Hammocks made by moms in Thailand bags a $1M deal on ‘Shark Tank’ — and we’re here for the good vibes
It's not every day that 'Shark Tank' entrepreneurs are offered more money than what they initially asked for, and when that happens, there's usually a catch. In season 11, entrepreneurs Joe Demin and Rachel Connors pitched their business, Yellow Leaf Hammocks, to Robert Herjavec, Lori Greiner, Daniel Lubetzky, Mark Cuban, and Kevin O’Leary. The duo asked for $400,000 for 7% equity in their company, leaving the panel stunned.
The duo, who introduced themselves as the Chief Enthusiasm Officer, Rachel Connors, and the Chief Relaxation Officer, Joe Demin, pitched their product as a solution to busy, stressful lives. They shared that the product doesn't cause a rope burn and is completely weather-safe. But the real jaw-dropping moment came when Connors revealed that they had invented another product called Hammock Throne, designed in a versatile structure that can be used both indoors and outdoors.
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The duo then presented the samples of their hammocks to the sharks, revealing that they were handmade and signed by moms in rural Thailand. In turn, their company is creating high-wage jobs for these women, which helps to support their families. They also told the Sharks that while the retail price for each unit was around $199, the manufacturing cost was only $44. On the contrary, The Hammock Throne, which is their proprietary furniture, was costed at a whopping $2200. Things took an interesting turn when Demin told their sales were $1.3 million in 2020.
Lubetzky jumped in with the first offer of $1 million for 33% of the company, raising the asking amount by three times. But as Connors started to talk about the projections and plans of the company, Demin ruined it by saying that they didn't need that much money. However, Greiner jumped in with another offer: $400,000 for 20% of the company. The founders, however, countered the offer with $1 million at 25% equity, but Lori declined. Lubetzky further countered their offer and asked to settle for $500,000 for 25%, but the founders persisted and countered at $600,000 for 14%.
To add to the intense negotiations, Herjavec made an offer of $400,000 for 15% equity. But the founders were happy to go with Lubetzky's offer and wound up with $1 million, scoring one of the biggest deals on 'Shark Tank.' Early on, Demin shared that he got the idea when on a trip to Southeast Asia, and when he first caught hold of the fabric, he was impressed with the quality and started asking around about it. He learnt that it was made by a hill tribe community, which was struggling to get enough sales. He was so inspired by their story that he took on the mission to help them. According to Shark Tank Recap, in 2023, they were doing around $6 million in annual sales and showed no signs of slowing down.