Kevin O’Leary Hated This $1.3 Billion Company So Much He Warned Other Sharks to Not Invest In It and It Was His Biggest Mistake
When it comes to investing, even the sharpest of minds can sometimes make a mistake. Kevin O’Leary aka Mr. Wonderful is one of the most prominent faces on Shark Tank and has built a reputation for being brutally honest and extremely calculated when it comes to making deals.
However, even the greatest of Sharks is not immune to making mistakes. In an ironic turn of events, O’Leary’s disdain for one company not only cost him a lucrative opportunity but also seems to have left him red-faced for how he treated the now $1.3 billion worth company’s founders over a decade ago.
Kevin O’Leary’s hated this one company on Shark Tank
Kevin O’Leary has built a reputation for himself for being too meticulous when it comes to investing. Over the years, Mr. Wonderful has built up a huge empire, thanks to his calculated business decisions. But even the best make mistakes and O’Leary’s biggest mistake was not investing in the sock company, Bombas.
Over a decade ago, Bombas co-founders David Heath and Randy Goldberg appeared on Shark Tank, hoping to secure a deal. Despite being in profit, sharks did not like their 9-dollar price point and their donating a pair of socks to the needy with every pair of socks they sold (see YouTube).
Seeking $200,000 in exchange for a five percent equity stake, no Shark liked their offer, with O’Keary declaring that a four million dollar valuation in a total commodity of socks is ludicrous. Calling them ‘sock cockroaches,’ Mr. Wonderful even advised the rest of the sharks to not invest in the company and one by one every shark quit except, Daymond John.
Not investing in Bombas was Kevin O’Leary’s biggest mistake
The Bombas co-founders felt extreme opposition from every Shark Tank shark, facing criticism over trying to raise their sales by hiring an outside specialist to their 5-dollar margin price. However, the two ended up impressing the fashion guru, Daymond John.
Reducing their initial demand to seeking $200,000 for 10% equity and after a lot of back and forth and more cuts in stakes, Bombas company founders David Heath and Randy Goldberg managed to secure a deal with John. In doing so, the deal turned out to be lucrative not only for the sock company but also for John.
Today, Bombas is the biggest company and top-selling product in the history of Shark Tank with more than $1.3 billion in sales (via The Sharchives and Forbes). Having donated more than 100 million essential clothing items to those in need, Bombas might be Daymond John’s only company in Shark Tank’s top 15, it is the biggest of them all.
Shark Tank is available to be streamed on Hulu.
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