tank in hopes of landing a $400,000 deal in exchange for 7% of their company, Yellow Leaf Hammocks. During their pitch, the couple explains how the hammocks came to be, as well as how they ended up starting the company. They told the sharks all about the Mlabri Tribe. Before concluding the pitch, the entrepreneurs immediately mention their numbers. They make it known that their sales were up to $860,000 in 2018 and that they can see themselves selling enough to reach $1.3 million shortly. With that in mind, their online sales and physical sales, such as with Virgin Cruise, are 50/50.
Already, the sharks appear to be impressed with the company, though on shark is immediately interested in investing the most. It was Guest Shark Daniel Lubetzky. Daniel steps in to offer Joe and Rachel $1 million for a 33% equity in Yellow Leaf Hammocks. While the duo likes the offer, they’re not too impressed with the equity, as it is higher than they’d like. Lori Greiner then speaks up to offer them $400,000 for a 20% equity. They were much more comfortable with the equity in Lori’s offer; however, Daniel offered to invest more money, so they’d like to try to counter with him first.
They end up countering Daniel and Lori to an offer of $1 million and a 25% equity, but Lori wasn’t up for offering $1 million. Instead, Daniel lowers his offer to $500,000 and a 25% equity in the company. Joe and Rachel counter Daniel once more for a $600,000 deal for a 14% equity. This is when Robert Herjavec becomes interested and offers the duo $400,000 for a 15% equity. Given that Joe and Rachel are still working with Daniel’s offer, they brush off Robert’s offer.
Lori chimes back in after hearing the couple mention that they have made plans to raise more money further down the line. She adjusts her offer to a $200,000 loan plus $200,000 cash for a 15% equity. She even offered to fund the coming orders purchased. Finally, Daniel asks the duo how much of their company they’re willing to give up in the investment. Joe and Rachel tell him the farthest they’ll go is a 25% equity. Daniel accepts and they receive a deal of $1 million for a 25% equity in Yellow Leaf Hammocks.
Yellow Leaf Hammocks Now in 2023 – The After Shark Tank Update
Since appearing on Shark Tank and receiving a deal of $1 million for a 25% equity in Yellow Leaf Hammocks, the deal between Joe and Rachel and Daniel Lubetzky has closed. The company is still in business, doing great, and has even been mentioned on Daniel’s website. Yellow Leaf Hammock sales increased quite a bit after being on Shark Tank, as did the businesses’ popularity. Within just the first 24 hours after the show aired, the company had already gotten thousands of new orders. They even started selling the hammocks on Amazon. As of 2023, Yellow Leaf Hammocks has an annual revenue of $1 million and a net worth of $4 million.
Two months after the air date, Joe and Rachel were featured on a Shark Tank update segment where they talked about ho the pandemic had affected business. Unfortunately, when the pandemic hit, Joe and Rachel noticed their sales dropping much more than they had anticipated. This was because people weren’t going on the cruises where 50% of the hammocks were being sold. Due to this issue, the couple had to start focusing more on selling directly from their website only, until things are returned to normal.