How I Built This with Guy Raz: Bombas – David Heath and Randy Goldberg (2022)
Release Date: January 13, 2025

Introduction: From Skeptics to Sock Pioneers

In this compelling episode of How I Built This, host Guy Raz sits down with David Heath and Randy Goldberg, the dynamic duo behind Bombas—a company that redefined the sock industry with an innovative product and a heartwarming mission. Known for their appearance on Shark Tank, Heath and Goldberg share the inspiring journey of transforming a seemingly mundane product into a multi-million-dollar brand while making a significant social impact.

Early Doubts and Entrepreneurial Roots

The seeds of Bombas were sown amidst skepticism and entrepreneurial experiences. David Heath recounts his initial foray into sales with Cutco, where his exceptional performance was both a blessing and a challenge.

[07:14] David Heath: "And I, like, bought full in. I was like, this is it. I'm like, I could do this. I'm a great salesperson."

Heath's success at Cutco not only honed his sales skills but also instilled a belief that a great product could almost sell itself. Meanwhile, Randy Goldberg's background at Urban Daddy, a men's lifestyle website, provided him with valuable insights into branding and copywriting.

Meeting the Partners: A Blend of Contrasts and Common Goals

Heath and Goldberg met in 2007 while working at Urban Daddy. Initially, their different personalities caused some friction, but mutual respect and shared entrepreneurial aspirations quickly turned them into fast friends.

[25:18] Guy Raz: "And when did you start to... was he just like an office friend and you would just kind of chit chat about ideas?"

[25:32] David Heath: "I think because we spent nine hours a day together, we got to know each other's strengths, weaknesses, you know, what they valued very, very quickly."

Their complementary skills—Heath's sales acumen and Goldberg's creative prowess—laid the foundation for their future collaboration.

Identifying the Opportunity: Socks as a Social Impact Vehicle

The pivotal moment for Bombas came in February 2011 when Heath came across a post from the Salvation Army highlighting that socks were the number one most requested clothing item at homeless shelters. This revelation sparked the idea of combining a profitable business with a meaningful social mission.

[31:22] Guy Raz: "So the spark was, wait a minute. If this is the number one most requested thing at homeless shelters, maybe there's a model we can build similar to Tom's or to Warby Parker."

Randy Goldberg adds that community impact was a driving force:

[32:08] Randy Goldberg: "It was community first, I'd say."

Product Development: Crafting the Perfect Sock

Without prior experience in the sock industry, Heath and Goldberg sought expertise from Steve Lowenthal, Heath’s godfather, a seasoned professional in sock manufacturing. This connection was instrumental in navigating the complexities of product development and manufacturing.

[37:07] David Heath: "He introduced us to this factory partner in Asia. And because of his legacy and credibility in the sock business, they were willing to work with us."

The duo embarked on an exhaustive product development journey, iterating through hundreds of samples to perfect their sock design. Attention to detail was paramount, from seamless toes to honeycomb arch support, ensuring that each pair of Bombas socks offered superior comfort and durability.

[50:19] Randy Goldberg: "Just for the calf sock tension level alone, it took us 137 tries."

Launching Bombas: The Indiegogo Campaign

In early 2013, armed with a refined product, Heath and Goldberg launched an Indiegogo campaign to raise capital for their first production run. Their aggressive and relentless approach paid off, raising $25,000 in the first day—far surpassing their initial $15,000 goal.

[56:58] David Heath: "We did $25,000 in our first day."

The overwhelming response validated their product-market fit and provided the necessary funds to kickstart Bombas. They offered multiple styles and colors, anticipating higher demand and planning for scalability.

Shark Tank: The Breakthrough Moment

Despite their success, the journey wasn’t without challenges. In April 2014, an unexpected opportunity arose when a Shark Tank producer reached out after noticing their Indiegogo campaign. After a poignant moment where Goldberg contemplated skipping the show due to his father's passing, both Heath and Goldberg decided to participate, honoring both their mission and personal commitments.

[68:22] Randy Goldberg: "Dave and I had a conversation. ... We decided we were keeping the date."

On Shark Tank, they pitched Bombas as "athletic leisure socks engineered to look better, feel better, and with a mission to help those in need." Initially, the sharks were unimpressed, but Daymond John saw potential and offered to finance their inventory.

[70:24] Randy Goldberg: "Bombas are athletic leisure socks engineered to look better, feel better, and with a mission to help those in need."

Though the initial deal was not ideal, Heath and Goldberg renegotiated after securing a $1 million seed round, ensuring Bombas retained control and could focus on sustainable growth without diluting their ownership.

Post-Shark Tank Surge: Managing Explosive Growth

The airing of the Shark Tank episode led to an explosive surge in orders, causing Bombas' website to crash due to unprecedented traffic. Faced with fulfilling over 2,300 orders, they outsourced their logistics to a third-party provider, allowing them to scale efficiently without compromising customer experience.

[73:27] David Heath: "We had our website crashed, it was terrible... we were trying to scale up customer service people."

This period marked the beginning of Bombas’ focus on customer service and operational excellence, with team members dedicated to ensuring customer satisfaction and maintaining their mission-driven ethos.

Funding and Growth Strategy: Choosing Profitability Over Rapid Expansion

Despite initial resistance from venture capitalists who viewed the sock market as unexciting, Bombas opted to raise only necessary funds to avoid diluting their ownership. They secured a $1 million seed round followed by a $3 million angel round, enabling them to focus on building a strong, profitable business.

[62:44] David Heath: "We said, okay, like maybe let's not push it as hard as we could and let's just focus on building a great brand with great product and give back to the community."

This strategic choice allowed Bombas to prioritize sustainable growth and maintain control over their brand and mission, avoiding the pitfalls of rapid, unchecked expansion often fueled by excessive venture capital.

Navigating Challenges: Server Crashes and Operational Hurdles

The rapid post-Shark Tank growth brought significant operational challenges, including server crashes and the need to scale customer service. Heath and Goldberg responded by implementing phased order fulfillment and outsourcing logistics, ensuring timely delivery and maintaining their promise to customers.

[76:32] Randy Goldberg: "This was a big issue."

Their ability to adapt quickly and prioritize customer satisfaction helped Bombas navigate these hurdles effectively, strengthening their reputation and customer loyalty.

Maintaining Culture Amid Growth: Building a Resilient Team

As Bombas grew, Heath and Goldberg remained committed to preserving their company culture centered around collaboration, innovation, and social impact. They consciously surrounded themselves with talented individuals who complemented their skill sets, fostering an environment where everyone was aligned with the company's mission.

[76:32] David Heath: "We just started to fill in the gaps around us. So eventually that was customer service marketing, product design."

This intentional approach to team-building ensured that Bombas maintained its core values even as the company expanded, contributing to its long-term success.

Philosophy and Future: Embracing Luck and Hard Work

Reflecting on their journey, Heath and Goldberg emphasize the interplay of preparation, hard work, and fortunate opportunities in building Bombas. They attribute their success to being prepared for opportunities, leveraging their skills, and embracing the serendipitous moments that propelled the company forward.

[83:52] David Heath: "Luck is when preparation meets opportunity. And so I think for me, we were very opportunistic and we were really prepared."

Their philosophy centers on sustainable, profitable growth and staying true to their mission, allowing Bombas to thrive without succumbing to the pressures of rapid, venture-driven expansion.

Legacy and Commitment: Promises Kept

One of the founders, Heath, made a promise to donate a million pairs of socks, which became a key milestone for Bombas. Fulfilled through dedication and strategic planning, this accomplishment highlights the company's unwavering commitment to their social mission.

[86:03] Randy Goldberg: "We get to a million pairs donated... We thought that this would take 10 years."

Heath honored this promise by getting a tattoo, symbolizing Bombas' commitment to giving back and reinforcing their brand identity centered around community support.

Conclusion: A Balanced Blend of Strategy and Serendipity

Heath and Goldberg's journey with Bombas is a testament to the power of recognizing overlooked opportunities, maintaining steadfast dedication to a mission, and balancing strategic planning with the flexibility to seize fortunate moments. Their story underscores that meaningful innovation often lies in unexpected places and that combining business success with social impact can create a lasting legacy.

As they continue to navigate the future, Bombas stands as a beacon of how thoughtful entrepreneurship, coupled with resilience and a strong mission, can transform industries and positively impact communities.

Notable Quotes:

• David Heath [07:14]: "I was like, this is it. I'm like, I could do this. I'm a great salesperson."

• Randy Goldberg [32:08]: "It was community first, I'd say."

• Randy Goldberg [50:20]: "Just for the calf sock tension level alone, it took us 137 tries."

• David Heath [56:58]: "We did $25,000 in our first day."

• Randy Goldberg [70:24]: "Bombas are athletic leisure socks engineered to look better, feel better, and with a mission to help those in need."

• David Heath [83:52]: "Luck is when preparation meets opportunity."

Timestamp Index Highlights:

• [03:14] – David Heath introduces the skepticism surrounding building a sock company.
• [07:14] – Heath discusses his sales success at Cutco.
• [13:28] – Randy Goldberg shares his experience of being laid off from a tech consulting company.
• [31:22] – The inspiration behind Bombas is revealed.
• [37:07] – The role of Heath’s godfather in Bombas’ product development.
• [56:58] – Indiegogo campaign success.
• [67:58] – The challenges and emotions leading up to the Shark Tank pitch.
• [73:27] – Post-Shark Tank surge and website crash.
• [83:52] – Reflection on luck and preparation.

Final Thoughts

The Bombas episode of How I Built This serves as an inspiring blueprint for entrepreneurs aiming to blend business acumen with meaningful social impact. Heath and Goldberg's story illustrates that with the right combination of preparation, perseverance, and strategic decision-making, even the most unassuming products can achieve remarkable success while making a positive difference in the world.