A backyard isn’t a typical place to put furniture. That was the case until Terry Lin and Jiake Liu started an outdoor furniture company called Outer. Their products are built to withstand a wide range of weather conditions, so customers can place them outdoors without worrying about damage. As of 2024, Outer is valued at $100 million.
Founder Background
Terry Lin and Jiake Liu are both from California, USA. Terry graduated from the Rhode Island School of Design with a degree in Fine Arts, and Jiake graduated from the University of Alabama with a degree in Computer Engineering.
Lin has worked as a designer at Pottery Barn for more than a decade. During that time, Liu helped several startups expand and scale. He was the original brainchild of Outer.
When he saw a lack of outdoor furniture in the market, he began looking for someone with experience in the craft industry. That’s how he met Terry Lin, and they soon became business partners.
The Birth of Outer
Lin designs furniture made from all-weather wicker, memory foam cushions, stain-resistant materials, and integrated covers. Their main product is an outdoor sofa that comes in two to five configurable sections.
By excluding showrooms from their business model, they are able to keep pricing cheaper than their competitors. Interested buyers can view samples in “community showrooms,” which are actual customers’ backyards.
The average price of a sofa and chair is $3,300. Outer officially launched in 2017. In the first four months, they ran a successful promotional campaign and achieved sales of more than $800,000.
Shark Tank
In late 2019, Terry and Jak appeared on Shark Tank. They asked for $750,000 in exchange for 4% of the startup. Their pitch introduced the idea of reinventing furniture and how furniture could be sold in the future.
The Sharks were very interested in the outdoor sofa, but most people thought the offer was too high. Even so, Kevin O’Leary and Lori Greiner did not give up the opportunity.
Kevin offered to buy 20% of the shares for $750,000, but was rejected. On the other hand, Lori made several profitable reverse trades. In the end, she bought 5% of the shares for $750,000 and a royalty of $30 per unit. After a period of consideration, the founders of Outer accepted the deal.
Success after Shark Tank
With Lori’s extensive experience in the B2C space, Outer’s chances of becoming a top outdoor furniture brand are greatly enhanced. However, the deal with the celebrity investor has reportedly not yet been completed.
Even so, Lin and Liu still found a way to raise money. In 2021, they received $10.5 million in Series A funding, with Sequoia Capital China as the main investor. Later that year, a Series B round raised $50 million from Tribe Capital, Capital Today, Upfront Ventures, and C Ventures.
Outer has been getting a lot of attention for their unique take on the furniture business. Most notably, they have been featured in major publications like Forbes and GQ Entrepreneur. The company is performing extremely well and thriving in a competitive market. Their most recent sales were $45 million and they have 500 showrooms across the United States. That’s why Outer is currently valued at $100 million.
Categories: Shark Tank
Source: dut.edu.vn
