Sierra Madre Research Hammock
DEAL
EPISODE SUMMARY
🕓 Air Date: October 1, 2017
Asking For:
$175,000 for 15%
Investor:
Richard Branson
Deal:
$175,000 for 15%
PRODUCT SUMMARY
Sierra Madre Research designs innovative, protective, and comfortable hammock camping equipment, pioneering the ground-to-air tent segment of the outdoor market.
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Background Story
Sierra Madre Research, founded by Richard Rhett and Juli Rhett, aims to transform the camping experience. The idea was born during a medical mission trip in Honduras in 2009, where the founders, Richard and Juli, were providing clean drinking water. Inspired by the discomfort of sleeping in a traditional hammock, Richard, an engineer with an analytical mind, decided to create a better solution.
They started sourcing fabric and eventually founded Sierra Madre Research, dedicating a portion of their profits to drilling clean-water wells in Central America. The company has a passion for adding value to people’s lives globally, both through innovative products and social impact.
The Product
Sierra Madre Research offers a ground-to-air tent, a hammock camping solution that provides a more comfortable and protective outdoor experience. The tent includes three main components: rain protection, insect protection, and a gear stash for storage.
It easily wraps around a tree, and the color-coded clips simplify the attachment process. The hammock package, priced at $350, includes the hammock, suspension system, and two carabiners, boasting a 62% profit margin.
How It Went
The company’s position before Shark Tank
Sierra Madre Research has shown promising growth, with $208,000 in sales the previous year and a projected $430,000 to $500,000 for the current year. The majority of sales come from word of mouth, showcasing the effectiveness and popularity of their gear.
The founders allocate a portion of their profits to drilling clean-water wells in Central America, aligning the company with a social mission. While the company is profitable, the camping gear market is acknowledged as competitive, with the founders emphasizing their innovative approach compared to existing solutions.
The Negotiations:
The negotiation process involved interest from all Sharks initially. However, as the pitch progressed, Daymond John, Mark Cuban, and Lori Greiner dropped out, expressing concerns about the market’s competitiveness and potential imitation by other companies. Richard Branson, known for his adventurous spirit and philanthropy, made the sole offer.
He agreed to the founders’ asking price of $175,000 for 15%, with the unique condition that 100% of his profits would go to charity. The founders eagerly accepted the offer, expressing excitement about working with Richard Branson and the potential for their hammock tents to reach a global audience. The deal not only secured funding but also brought in a strategic partner with a renowned brand and a commitment to social impact, aligning with Sierra Madre Research’s mission.
