What is Bombas?
Reengineered athletic socks are one of Bombas’ best-known products. They’re also concerned about the plight of the poor and houseless. They give away another pair of socks for every pair you buy so that when you buy one, you’re helping someone else. Almost 45 million products have been delivered by them so far.
High-end sock brand Bombas has a wide variety of styles and patterns for both men and women in a variety of colors and patterns. No-show, ankle, quarter-, and knee-high socks are all options. They also have a wide range of options for players from a variety of sports. There are also dress-up variants for more formal occasions. As a way to help the homeless and others in need, Bombas gives away one pair of socks for every pair sold.
Who Is the Founder of Bombas?
David Heath and Randy Goldberg founded Bombas in 2013. They became fast friends after meeting at a media start-up business they both worked for. The headquarters of the Bombas company is located in New York City. David and Randy discovered that the most in-demand item for homeless people on Facebook was socks.
According to their website, Bombas socks were researched and developed over the course of two years. Before launching Bombas, Randy Goldberg and David Heath worked at a fledgling media company.
These board members have remained in place and are still in charge of the company’s operations today. Under its relentless leadership, the organization has achieved tremendous success. In 2018, Bombas generated over $100 million in revenue.
Before Shark Tank: Bombas
This Salvation Army statement inspired David Heath and Randy Goldberg to start their own sock company. They drew inspiration from Tom’s Shoes, which donates a pair of shoes for every pair sold. He worked for two years with Randy and David to help them develop and test Gold Toe Socks.
A long-standing, reliable sock manufacturing heritage helped them develop the design of the socks. When Randy and David first started their sock company, they called it Bombas, which means “bumblebee,” and they wanted to use it as a way to aid the community and those who are less fortunate. More than $140,000 was raised throughout the month-long Indiegogo campaign.
With its humanitarian component and dedication to customer service, the company attracted investors from all walks of life with similar philanthropic goals. After viewing a Facebook post stating that socks were the most desired article of clothing at homeless shelters in 2011, David got the idea to start the company.
After chatting with Randy, the two were inspired to start a sock company that gives back to the community. As a result of seeing this strategy work for other organizations, they decided to try it themselves. After that, they experimented with different materials, sizes, and features to come up with the perfect pair of ankle socks while still working full-time.
David had a personal stake in the outcome of the work. It was difficult for a child with attention deficit hyperactivity disorder (ADHD) to locate socks that were cozy. Because of them, he suffers from a variety of mental and physical ailments. In just two years after quitting their professions in 2013, the founders had raised over $1.25 million.
As Randy and David prepared to go into the Shark Tank, they had high hopes for Bombas. They were able to achieve this because of the support of family and friends, both in the form of donations and in-kind finance.
The team felt that an investor with expertise in fashion and clothing was necessary before hitting the market in order to prosper and build the firm to its maximum potential. Consequently, they applied for Shark Tank.
How Was the Shark Tank Pitch of Bombas?
There had been a consistent method of selling sports socks for years, the entrepreneurs said, and they wanted $200,000 for a 5% interest in Bombas. “The most comfortable sock you’ll ever wear” was the culmination of two years of extensive research and design by Randy, who shared his findings with the panel. David spoke about the charitable aspect of their business, stating that for every pair of socks sold, they donate one to people in need.
Forearm seams and the groundbreaking arch stitch were omitted, and the socks were distributed with explanations of the style’s evolution. Pima cotton was used in the production, and the socks’ stitching was improved. Creating a high-quality product and also giving back to the community impressed the panel members.
After many years of training, Robert wondered what made Bombas stand out from its many competitors in today’s market. After doing a thorough investigation of all of the top-selling sports socks, David revealed that they found that the socks that cost more than $20 were the most popular, while the ones that cost less were less popular.
While still donating a pair of socks with each pair of socks sold, they undertook extensive research to bring production costs down to just $9 for their product. As of this writing, there are no plans to enter into a wholesale agreement at this time. Bombas had made $450,000 in sales in its first nine months of operation. All transactions had been carried out online, which surprised Mark.
David estimated that their first year’s sales would be $1.1 million, their second year’s sales would be $2.7 million, and their third year’s sales would be up to $4.9 million. In addition to shipping and gift fees, their profit margin was on average 54%. Although Bombas’ growth had slowed in recent months, David secured $900,000 in venture money and valued the company at $4 million.
With little market exposure, Kevin thought the valuation was “ludicrous” and pulled out. Even while Bombas was overjoyed at the prospect of bringing in $400,000, Robert was concerned that socks, as an accessory, would not do well on their own. According to David, they had not invested any money in acquiring new customers or advertising their business, and all of their sales had come as a result of good word of mouth.
The money they wanted would be used to hire a manager to oversee the acquisition of new clients, which would greatly increase the company’s base sales. Robert was pleased with the socks, but he left because he was unhappy with their answer. For Lori, the policy of outsourcing client acquisition was a mistake because they should be actively seeking out and signing new customers. There were only Mark and Daymond left after she had vanished.
Bombas’ ability to develop earnings was under threat since Mark believed the markup should be larger. As a result, he left the company because of his concerns that it had reached a plateau too fast. Daymond was the only Shark on the team that had prior fashion industry experience. David’s offer of $200,000 and a 10% stake in Bombas was upped.
After revealing that he was on the verge of leaving the Sharks, Daymond reacted with the $200,000 for 20 percent of the business, which was accepted by the group. They had little room to maneuver at this point. It was Daymond who told them that he was still on the edge of resigning, and he turned down their request to meet with financial experts.
A decision had to be made swiftly, without contacting the individual who had originally overvalued the company. After much consideration and discussion, Daymond decided to finance David and Randy’s inventory in exchange for $200,000 and 17.5 percent equity. Their quirky, stylish socks were featured in Episode 1 of the sixth season’s Shark Tank premiere.
At the pitch, Bombas was valued at $4 million, and they wanted $200,000 for a 5% stake. They agreed to pay Daymond $200,000 for 17.5 percent of Bombas in exchange for the contract.
How Does Bombas Make Money?
They have recently started selling and donating in order to generate revenue. For the first time in six years, Bombas’ annual revenue has exceeded $100 million. The success of Bombas prompted them to launch an Indiegogo crowdfunding campaign, which allowed them to grow their business tremendously. Sporty socks and t-shirts for children, adults and women are the primary sources of revenue for Bombas at the moment.
After Shark Tank, What Happened to Bombas?
In the history of Shark Tank, Daymond says Bombas was one of his top three investments. With Randy and David, he has helped them to develop their brand and build exposure through high-profile events, such as a visit to the White House. Because of the Today Show, sales went up significantly, and an estimated $1.1 million in revenue was generated for the year.
Among the very best socks is Bombas. Over 42 million pairs of socks have been donated to the homeless by the company. The primary objective of Bombas is to aid the occupants of homeless shelters, and it has received an excellent response from its customers.
In addition to socks, Bombas has lately added t-shirts and innerwear to its assortment of products for children, adults, and women. No unfavorable online reviews have been posted against the company or its products as a result of its dedication to customer service.
What Is the Net Worth of Bombas?
Bombas was able to raise more than a million dollars from his family. Following their victory on ABC’s Shark Tank in September 2014, the company made more than $100 million in revenue in 2018. Before the end of April 2020, the company hopes to have distributed 35 million pairs of socks.