Bombas recently surpassed $1 billion in sales, becoming 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” company that helps those in need. They appeared on Shark Tank Season 6 and have a deal with Daymond John. As of 2024, Bombas is valued at $100 million.
Founder’s Story
David Heath and Randy Goldberg are both from New York. David’s parents are businessmen, and they influenced him to attend Babson College to study entrepreneurship. Randy graduated from Georgetown University School of Business.
Heath started earning money at a young age, DJing at parties in high school and selling knives door-to-door, while Goldberg excelled at copywriting, branding, and digital creativity.
Through his firm Tennis Partners, he has consulted for brands including Vitaminwater, Sony and Nike, and he also founded a marketing firm called Pop Up Flea.
Launching a bomb
The two entrepreneurs met while working at a startup and got the idea for their business after they heard a Salvation Army major say the top clothing item needed at homeless shelters was socks.
These guys believed they could help and developed a business model similar to TOMS, selling socks and donating one pair to the homeless for every pair sold. In 2013, they founded Bombas, which means “bee” in Latin.
David and Randy chose the name because bees work 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.
Pitching on Shark Tank
A year after launching their sock brand, Heath and Goldberg appeared on Shark Tank to raise more funding. They hoped to receive $200,000 for a 5% stake.
The Sharks appreciated the philanthropic nature of the business model and were impressed by the sophistication of the product, which features many sock innovations such as Y-stitching, blister tabs, reinforced insoles, seamless toes and a honeycomb support system.
However, most of the Sharks were concerned that the competition in the sock industry was too fierce. Daymond John, who had many years of experience in the apparel industry, was most interested. Daymond’s offer of $200,000 for 17.5% of the company’s shares was accepted.
Success after Shark Tank
Nine months after the Shark Tank show, Bombas had earned $450,000, making it one of Daymond John’s best investments on the show. He worked with Randy and David to strengthen the brand and improve distribution.
Now, it is one of Shark Tank’s most successful businesses. According to zoominfo.com, in 2021, Bombas had $237 million in revenue. 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, they have made over $1.3 billion in retail sales!
They raised $182 million in four rounds of funding, with the last round completed in December 2021. In early 2022, Bombas was exploring IPO options, but those plans were put on hold. Currently, the company is valued at around $100 million.
Categories: Shark Tank
Source: svlsf.edu.vn