Cold water baths, where you immerse your body in ice water, are an emerging trend among millennials. They have many health benefits, but they are a hassle to set up. Plunge is a bathtub that produces clear, cold water. Founders Ryan Duey and Michael Garrett pitched the product on Shark Tank and landed a deal with Robert Herjavec. As of 2024, Plunge has a market cap of $24 million.
Founder
Michael Garrett is a native of Arizona, USA. After graduating from Pennsylvania State University, he discovered the art of flotation therapy and founded Reboot Float & Cryo Spa in 2012.
His friend Ryan Duey, from Sacramento, California, studied international business at Cal Poly and later worked as a teacher in Spain.
In 2011, he returned to his hometown to work as an account manager for the San Jose Earthquakes soccer club. Ryan also dabbled in floatation therapy, founding companies such as Capitol Floats and Float Biz Startup.
The founding crash
After the outbreak, Michael’s floating spa business was forced to close. The entrepreneur then tried cold water baths and tried the benefits of cold water baths for weight loss, body recovery, immunity, etc.
However, cold showers were expensive, so his father helped him come up with a more affordable solution that didn’t require buying pounds of ice, and after they built a prototype they invited Ryan Duey to join them.
The company was founded in 2020 and they operated it out of Michael’s garage. One year after founding the startup, the duo had revenues of $4.9 million.
Shark Tank Appearance
In 2021, Plunge was already doing pretty well, but Ryan Duey and Michael Garrett wanted to expand the business. They appeared on Shark Tank Season 13, looking to raise $1.2 million for a 5% stake.
The two gentlemen had an interesting proposal, inviting Robert Herjavec to try a cold shower. Robert’s reaction made the other Sharks laugh so hard that his voice sounded like a train whistle! However, the Sharks were not too excited about the equity being offered.
Still, the four Sharks made offers, which put the founders in a tough spot. The best offer for them was Robert’s $2.4 million for 15 percent. Cuban was enthusiastic, but they pushed back, and Robert agreed to invest $1.2 million in cash and loan them $1.2 million for 12 percent.
After Shark Tank
After the episode aired on national television, the company saw a huge increase in orders and would have no problem paying back Robert’s loan. The fact that Robert went into the tank made the episode more memorable, which would help increase the episode’s online syndication and bring in more free PR.
In addition to the original product that was featured on Shark Tank, they now sell professional and commercial chillers. You can buy them at TheColdPlunge.com and at several Plunge facilities in the greater Sacramento area. They have increased the price of the product from $4,800 to $4,990, but you can also pay for it in monthly installments through Affirm.
On their website, the device has an average 4.8 star rating from 793 customers. With Robert’s investment, the company is valued at $24 million. According to Sam Parr, the startup is on track to generate $80-90 million in revenue in 2023, with shipments exceeding 2,000 units per month. In three years, the company went from zero sales to over $100 million in total sales.
Categories: Shark Tank
Source: svlsf.edu.vn