Their pricey baby brand worried the Sharks — but these moms still scored a $1M offer
Back in Season 11 of ‘Shark Tank,’ Linsey Fuller and Lili Yeo introduced Goumi, their sustainable baby clothing line, to the panel. The brand specializes in sustainable, functional baby clothing. According to Shark Tank Blog, the idea came when the two, both new moms, were talking in a kitchen. They wanted baby clothes that were stylish, functional, and eco-friendly but couldn’t find them in stores. When they couldn’t find it, they decided to create their own.
Seeking $1,000,000 for 8% equity, Fuller and Yeo shared their journey and handed out product samples. They projected $2.5 million in sales for 2019. They added that the company aimed for $5.8 million in lifetime sales. However, this made the Sharks wary, and they expressed concern about the company’s pricing.
It was Mark Cuban, along with Daymond John as well as Kevin O’Leary, who expressed that the valuation of Goumi was a ‘bit rich’ for their taste. They explained that they kept the valuation high because that’s “what they could raise,” which didn’t sit well with most of the Sharks, according to Shark Tank Recap. Meanwhile, Lori Greiner said the products were too expensive. She noted that the starter kit costs over $100, and parents would need several more pairs. Fuller insisted the price was fair, citing positive online feedback. Nothing the entrepreneurs said could convince Greiner to invest.
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Cuban also criticized the product’s packaging and presentation. On the other hand, it was Barbara Corcoran who compared the product to a company she had previously invested in. The company was Grace and Lace, which had done about three times the sales that Goumi had within the same amount of time. The Shark also mentioned that the reason behind Grace and Lace having more sales than Goumi was that they were also focused on other products besides baby clothing. Saying the company was too much for her, Corcoran backed out of making an offer.
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However, the two mothers then got an offer from John, who came forth with $1 million for 30% equity. It was expected by the die-hard fans of ‘Shark Tank’ to have O’Leary come forth with an offer. The Shark, Mr. Wonderful, is known to invest in baby businesses. He offered the duo $1 million as a revolving credit line, but with an interest rate of between 9 and 10%, plus 10% equity. The mothers then countered John’s offer, asking to lower it to 15% equity. John refused. Further in the episode, although Goumi had a line of credit they hadn’t used, they eventually accepted O’Leary’s deal.
