In Season 6 Episode 1, Randy Goldberg and David Heath appeared on Shark Tank seeking $200,000 for 5% of their quality socks, Bombas.
Here’s a quick recap before we dive into the Bombas Shark Tank update.
Shark Tank Pitch Recap
- : A $4 Million valuation in a total commodity sock is ludicrous. “I think reality will strike because you guys are still sock cockroaches. You’re nowhere. You have no market share yet, no retail exposure. If any of the Sharks give you money at that valuation, I will forbid it.”
Out - : He finds the challenge is determining whether or not it will work as a stand alone online business for the longtime or if it’s a supplementary. He’s not convinced it will work as a stand alone product. They also haven’t done a good job of articulating their key advantages going forward.
Out - : She hates when entrepreneurs say they want to use the money to hire in people. She thinks the two of them should be doing everything they can to run it themselves at this point.
Out - : “At 9 months in, you should not be plateauing. There’s just not enough margin dollar in each sale, in each customer and that’s always going to make you run faster and further.”
Out - With only Daymond left, they make a special offer just for him.
Revised Offer: $2 Million for a 10% equity stake. - : He was about to go out, but he likes this new valuation. They appear genuinely interested in making a deal and he because of that, he is willing to work with them.
Counter Offer: $200K for a 20% equity stake - They let Daymond know that they want more money for advertising, marketing and too build out a team.
- After hearing what they plan to do with the money, Daymond agrees to finance inventory.
- They make a new counter offer.
Counter Offer: $200K for a 15% equity stake + $200K line of credit. - : He will meet them somewhere in the middle.
Counter Offer: $200K for a 17.5% equity stake + financing for inventory - David and Randy want to discuss the offer with their CFO but Daymond refuses – he believes the CFO is responsible for the terrible valuation they walked into the Tank with.
- Cautious of the chance to lose their only offer, Randy and David accept Daymond’s offer of $200K for a 15% equity stake in Bombas including inventory financing.
Was Bombas a good deal for Daymond? Or are they the sock cockroaches that Kevin claimed them to be?
| Season 6 Episode 1 | |
|---|---|
| Episode Number | |
| Network | |
| Air Date | September 26, 2014 |
| Business Pitch | uniquely engineered funky stylish socks |
|---|---|
| Entrepreneur/Founder | Randy Goldberg and David Heath |
| Asked For | $200,000 for 5% |
| Deal | $200,000 for 17.5% |
| Shark | Daymond John |
| Business Status | In Business | |
|---|---|---|
| Estimated Valuation | ||
| Website | bombas.com |
After Shark Tank Update
Where Are They Now
Bombas is still in business. However, they have since pivoted from socks only to offering underwear, t-shirts, and slippers for men, women, and children. Customers can buy their range of products on its website, after which the company will donate the same item to homeless shelters.
To date, the company has donated over $50 million worth of clothing. Likewise, customers can also buy Bombas can on Amazon and through merchandise distributors worldwide. Both founders, Randy Goldberg and David Heath are still with the company.
I believe that you are both doing a wonderful humanitarian service to donate one pair of socks for every one that you sell. This is an unselfish. gift to those in need. I hope that you have someone to assist in marketing to get them to the places that are most in need of them at different times of the year. Thank you so much for your kindness and goodness.
I just received an order of socks that I don’t believe I ordered. I’ll be researching that but in addition the quality of the sock had diminished considerably. I wonder if they are counterfeit.
Eukraine: any thoughts around GoFundMe for warm socks and warm caps? Would love to be involved but no clue how to start. Any ideas from management here?
I received a pair of the slipper socks as a gift. Best gift ever! I love how they feel on my feet. I don’t like shoes or socks but these feel wonderful, like walking on a cloud. Also, knowing the company donates a pair when you purchase one makes me so happy. I like doing business with caring people.
I have got my first pair and it definitely won’t be my last!
Thank you!