Outer Secures $50M Series B Funding - Outdoor Furniture Expansion

Shifting Lifestyles Drive Investment in Outdoor Living

On average, individuals in the United States devote over 90% of their time within indoor environments. However, a recent survey indicates a significant shift in homeowner preferences, with approximately 82% expressing greater interest in enhancing their outdoor living areas compared to pre-pandemic levels, as reported by Jiake Liu, co-founder and CEO of Outer, to TechCrunch.

Increased Home Improvement Activity

Furthermore, roughly 54% of homeowners have undertaken at least one home improvement project focused on their backyards since the onset of the COVID-19 pandemic. Millennials, currently the largest demographic of homebuyers, demonstrate a willingness to accept smaller indoor living spaces, or even forgo bedrooms, in exchange for accessible outdoor areas, Liu stated.

The "Flight from Density" and Market Expansion

The COVID-19 pandemic instigated a nationwide trend – a “flight from density” – as millions of Americans relocated from densely populated urban centers to suburban areas seeking refuge from the virus. This demographic shift has subsequently created expanded opportunities within the outdoor entertainment sector.

Outer Secures $50 Million in Series B Funding

Outer, a direct-to-consumer (D2C) outdoor furniture company headquartered in Santa Monica, announced today the successful completion of a $50 million Series B funding round. This investment aims to facilitate the expansion of access to quality outdoor living solutions for a broader global audience. The company was established in 2019 by CEO Liu and Chief Design Officer Terry Lin.

Investment Details

Capital Today’s founder, Kathy Xu, spearheaded the Series B round, with contributions from Tribe Capital, C Ventures, and Upfront Ventures. Existing investors, including Sequoia Capital China, Mucker Capital, Mantis VC, and Reimagined Ventures, also participated in this funding initiative.

This latest fundraising effort, occurring approximately eight months after Outer’s $10.5 million Series A round in January, elevates the company’s total funding to $65 million.

Future Plans and Sustainability Focus

The newly acquired funds will be allocated towards solidifying Outer’s position within the outdoor living industry. This includes the development of innovative, sustainable materials, the construction of an environmentally responsible supply chain, and the expansion of both their product line and community engagement, according to Liu. Outer is actively recruiting for various positions to support its entry into the global market this year, with a strategic international launch planned for October, Liu shared with TechCrunch.

“We are dedicated to researching and implementing new, eco-friendly alternatives to conventional fabrics, plastics, and concrete, which currently contribute to environmental pollution,” Liu explained. The company’s commitment to sustainable materials extends beyond recycled plastics, with a long-term goal of achieving carbon negativity.

Investor Confidence in Outer’s Vision

“From its inception, the Outer team has prioritized sustainability. Terry and his team have been instrumental in pioneering new fabrics and eco-conscious designs, ensuring that durability does not compromise environmental responsibility,” stated Kathy Xu, founder of Capital Today. “The team is actively developing sustainable fabrics, plastics, and concrete poised to become the new industry benchmark.”

The Neighborhood Showroom Program

A distinctive aspect of Outer’s business model is its Neighborhood Showroom program. This initiative allows potential customers to visit the homes of existing Outer customers in over 1,000 locations across 49 states, providing a firsthand experience with Outer products. This program has grown significantly from its initial launch in 2019, encompassing 50 locations in 13 states. Outer’s direct-to-consumer (D2C) approach eliminates the need for intermediaries such as distributors, retailers, or traditional showrooms.

Market Growth and Projections

The global furniture market was valued at approximately $17.8 billion in 2018 and is forecasted to reach $26.6 billion by 2027, as indicated by Liu. A report by Freedonia estimates the U.S. outdoor living market at $33.4 billion in 2021.

Recent Product Launches

Outer has recently introduced the Teak Collection, Aluminum Collection, and Bug Shield Blankets to its product portfolio.

“For too long, outdoor products have been treated as secondary considerations, and their subpar design has hindered the enjoyment of outdoor spaces,” Xu commented. “Outer’s thoughtfully designed and sustainable products are already transforming how consumers interact with their outdoor environments.” She added that Outer is effectively addressing common consumer pain points, such as dirty and damp outdoor cushions and insect bites, through its innovative solutions.

“Jiake and his team have adopted a product-centric strategy, establishing Outer as a leading premium furniture brand – driving substantial growth and delivering compelling unit economics,” noted Sri Pangulur, partner at Tribe Capital.