What Happened to Outer After Shark Tank?
What is Outer?
Outer is a company that sells high-end wicker outdoor furniture such as cushioned couches, coffee tables, and more. In addition to cleaning materials and outdoor furniture accessories such as rugs, toss pillows, and covers.
Outer was formed in 2017 by co-founders Terry Lin, Chief Design Officer, and Jiake Liu, CEO.
Terry studied design at the Rhode Island School of Design. In his many jobs, he has substantial senior executive expertise and has supported organizations with marketing, retail sales, product development, and information technology.
Jiake is a University of Alabama alumnus who has made a fortune as an angel investor in several start-up businesses. Both men are still employed by the company in their present positions.
Who is the founder of Outer?
Outer, formed in 2017, is co-founded by Terry Lin and Jiake Liu.
Terry Lin is Outer’s Chief Design Officer, and he has extensive expertise in wicker furniture design, having produced several pieces for the company. He holds a degree in furniture design from the Rhode Island School of Design.
Jiake Liu, Outer’s CEO, has previously helped launch a number of businesses and has worked for well-known corporations such as Amazon and Starbucks.
He was also an angel investor in a number of private enterprises, most notably as a member of the founding team of Baidu.com.
The two guys launched the firm in 2017 with the intention of rethinking both outdoor furniture and its marketing.
Liu is a computer engineer with prior experience working with start-ups. Lin worked as a designer for Pottery Barn for over ten years, and his family also owns the Chinese factory that produces Outer furniture. The outdoor couch is at the heart of the business.
It is made up of 2-5 piece segments that may be assembled in a multitude of ways. They’re made of all-weather wicker, stain-resistant fabrics, memory foam cushions, and an inbuilt cover that protects them when not in use.
By eliminating showrooms, they are able to keep their prices lower than competitors. These are genuine client backyards. Prospective buyers can observe the furniture in its natural setting and talk with people who already own it.
Outer pays a predetermined price to its local showroom hosts, so there is no sales pressure in the conversations.
A four-piece sofa/chair set would set you back $3,300 delivered. While it looks to be a lot, it is equivalent to similar furniture at Lin’s previous office.
It looks to be a better value when you consider the ten-year frame warranty, the five-year wicker and cushion warranties, and the 365-day money-back guarantee.
Outer, on the other hand, sells only online and operates “showrooms” throughout Southern California.
What Happened to Outer During The Shark Tank Pitch?
The two co-founders decided to contact Shark Tank investors for help with market expansion.
Terry and Jiake entered the Shark Tank asking $750,000 for a 4% stake in their company, which is worth $18.75 million.
The company has been selling for four months and has made $800,000 in sales.
The Sharks are displeased with the valuation, which they claim was based on market size. The Sharks are surprised, but Terry and Jiake assure them that there are no inventory costs because Terry’s family pays for their factory’s inventory.
Two sharks have inquired. Kevin offers $750,000 in return for a 20% share in the company.
Lori proposes a $750,000 loan for 10% equity and a $20 per unit royalty until she earns the entire $1 million.
Lori proposes a $750,000 loan for 10% equity and a $20 per unit royalty until she earns the entire $1 million. Kevin updated his deal to include a $750,000 loan for 5% equity and a $20 royalty on each unit sold until he collects $1 million.
Terry and Jiake counter with a $750,000 loan for 4% equity and a $20 royalty on each unit sold until the debt is paid off.
Lori responds with a $750,000 loan at 3% interest for a 5% ownership stake, plus a $30 per unit royalty until she earns the entire $1 million. They accept Lori’s offer, they leave the pitch with a deal.
What Happened to Outer Following Shark Tank?
Terry, Jiake, and Lori rejoice after reaching a deal with Lori. However, the deal with Lori did not go through. The company is still raising funds. They raised $4.3 million in June 2020, followed by an additional $10.5 million in January 2021.
They have raised a total of $15 million from angel and venture capital investors. The most recent round of funding will be used for material research and the development of new goods.
They want to replace the outside home seats with tables, loungers, and chairs. Furthermore, they want to actively advertise to hotels, restaurants, and other tourism places in need of high-quality outdoor furniture, and 2020 will be a great year for the company.
With the world on lockdown owing to the Covid-19 outbreak, many people wanted to upgrade their patio furniture. While in-person customer visits were not possible, Zoom, Facetime, and other virtual meetings were employed.
In 2019, their income increased by 1,000%, from $1.1 million to $12.2 million. They opened 500 showrooms in 49 states at the beginning of 2021, with plans to expand that number by the end of the year.
By July 2021, they plan to make $45 million in lifetime income. They are quite popular among venture capitalists.
In September 2021, they concluded a $50 million Series B fundraising round alongside Capital Today, Tribe Capital, C Ventures, and Upfront Ventures.
Competitors of Outer
Roal, Rapport Furniture, Oyami Furniture, and Interbois are among Outer Muebles’ key competitors. Outer is a direct-to-consumer outdoor furniture company.
Outer Net Worth
During the pitch, the firm was valued at $18.75 million; since then, the company has been performing well in sales and rising funding from Ventures.
How much is Outer sold for?
Outer has a price range from $3,300 to $5,000.
How much is a unit of Outer products?
The price of each product varies depending on the number of each type purchased.
Where do customers buy Outer products?
The inventory is sold in showrooms located in California and other states such as Nevada, Colorado, Louisiana, Connecticut, Idaho, Kansas, West Virginia and Wyoming.
What materials are the products made of?
Outer is a furniture producer that produces different models of furniture that can be used in various places and circumstances.
What other products has Outer produced?
The company has produced several other successful lines of outdoor furniture, including the Circle Table, Swing Chair, and the Round Table, among others.
What services do they provide?
The firm provides professional furniture production of various sizes and models.
How much is the cost of shipping the product?
The company offers free delivery costs to their customers.
How long is the warranty period?
Outer provides a one-year warranty with the possibility of extending it depending on the customer’s needs.
How do customers receive their products?
The customers will receive their orders within several days. The delivery is free of charge and will be packaged in a way to protect the product during transport. The process can take up to four hours but varies depending on customer location and product type.
Do they offer financing options?
Yes, customers can use financing from Wells Fargo.
What other payment methods do they provide?
Customers can pay for their products using credit cards, including Visa and MasterCard. The company also offers PayPal as a payment option. You may also pay through Wire Transfer in the future.
Is there any free shipping policy?
Yes, delivery is free of charge to all customers in the United States and Puerto Rico.
What are the size options for each of Outer’s products?
All Outer products that are manufactured offer the possibility of customization. The company is able to produce its items in sizes ranging from 4′ x 8′ to 20′ x 30′.
Who is the founder of Outer?
The founders are Terry Lin and Jiake Zhao. They conceived the idea for Outer after analyzing their own experience.