Bombas recently surpassed $1 billion in sales and is the first Shark Tank company to reach this milestone. Founded by David Heath and Randy Goldberg, the brand claims to be a “comfort-focused sock” designed to help those in need. They appeared in season six and struck a deal with Daymond John. Due to their success, Bombas is worth $100 million.
Founder's story
David Heath and Randy Goldberg are both from New York. David's parents were businessmen and influenced him to study entrepreneurship at Babson College. Randy is a graduate of Georgetown University Business School.
Heath started making money at a young age, DJing at parties and selling knives door to door in high school. Goldberg, on the other hand, mastered copywriting, branding, and digital creativity.
Through his company, Tennis Partners, he provides consulting services to brands including Vitamin Water, Sony and Nike. He also founded a marketing company called Pop Up Flea.
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The two entrepreneurs met while working at a startup. The business idea came to them when they heard a Salvation Army major say that the most in-demand garment in homeless shelters was socks.
These people believed they could help and developed a business model similar to TOMS, which sells socks and donates a pair to the homeless for every pair sold. In 2013, they founded Bombas, which is Latin for “bee.”
David and Randy chose the name because of the bees working together to make their home a better place. The clothing startup launched a crowdfunding campaign on Indiegogo and raised more than $140,000 despite initially asking for $15,000
Introducing “Shark Tank”
A year after launching the sock brand, Heath and Goldberg appeared on “Shark Tank” to raise more money. The men were seeking $200,000 in exchange for 5 percent of the company.
The Sharks appreciated the philanthropic aspect of the business model and were impressed by the sophistication of the product. It features many sock innovations such as Y-stitching, blister tabs, reinforced footbed, seamless toe and honeycomb support system.
However, most sharks are concerned about how competitive the sock industry is. Daymond John, who has a long history in the apparel industry, is most interested. Daymond's offer of $200,000 for 17.5% of the company was accepted.
Success after “Shark Tank”
Nine months after “Shark Tank” debuted, Bombas had earned $450,000, ultimately becoming one of Daymond John's best investments on the show. He worked with Randy and David to strengthen their brand and improve distribution.
Now, it's one of Shark Tank's most successful businesses. In 2021, Bombas' revenue was $237 million, according to Zoominfo.com. In addition to athletic socks, the brand has expanded its product line to include T-shirts and underwear. To date, they have donated 100 million items to support those in need. As of 2024, their retail sales have exceeded $1.3 billion!
They have raised $182 million in funding across four rounds, the last of which was in December 2021. In early 2022, Bombas was exploring IPO options, but those plans have been put on hold. Currently, the company is valued at approximately $100 million.
Categories: Shark Tank
Source: svlsf.edu.vn