In Season 11 of Shark Tank, Outer, a company specializing in innovative outdoor furniture, pitched its product to the sharks. Founders Jiake Liu and Terry Lin sought a $750,000 investment in exchange for 4% equity.
The concept intrigued Lori Greiner, and she agreed to invest, but things didn’t go as planned. Let’s dive into what happened, why the deal fell through, and how Lori and Outer moved forward.
The Shark Tank Deal Lori Greiner Proposed
During their pitch, Liu and Lin wowed Lori with Outer’s eco-friendly furniture, which features built-in covers and sustainable materials.
Lori offered them $750,000, structured as a loan with 3% interest, plus $30 per unit sold until $1 million was repaid. She would also take a 5% equity stake. This seemed like a solid win for both sides.
However, many viewers don’t realize that deals made on Shark Tank often change or fall apart after the cameras stop rolling.
Why the Deal Fell Through
Despite the on-air agreement, the deal between Lori Greiner and Outer didn’t close. This happens frequently in the venture capital world.
Deals can collapse during the due diligence, where investors closely examine a company’s finances, legal status, and operations.
Any concerns that arise during this phase can lead to the deal being canceled, which seems to have happened in this case.
Neither Lori nor Outer publicly explained why their deal fell apart. Nonetheless, Outer found other ways to fund its rapid growth.
Outer’s Success After Shark Tank
Even without Lori’s investment, Outer experienced significant success after appearing on Shark Tank. The exposure from the show helped boost sales and attract other investors.
By mid-2020, Outer had raised $4.3 million in funding, and in 2021, it secured a $10.5 million Series A investment led by Sequoia Capital China.
Later that same year, the company raised another $50 million in a Series B round. These investments allowed Outer to expand its product line, strengthen its marketing, and establish itself as a key player in the outdoor furniture industry.
Lori Greiner’s Other Successful Investments
While the Outer deal didn’t work out, Lori Greiner has built an impressive investment portfolio through her time on Shark Tank.
She has invested over $25 million across more than 200 deals. Some of her most profitable investments include:
- Scrub Daddy: Lori’s $200,000 investment in this smiley-faced cleaning sponge turned into a multi-million-dollar business.
- Sleep Styler: Another Shark Tank hit, this product generated $100 million in sales after Lori’s involvement.
- Bantam Bagels: Lori invested in this mini bagel brand, which T. Marzetti later acquired for $34 million.
Lori’s knack for identifying and scaling small businesses has earned her the nickname “The Queen of QVC.”
Not Every Deal Works Out
It’s important to remember that not all deals on Shark Tank make it past the negotiation phase. In fact, roughly half of the deals made on the show fall through due to valuation disagreements, legal concerns, or strategic misalignments.
The Outer-Lori Greiner deal serves as a reminder that even the best-looking deals can change behind the scenes.
Did Lori Make Money from Outer?
Ultimately, Lori didn’t make any money from Outer because their deal was never finalized. However, Outer thrived independently, raising millions and expanding its market reach.
Meanwhile, Lori continues to build her empire through successful investments in other Shark Tank companies.
Both Lori and Outer have proven that success doesn’t always depend on one deal, it’s about adaptability, persistence, and finding the right opportunities.