Yellow Leaf Hammocks Lands Deal With KIND Snacks Founder Daniel Lubetzky On Shark Tank Season Finale
The makers of impeccably hand woven hammocks received a $1M investment to drive social impact and scale relaxation
SAN FRANCISCO, May 18, 2020 /PRNewswire/ -- Yellow Leaf Hammocks co-founders, and husband and wife duo, Joe Demin and Rachel Connors closed the 11th season finale of ABC's Shark Tank with an eye-opening look into how they plan to take a vacation commodity and turn it into a homeware staple, all while breaking the cycle of poverty for families in Thailand.
On Friday night's episode, the social-impact startup shocked the Sharks with how their brand is empowering Thai mothers previously trapped in extreme poverty and debt to become artisan weavers for Yellow Leaf Hammocks, providing them a stable economy system. Yellow Leaf Hammocks' sustainable job creation paired with its 100% handwoven, high-quality product caught the attention of Sharks Lori Greiner and Robert Herjavec, along with guest Shark Daniel Lubetzky, founder and Executive Chairman of KIND Snacks.
Demin and Connors came in asking $400K for 7% equity stake in their modern relaxation brand. Before they could finish their pitch, Herjavec offered the duo $400K for 15% equity, and shortly after Greiner jumped in with an offer of $200K for 7% equity, with a promise to fund purchase orders. Ultimately, it was Lubetzky, with a proven track record in social entrepreneurship, who came to a deal with Demin and Connors. Lubetzky originally offered $1M for a 33% equity stake but Demin and Connors were unwilling to give up more than 25%, countering for $600K for 14%. Lubetzky was so passionate about the brand, he continued to negotiate, landing on an agreement of $1M for 25% of the brand.
"We didn't just want an investor; we wanted a partner who had been in our shoes and built a business from scratch. People had told us that we would need to choose between profit and impact if we wanted to raise investment, but Daniel is aligned with our belief that we don't need to make these tradeoffs," said Yellow Leaf Co-founder and Chief Relaxation Officer, Joe Demin. "Hammocks are not just for vacation. Especially when our world is facing both enormous stress and lockdown, Yellow Leaf Hammocks can play a daily role in helping people to unwind, be present, and care for themselves in a healthy way," added Yellow Leaf Co-founder and Chief Enthusiasm Officer, Rachel Connors.
"I have always felt that hammocks are magical, because they deliver the relaxation we all need but rarely make time for," said Lubetzky. "Not only am I thrilled to work alongside Yellow Leaf's team to scale their impact on families in developing economies; but I'm also looking forward to making hammocks an accessible treat for people to enjoy in their daily lives."
Yellow Leaf Hammocks launched in 2012 with its Signature Collection of hammocks woven by women in the Mlabri Tribe, an ethnic group who previously battled exploitation, slavery and malnourishment. Through Yellow Leaf, hammock weaving has established these women in safe, dignified jobs. The financially-stable employment that Yellow Leaf supplies has enabled weavers to vault from extreme poverty to the middle class, allowing their families to have a brighter future without risk of sliding back down the economic ladder. Yellow Leaf's hammocks and hanging chairs are available for purchase in the United States on yellowleafhammocks.com. Hammocks retail $179-$299 USD and are appropriate for both indoor and outdoor use. Each hammock comes with a tag personally signed by the woman who wove it by hand.
ABOUT YELLOW LEAF HAMMOCKS
Founded by husband and wife Joe Demin and Rachel Connors, Yellow Leaf Hammocks is a lifestyle brand focused on relaxation and driven by positive impact. Yellow Leaf Hammocks makes products that empower people to practice daily relaxation and to live their best, most stress-free lives. The brand's first product is a line of hammocks that are impeccably handwoven, shockingly soft, and technically engineered for extreme comfort. Best of all, Yellow Leaf is committed to creating high-wage jobs for moms in rural Thailand who weave each hammock by hand. The team's goal is to empower artisans to lift their families from poverty to the middle class. Learn more at yellowleafhammocks.com.
SOURCE Yellow Leaf Hammocks
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