Bombas by David Heath and Randy Goldberg is one of the most successful products pitched on ABC’s Shark Tank. Daymond John was the one who invested in the brand that reinvented numerous aspects of athletic socks. This made them beneficial for a wide range of sports. As of 2022, Bombas has a net worth of $100 million.
About the Founders
David Heath and Randy Goldberg are from the Greater New York Area. David’s parents were businesspeople who influenced him to study entrepreneurship at Babson College. Randy is a graduate of Georgetown University’s business school.
Heath started earning money at a young age. In high school, he worked as a DJ for parties. Later on, he also tried his hand at salesmanship and sold knives door to door.
Goldberg, on the other hand, mastered copywriting, branding, and digital creativity. Under his company, Tennis Partners, he’s consulted for brands such as Vitaminwater, Sony, and Nike. He also founded a marketing firm called Pop Up Flea.
The two entrepreneurs were introduced to each other while working at the same media startup. Their business idea came when they heard a Salvation Army major say that the clothing item with the highest demand in homeless shelters is socks.
They believed they could help with this issue. So, they developed a business model, marketing socks and donating a pair to the homeless for every unit sold. In 2013, they formed Bombas, which is Latin for the word “bee.”
David and Randy chose this name because bees work together to make their home a better place. Their clothing startup received crowdfunding from Indiegogo. The duo initially asked for $15,000, but they got more than $140,000.
Shark Tank Appearance
About a year after creating their sock brand, Heath and Goldberg went to Shark Tank in hopes of raising more capital. They were seeking $200,000 in exchange for a 5% stake in their business.
The Sharks appreciated the philanthropic aspect of their business model, and they were impressed with how sophisticated the product was. It featured many sock innovations, such as Y stitching, blister tabs, reinforced foot beds, seamless toes, and a honeycomb support system.
However, most of the investors were afraid of how competitive the sock industry is. Daymond John, who has a long history in the clothing business, was the one with the most interest. His offer of $200,000 for 17.5% of the company was accepted.
After Shark Tank
Bombas ended up being one of Daymond John’s top three investments on the show. He has collaborated with Randy and David to strengthen their brand and boost exposure.
Now, it is one of Shark Tank’s most successful ever businesses. Apart from athletic socks, the company has lately expanded its product portfolio for adults, children, and women to include t-shirts and underwear.
The annual income of Bombas is estimated to be over $100 million. To date, they’ve given away over 50 million pairs of socks. They have raised over $150 million in funding over four rounds and were exploring options to IPO but it appears these plans are on hold.
In 2022, they are expecting to make more than $237 million in revenue. But for now, their company is valued at $100 million.