Bombas debut on the Shark Tank show was among the pitches with a social conscience. The Bombas entrepreneurs came to Shark Tank seeking funding of $200,000 in exchange for a 5% stake.
Randy Goldberg and David Heath, the two faces behind Bombas, developed a product after inspiration from a Salvation Army Major. During their visit to a homeless shelter, they overheard a significant saying that socks are essential items they need. This aspect put them into a thinking mode which gave birth to Bombas socks.
These socks are a customization of the athletic socks designed to keep the users warm. The proprietors came up with a business technique where they donate a pair of socks to charitable organizations on each pair they sell.
Though they wanted $15,000 to kick off their venture, a crowdfunding campaign had enabled them to raise $140,000. Their slogan “better bees” had worked effectively for their brand. The duo was featured on episode 601 of the Shark Tank show.
Did they leave with a deal, and what happened to Bombas after Shark Tank? Is it still in operation, or has their business ceased to exist? Keep reading to learn more.
Bombas Overview in Shark Tank
|Episode||Season 6 Episode 1|
|Product Offering||Unique Engineered Stylish Socks|
|Founder||Randy Goldberg and David Heath|
|Required Investment||$200,000 For 5% equity stake in Bombas|
|Closing Deal||$200,000 For 17.5% equity stake in Bombas|
|Current Business Status||Still in ongoing Business|
What is Bombas?
Bombas is an exception clothing brand popular for its idea of reengineering athletic socks and incorporating social welfare in its business model. The company sells socks, gloves, and other outfits that keep people warm during the winter season.
The name Bombas originated from the Latin language meaning “bumble bees.” The duo visualized themselves as bees that work together to make the beehive a better place. This aspect informed the operational approach where they donate a pair of Bombas socks to a charity organization on each pair they sell.
Bombas was an idea born from a Salvation Army major’s quote. The major has said that homeless people need socks more than anything else. For this reason, they developed a plan to create affordable high-end socks and donate them to charity homes while making sales to sustain the business.
Their socks are available in different styles and patterns fit for both men and women. They also have customized socks for athletes and sportspersons.
Bombas socks come in several versions, including the ankle, no-show, knee-high, and quarter styles. As well, there are options for people seeking socks to match their formal dress code. When you purchase a pair of socks, Bombas donates another to people in need and the homeless.
Who were the founder/s of Bombas
As noted, Randy Goldberg and David Heath are the founders of Bombas. The two entrepreneurs had pointed out that many people were going without socks as they could not afford them. This motivated them to rise to the occasion and try to resolve the issue.
While interacting with people on social platforms, they came across a Facebook post from a Salvation Army major. The post insisted on the importance of donating socks to the homeless. In essence, socks are the most important and requested item for these individuals.
This information convinced Randy and David to incorporate giving back to the community as part of their business model.
The duo met while working in media start-ups. They became friends and coined the idea of Bombas. They went on to implement it after two years of research and testing.
Also, they engaged Steve Lowenthal, former Gold Toe Socks president, to take up the product development and testing activities. This aspect enabled them to have a refined and long-standing sock manufacturing design.
How was Bombas before Shark Tank
Before pitching Bombas to Shark Tank, David and Randy founded the company in 2013. The inspiration from the Salvation Army major clicked in their mind. For this reason, they opted to follow the Tom’s Shoe operation model of donating a pair of socks on each pair sold.
The duo brought in Steve Lowenthal to assist them in refining the idea. Steve also got the mandate of testing and developing the product. This phase took two years.
Bombas socks idea was born, and they ran a one-month crowdfunding campaign on Indiegogo. The campaign enabled them to raise $140,000. This amount was essential in kickstarting their business.
They started to experiment with ankle socks while continuing with their full-time jobs. However, they left their full-time jobs in 2013 to concentrate on their company business.
Randy and David came to Shark Tank to find a partner that could help them move their business to another level. The duo was seeking funding of $200,000 in exchange for a 5% stake in their company.
Bombas Shark Tank pitch
David and Randy featured the Bombas socks on episode 601 in Shark Tank season 6. They hoped to go away with $200,000 funding in exchange for a 5% equity of their business. They had some pairs of their innovative socks for the sharks to try.
Randy starts their pitch by offering a detailed outlook of the athletic sock market. He notes that the market has been static for decades. Also, he claims that despite athletic socks being the most comfortable, only a few people can afford them. Randy brings in their potential idea that will revolutionize this market.
He gives background research and design customization that will transform athletic socks forever. Randy explains the seven crucial changes introduced to current athletic socks to make them more comfortable. He demonstrates the notable improvements and designs that make these socks everyone’s darling.
David chips in to elaborate on the charity aspect of their business. He tells the panel that each pair of socks sold results in another pair’s donation to a charitable organization. In other words, when they sell one pair of socks, they donate a pair to organizations caring for the needy and homeless.
As the panelists pass on the socks pairs handed over to them, the duo explains the materials used in making their socks. The entrepreneurs state that they use Peruvian Pima cotton. They also share some other improvements made to make these socks comfortable. The aspects included improved stitches and designs that eliminated the toe seams.
Their presentation was impressive, and the panelists had different aspects to say.
Robert Herjavec sort to know what makes their socks unique, noting that such socks are available everywhere. David did not deny this sentiment. However, he stated that they had taken extensive time studying all athletic socks on the high-end and mass product markets.
The study had informed them of all the issues with the socks and used the information to design a pair that resolved such problems. Also, they had come up with an affordable high-end athletic sock.
He noted that other socks with similar or near quality go for $20 while offering Bombas sicks at $9 per pair. The price was for the two pairs, given that they donated a pair for each pair sold. Robert further wanted to know whether they offer wholesale prices. David stated that they deal with customers one on one via their online retail shop.
Lori inquired about their current sales. David stated that Bombas had operated for 9 months and had earned $450,000 in sales. Robert wonders about its future sales prediction. The entrepreneurs stated that they are targeting to drive $1.1 million, $2.7 million, and $4.9 million in sales for the first, second, and third years respectively.
Bombas further explained that it has a 54% profit margin. Their valuation was $4 million. Kevin viewed the information as ludicrous, given that the company had low market exposure. He was out. David stated that they had not invested in advertising or marketing affairs.
Robert wondered how the socks would acquire new customers. Though he enjoyed the socks, he was unwilling to invest in them. So, he left. Lori was also uncomfortable with the client acquisition policy. She was out too.
Bombas now had two sharks to convince – Mark and Daymond. Mark raised an issue with the reason for the slowed growth. He wondered about the possibility of the company experience any growth given that it had flattened. So, he, too, dropped out.
Daymond became the last shark standing. As an experienced fashion investor, he had a special interest in Bombas socks. David proposed a 10% stake for $200,000. But Daymond requested 20% equity.
The entrepreneurs wanted to bring in a valuer to help them make a concrete decision. Daymond declined their suggestion. After a lengthy discussion and weighing of various issues. The parties settled for $200,000 in exchange for a 17.5% stake in the company deal. They sealed a deal, and the episode was over.
How is Bombas after Shark Tank
The deal between Bombas and Daymond went through. Daymond offered the duo the required amount as promised. According to him, this was a great investment opportunity. Together with the entrepreneurs, they work on improving Bombas brand and promoting it in the market.
Bombas also witnessed a surge in its sales level after the airing of the Shark Tank episode. The company kept its promise of donating socks to the homeless and needy.
Bombas Shark Tank updates 2022
To date, Bombas is still in active business. The company has donated more than 45 million socks to the homeless.
Eight years since appearing on the Shark Tank, Bombas has ventured into other cloth lines in addition to the socks one. Currently, it offers deals with Bombas socks, t-shirts, and innerwear for men, women, and children.
Daymond’s investment in this company paid and continues to bear more fruits. In 2022, Bombas socks are among the best. The company is still profitable and thriving.
Bombas’s Net Worth
The company has raised a total of $150 million of funds for its four rounds of funding while the last round was made in December 2021.
Since then, the company has grown a good revenue; it made $237 million in revenue in 2021. As a result, the net worth of the company is currently estimated at over $100 million.