Randy Goldberg and David Heath seek to fit a Shark in episode 601 for Bombas, their socially conscious sock firm.
The two guys founded Bombas after hearing a Salvation Army Major state that “socks are the most desired piece of apparel in homeless shelters.” They reasoned that they could manufacture a better sock and donate a pair of socks for every pair sold.
Even the business name – Bombas is Latin for “bee” – has a social connotation: “bees work cooperatively to make the hive a better place.”
The socks themselves are brightly colored athletic socks with clever design elements such as a honeycomb support system, Y stitching at the ankles, blister tabs on the heels, seamless toes, and reinforcements in the footbeds.
You will not find these worn-out black socks on your grandfather!
Randy and David successfully crowdfunded their firm via an Indiegogo campaign. They raised nearly $140,000 on a $15,000 ask and immediately got to work.
Their message and their cozy socks appear to have captured the crowdfunding universe’s attention.
Their motto, “bee better,” applies to both their charitable endeavors and the athlete within every one of us who wears their socks.
What is Bombas?
Bombas is a clothing brand best known for its reengineered athletic socks. They also have a vision for the welfare of the homeless and impoverished.
When you purchase a pair of Bombas socks, they donate another pair to those in need and the homeless. They have provided almost 45 million goods to date.
Bombas is a high-end sock brand that offers every style possible in various stylish patterns for men and women.
Socks are available in no-show, ankle, quarter, and knee-high styles. They also offer choices for athletes participating in a range of sports disciplines.
Additionally, there are versions for formal dress-up occasions. Bombas distributes one pair of socks for every pair sold to the homeless and in need.
|Founder||Randy Goldberg and David Heath|
|Product||Unique Engineered Stylish Socks|
|Investment Seeking||$200,000 for 5% equity in Bombas|
|Final Deal||$200,000 for 17.5% equity in Bombas|
|Episode||Season 6, Episode 1|
Who is the Founder of Bombas?
Bombas was founded in 2013 by David Heath and Randy Goldberg. They met while working for the same media start-up company and quickly became strong friends.
The Bombas firm is headquartered in NEW YORK. While on Facebook, David and Randy determined that socks are the most in-demand item for homeless individuals.
They claim to have spent two years researching and developing Bombas socks to create flawlessly constructed socks for the public.
Randy Goldberg and David Heath were previously employed at a media startup before conceiving and implementing the Bombas firm.
They remain active members of the board of directors, today. The company has achieved enormous success under its tenacious leadership. Bombas generated revenue of more than $100 million in 2018.
Bombas Before Shark Tank
David Heath and Randy Goldberg based their socks business on this Salvation Army remark.
Taking inspiration from Tom’s Shoes, who donate a pair of shoes for every pair purchased, they came up with this idea.
Former Gold Toe Socks president Steve Lowenthal helped Randy and David develop and test their product for two years.
They refined the design of the socks based on a long-established, proven tradition in the sock manufacturing sector.
‘Bombas’ is Latin for “bumblebee,” and Randy and David envisioned their sock business as a hive to give back to the community and help people with less opportunity.
The month-long Indiegogo campaign raised more than $140,000 for development.
A wide range of wealthy investors who shared a similar philanthropy goal was enticed by the company’s humanitarian component and commitment to superior customer service.
David got the idea to start the company after seeing a Facebook post indicating that socks were the most requested item of clothing at homeless shelters in 2011.
The two became inspired to create a sock company that donates to charity after discussing it with Randy. They had seen other companies gain traction with buy one, give one away campaigns.
They subsequently developed the perfect pair of ankle socks while managing their full-time jobs, experimenting with fabrics, sizes, and features.
David was personally invested in the project. A child with ADHD had difficulty finding comfortable socks.
He has sensitivities mainly because of them. The entrepreneurs quit their jobs in 2013 and raised more than $1.25 million in two years.
Randy and David prepared to enter the Shark Tank, hoping to take Bombas to the next level. They were able to do so through crowdsourcing and financing from family and friends.
The team felt that an investor with expertise in fashion and clothing was needed to succeed and develop the business to its full potential before entering the market. They applied for a place on Shark Tank as a result.
How Was The Shark Tank Pitch of Bombas?
The entrepreneurs, seeking $200,000 in exchange for a mere 5% stake in Bombas, indicated to the Sharks that the industry of selling athletic socks had been approached in the same way for many years.
Randy explained to the panel how two years of exhaustive research and design resulted in seven significant changes that culminated in “the most comfortable pair of socks you’ll ever wear.”
David discussed their business’s charity element, noting that they donate one to those in need for every pair of socks sold.
Sample socks were given out, and they discussed how they had modified the style, including using Pima cotton, improving stitching, removing forearm seams, and adding a revolutionary arch stitch.
The panel was impressed by both the work put into establishing a high-quality product and the charitable component of the business.
Robert, a seasoned runner, was curious about what set Bombas apart from the plethora of competitors on the market today.
David stated that they conducted a thorough analysis of the other top-selling athletic socks, ranging from high-end specialized running socks that retailed for more than $20 to low-cost mass-market packs that sold for a fraction of that.
They conducted research and due diligence to reduce production costs to just $9 for their product while still including a pair of donated socks per pair sold.
Thus far, all sales have been made at the retail level, with no wholesale contracts in the works.
Bombas had been in business for nine months and had sales of $450,000. Mark was particularly taken aback by the fact that all transactions had been conducted online.
David stated that their predicted sales statistics for the first year were $1.1 million, $2.7 million for the second year, and upwards of $4.9 million for their third year.
In addition to shipping and donation charges, their profit margin averaged 54%.
Bombas’ growth had slowed in recent months, but David had received $900,000 in venture capital to expand the marketing department and valued the company at $4 million.
Kevin deemed the valuation “ludicrous” in the absence of market exposure and withdrew.
Bombas was thrilled with $400,000 in income, but Robert was worried in the face of socks being an accessory that would not sell well on their own.
David stated that they had spent no money on client acquisition or advertising and had obtained all of their sales thus far through favorable word of mouth.
The investment funds they sought would engage someone to oversee new client acquisition to grow base sales considerably. Robert enjoyed the socks but not their response, and he left.
Lori also took issue with the policy of outsourcing client acquisition, believing that they should seek out and sign new clients. She was also gone, leaving only Mark and Daymond.
Mark was concerned that Bombas had plateaued too soon and believed that the markup should be higher; he also believed that this would jeopardize the company’s capacity to grow profits over time and thus dropped out.
Daymond was the Shark with experience in the fashion sector. David’s offer was increased to $200,000 and a 10% interest in Bombas.
The offer was offered just to Daymond, who informed them that he was on the verge of leaving the Sharks with the rest, and he countered with the $200,000 for 20% of the business.
Randy and David lacked much wiggle room at this time. Daymond informed them that he was still on the verge of withdrawing and declined their request to confer with financial consultants.
They needed to make a decision immediately, without consulting the person who had over overvalued the firm in the first place.
Daymond agreed to finance David and Randy’s inventory in exchange for $200,000 and 17.5% equity after much deliberation and discussion.
Bombas made their Shark Tank debut in Episode 1 of the sixth season with their specially created wacky trendy socks.
They were seeking $200,000 for 5% interest in Bombas, which had a $4 million valuation at the pitch. They negotiated the contract with Daymond for $200,000 in exchange for 17.5 percent equity in Bombas.
How Does Bombas Make Money?
They recently began making money through selling and giving initiatives. After six years, Bombas’ annual income exceeds $100 million.
Bombas’ success led to creating a crowdfunding campaign on Indiegogo, which greatly scaled their business.
Bombas currently earns money by selling athletic socks and offering a varied range of socks and t-shirts for children, adults, and women.
What Happened To Bombas After Shark Tank?
According to Daymond, Bombas was one of his three top investments during Shark Tank history.
He has worked with Randy and David to improve their brand and raise awareness through high-profile engagements, such as a visit to the
Today Show resulted in a large rise in sales and a predicted annual income of $1.1 million.
Bombas socks are among the best. Additionally, the business has provided over 42 million pairs of socks to homeless individuals.
Bombas has a positive customer review and feedback, and its primary goal is to assist homeless shelter residents.
Bombas has recently expanded its product line for children, adults, and women, including t-shirts and innerwear in addition to socks.
Their commitment to customer service has resulted in zero negative internet evaluations and an almost endless stream of positive comments regarding the company and goods.
What is the Net Worth of Bombas?
Bombas raised over a million dollars in finance from family members. The company exceeded $100 million in revenue in 2018, following their win on ABC’s SHARK TANK in September 2014.
The company plans to distribute 35 million pairs of socks before April 2020.