Cold plunging, or submerging your body in freezing water is a rising trend among millennials. It has many health benefits, but the hassle of buying ice bags and setting it up is a nuisance. Enter Plunge, the bathtub that can produce clear, cold water. Founders Ryan Duey and Michael Garrett pitched it to Shark Tank and made a deal with Robert Herjavec. As of 2023, Plunge is worth $24 million.
About the Founders
Michael Garret is a native of Arizona, United States. After graduating from Penn State University, he discovered the art of float therapy and it inspired him to found Reboot Float & Cryo Spa in 2012.
His friend Ryan Duey, is from Sacramento, California and he studied international business at Cal Poly. After earning his degree, he became an elementary teacher in Spain.
In 2011, he went back home and worked as an account executive for San Jose Earthquakes, a football club. Ryan also got into float therapy, founding companies such as Capitol Floats and Float Biz Startup.
Founding the Company
When the pandemic started, Michael’s float spa business was forced to close down. The entrepreneur then experimented with cold plunges and its benefits for fat loss, body recovery, immunity, and more.
However, he found cold tubs very expensive and his father joined him in an effort to come up with a more affordable solution. It eradicated the need to buy pounds of ice and they invited Ryan Duey to join them after making a prototype.
The company officially launched in 2020, and they operated out of Michael’s garage. A year after launching the startup, the duo made a whopping $4.9 million in revenue.
Shark Tank Appearance
In 2021, Plunge was already in a great place but Ryan Duey and Michael Garrett wanted to expand operations. The guys appeared on season 13 of Shark Tank, seeking to raise $1.2 million for a 5% equity stake.
The two gentlemen had a very amusing pitch, where they invited Robert Herjavec to try a cold plunge in front of everyone. Robet’s reaction had the other Sharks in stitches, he sounded like a train whistle! However, the Sharks weren’t too excited about the equity being offered.
Nevertheless, four Sharks made offers, which put the founders in a tough situation. The most favorable for them was Robert’s offer of $2.4 million for 15%. Cuban was keen but they countered and Robert agreed to invest $1.2 million in cash and loan them $1.2 million for 12%.
After Shark Tank
After featuring on national television, the company got a strong boost in orders and won’t have a problem paying off Robert’s loan. The fact Robert got into the tank made it a more memorable episode, this will help increase the distribution of the episode online and drive more free PR.
Apart from the original product they showed on Shark Tank, they now sell pro versions and commercial cold plunges. You can purchase them on TheColdPlunge.com and at several Plunge facilities in Greater Sacramento. They’ve raised the cost of their product from $4,800 to $4,990 but you can also pay in monthly installments with Affirm.
On their website, the device has a 5-star average review rating from 238 customers. With Robert’s recent investment, the company is valued at $24 million. The startup is yet to release any recent sales figures but they should be making around $600,000 to $1 million in revenue per month. Despite their strong sales, it will take Robert a long time to get his money back!