Notes on Outdoor Furniture Company Outer Presentation

Introduction

• Presenters: Jake Liu and Carrie Lynn, Co-founders of Outer
• Funds Sought: $750,000 for 4% equity

Problem Statement

• Soggy Bottom Syndrome: Outdoor furniture cushions get wet and uncomfortable.
• General issues with outdoor furniture:
  • Falls apart easily
  • Uncomfortable
  • Often stored away and unused

Solution

• Product: Perfect outdoor sofa
  • Comfortable as a bed
  • Durable like camping equipment
  • Made with eco-friendly materials
  • Outer Shell Cover: Patent-pending cover that protects cushions from elements
    • Easy to cover and uncover
    • Portable and easy to store

Innovation

• Shopping Experience: Peer-to-peer showroom platform
  • Customers convert their backyards into showrooms
  • Potential buyers can see, touch, and feel the sofa before buying
  • Called the Neighborhood Showroom
  • Sharing economy for retail

Financials

• Product Price: Three-seater sofa - $2500
• Cost to Make: $820 per sofa; Cost of goods - approximately $225
• Revenue: $800,000 in sales over 4 months; Projecting $1 million by year-end and $5 million next year
• Valuation: $18.7 million (based on recent VC round at $13.5 million)

Shark Offers and Feedback

• Kevin: 750k for 20% equity
• Lori: 750k loan with 20% royalty per chair until 750k is repaid, then 10% equity
  • Matched by Kevin with modifications
• Counter Offer: 750k loan; 30% royalty until $1 million repaid with 3% interest; 5% equity
  • Accepted by Lori

Conclusion

• Outcome: Deal accepted with Lori for loan and equity terms.
• Vision: Excited to work on more products in the outdoor space.