Shark Tank’s season 6, episode 1 aired almost a decade ago, but the aftermath remained as what people call one of the most successful pitches ever. Two guys started this clothing brand to sell athletic and comfortable socks. What became a casual conversation between two friends, David Heath, and Randy Goldberg, evolved into one of the most successful business ventures that not only sells comfortable socks but also helps thosethe ones in need.
The Story
David Heath and Randy Goldberg founded Bombas in 2013. Their first interaction with each other happened when they were working in a media company. The one thing that was common in them was the thought of starting a business. But what kind of business?
Back in 2011, Heath saw a post on Facebook about the most requested item of clothing in homeless shelters. It was socks. In an interview, Heath said, “Here is an item of clothing I have never spent more than a few seconds a day thinking about, and yet this is an item that is perceived as a luxury good for over 650,000 people living here in the U.S”.
That’s when they decided to start a clothing brand to sell highly efficient and comfortable socks. Upon learning that the clothing quality was bad at the homeless shelters, the duo realized that it was not just about selling socks. They wanted to fight for a cause and bring a definite change. Their business strategy was very simple, ‘for every pair of socks sold, they would donate a pair to those in need’.
Overview
| Company Name | Bombas |
| Founders | David Heath, Randy Goldberg |
| Founded in | 2013 |
| Products | Socks, T-shirts |
| Motive | To donate a pair to those in need with every sale |
| Shark Tank investment | $200,000 from Daymond John |
| Net Worth | $500 Million |
What Makes It Unique?
You might be thinking that they are just socks and what can be so special about them? Well, David and Heath spent some time designing the socks. Their focus was not just limited to producing comfortable socks but to providing users with a unique experience. After a thorough research, they came up with an idea that caters to the needs of the people. The duo developed a super-durablesuper durable sock design with additional features like blister tabs and arch support.
Investment and Crowdfunding
Having a startup idea is great, but to execute it you need investment. Finding investors is a very exhausting part of any kind of startup.
Heath and Goldberg came up with an effective and risky idea, which was starting a crowdfunding campaign. They started the campaign through Indiegogo. To fund their business, their initial aim was to raise $15K in 30 days. To their surprise, they managed to raise $25K in a day and a total of $140K. Additional funding came from their pockets, family, and friends.
Crowdfunding was the turning point of their business, as people understood their mission.
The duo designed the blog in a very creative manner that attracted many users. They put up a very catchy title, ‘Bombas: Better socks. Better world. Bee better’, to their blog. Giving a clear understanding of your brand’s motive and services is very crucial. Well, that’s what these guys had done. They gave a clear understanding by explaining the uniqueness of their product through captivating images and engaging advertisements.
Outline of the product (socks):
For knee length:
- Design
- Stay up Technology
- Y-stitched heel
- Long Staple Peruvian Pima Cotton
- Color
- Invisitoe
For Ankle length:
- Blister Tab
- Performance Footbed
- Honeycomb Support System
Bombas with the help of Indiegogo emerged as a successful brand. To make it available to a wider crowd, their continued sales led to a $1 Million investment by angel investors by the end of the year. That is when Shark Tank approached Heath and Goldberg.
Shark Tank Pitch
Who would have thought that a brand with a simple mission would grow into a successful business that could catch the eye of the sharks? Even Heath and Goldberg thought that it was some kind of a prank when they received an email inviting them to Shark Tank.
In Season 6 of Shark Tank, Heath, and Goldberg pitched their business idea and mission to the sharks. The duo explained the uniqueness of their socks, the revenue they generated, and their future. They asked for $200,000 for 5% equity. Though the pitch was thought-provoking, it didn’t appeal to 4 out of 5 sharks.
Here is the overview of their response:
- Mark Cuban liked the product and the mission, but considered the market to be small. He was Out.
- Lori Greiner was interested in the product and the mission, but she was a bit against the strategy of hiring workforce. She was Out.
- Kevin O’Leary considered the product to be very common, and the duo didn’t have much retail experience, so he was outOut.
- Robert Herjavec wasn’t convinced if the product would work as a stand-alone business and their strategy. He was Out.
- Daymond John considered himself to be out but he somewhat believed in their vision and offered them $200,000 for 20% stakes and finance for product and inventory. Counter to that, the duo offered 15% stakes. The deal was finalized for $200,000 and 17.5% equity.
This deal acted as a slingshot into the next level of success.
Aftermath
We can say that Bombas was very effective during the initial phase but only after the shark tank that it really became successful. It proved that no matter what your brand is if it provides good quality of goods with a definite mission, it could be victorious. This gave a sense of confidence for smaller businesses. Even to date, Bombas continues to stay strong in the business industry with a net worth of $500 millionMillion.
