Yellow Leaf Hammocks Is Offered $1M, But Will They Accept? | Shark Tank US | Shark Tank Global

next up is a stylish way to relax [Music] hi I'm Rachel and I'm the chief enthusiasm officer and I'm Joe and I'm the chief relaxation officer we're seeking 400 000 in exchange for seven percent of our company wow I mean the emails popping up in your inbox 24-hour news blaring from every screen and constant pinging interruptions from your smartphone we're all feeling more overwhelmed and stressed out than ever we're all sick of feeling busy hectic and rushed and our solution to this frustration is not another app or Gadget our solution is the world's most ridiculously comfy hammock introducing Yellow Leaf hammocks at Yellow Leaf hammocks we've perfected the hammock for the modern consumer we've conquered every obstacle from creating a cocoon-like no wobble design to a shockingly soft yard so you won't get a rope burn when you're trying to relax and they're completely weather safe now we're breaking the boundaries of relaxation with our new invention the hammock Throne the hammock Throne is an indoor outdoor hammock chair that makes it possible to relax absolutely anywhere with the hammock Throne you have a gorgeous piece of furniture that you can put out in your living room on your tiny balcony or even in your office it extends back to create a full length hammock large enough for a seven foot person all within a diameter of just three and a half feet wow and it swivels 360 degrees out the window or relax while you watch Shark Tank first we perfected the hammock now we've brought it into your living room so sharks who wants to make the world a better place and join us in our quest to build a relaxation Empire so on the tables in front of you are specially selected hammocks if you open these up and first thing you want to look at the label they're all signed by the woman who made it we're social Enterprise I like that yeah they're all where do you make them we work with moms in rural Thailand to create high-wage jobs what do they cost what do you sell them for the ones that we just gave you guys are a classic double it's our top selling size they retail for 199. oh that's not bad our current line ranges between 149 and 299. the 199 hammock how much do you pay for it 44 is our landed cost so what is an average hammock made out of something like this what is that you can find a hammock for 30 on Amazon to be perfectly honestly it's not gonna feel like this it's not going to look like Rachel how much is the contraption so this is the brand new hammock Throne this is our high-end hanging solution that we've just introduced yeah I did so this one is somewhere in the neighborhood of 2200 yeah whoa wow but it's an indoor piece of furniture see that seems like a lot tell us a story of how you get started here our inspiration to start this was to literally end poverty in really vulnerable communities in the developing world the idea for the company started when I initially went on a backpacking trip across southeast Asia without me together in Boston at the time and I stumbled across a hammock on a remote island and I was immediately struck by how soft it was I was really impressed with the quality and I started asking some questions and learned that it was woven by this hill tribe Community it was part of an economic development program to help this hill tribe group out of poverty and I was really struck by that in Thailand so I went to this community and I got to meet the actual Weavers and hear their stories and I learned that this community that started making the hammocks with the help of an aid worker had been previously in debt slavery and the thing that really struck me was a lot of people kept coming to this community asking to join the program but they were being turned away because there weren't enough sales and I thought well we can start a little hammock company and you know provide enough jobs in this region so it came home with a backpack stuff full of hammocks and I came home to Rachel I was thrilled that my boyfriend wanted to quit his Finance job and start a hammock company as you can imagine yeah what are your sales this year we're going to hit 1.3 million wow last year we at 860 000 your sales are primarily online it's about 50 50 between a combination of direct to Consumer sales to our website as well as strategic Partnerships a big part of our early pulse kind of scatter shot patio stores we took a step back from that to focus on strategic Partnerships who uh it's virgin voyages which is virgin's new Cruise Line business so virgin voyages will be putting Yellow Leaf hammocks in every single balcony of every single cabin what price do you get from them for these they care wholesale price but they'll also be retailing them so they'll be on the room service menus in the in the cabin and on the stores the retail store is projected to more than double our current business so you've got to be profitable then right last year on uh 860 000 in Revenue our net income was a hundred ten thousand that's right they're paying yourself after paying ourselves yeah John Rachel yes here's my offer bam I wrote the five sharks here I probably have the most credentials about building social impactful businesses so I understand the challenges you're facing I really love a lot of what you stand for but you have a hundred thousand dollar profit with a crazy 5.7 million dollar evaluation so my offer is as follows and it's an explosive offer I want 33 of the company and I'll give you one million dollars wow say yes or no and then it's done all sharks are still in Rachel and Joe are seeking four hundred thousand dollars for a seven percent stake in their mission-based hammock company Yellow Leaf hammocks Daniel is interested and has made a staggering offer what what I want 33 percent of the company and I'll give you one million dollars say yes or no and then it's done billion dollars you you mentioned our profitability on last year I want to mention our profitability on this year yeah right and I think the order yeah so on the 1.3 million that we're doing uh this year we're doing 360 000 in profit one of the biggest things that we're looking to do with this money is we have a huge product roadmap of solutions Rachel so we started talking and take the deal he's paying you over eight yeah that's an amazing offer we also recognize that we might not need all of that money right now all right well hey well listen he just said maybe he doesn't need all that much money so I will give you an offer I'll go four hundred thousand for 20 now a granted his might be better offer for you a million dollars for the 25 and both of you I don't want to go to the million about 500 000 for 25 percent what's your counter for 25 600 000. 14 percent oh wow I love the idea and I think you guys are the real deal thank you I will give you the 400 000 for 15 percent if you take the million dollars from me you won't need to dilute yourselves again you know how much money kind has raised in its entire lifetime for the business the total we ever raised in our entire history was 5.2 million dollars we sell over a billion dollars in sales I'll teach you and I'll help you run the business in an efficient way are you okay with 33 or is that too much for you I think it's too much because the maximum that you're willing to do for someone that's going to really roll up their sleeves and help you we're looking at the future if you took 33 now I worry that we would it would hurt us at a subsequent round when we grow what subsequent wrong when I started my business started with one product I took out a bank loan it was about 325 000 I paid it back within a year and I never had to take a loan or bring in an investor again so listen I don't think you need to just sit there and take on all these investors and take in a whole ton of money you just need to be strategically smart and take in the right investor but you need something that's the bottom line so I'm going to change my offer I'm gonna go two hundred thousand dollars flat then I'm gonna give you a loan of 200 000 at seven percent I'm going to fund purchase orders if you need them and I'm going to ask for Seventeen percent are you making 400 000.50 something that I can offer is is I can offer somebody who will hold your hand take it down the road do everything that you need I care about helping women I care care about helping environment I care about helping the world and I really like the two of you so I care about you I love the two of you Lori thank you so much we love you guys we're making it hard on them what's the minimum percentage and what dollar do you want [Music] Focus Joe YouTube what do you do one million dollars for 25 percent just because I love you we're gonna change some life I never thought he'd go down it's never happened before in Shark Tank history when someone came in here for four hundred thousand walked out with a million I'm really excited to work with you I'm gonna make a huge difference I'm so thrilled thank you congrats

Channel: Shark Tank Global

Views: 508,757

Keywords: Shark Tank, Shark Tank US, Shark Tank Australia, Kevin O’Leary, Barbara Corcoran, Daymond John, Robert Herjavec, Mark Cuban, Lori Greiner, Dragons’ Den, Money Tigers, Entrepreneurship, investment, reality tv, yellow leaf hammocks, yellow leaf hammocks shark tank pitch, yellow leaf hammocks shark tank, yellow leaf hammocks shark tank deal, yellow leaf hammocks shark tank episode, yellow leaf hammocks valuation, daniel lubetzky shark tank, daniel lubetzky yellow leaf hammocks

Id: LADiqIyUw_c

Length: 10min 30sec (630 seconds)

Published: Thu Aug 04 2022