Credit: ABC Entertainment Press Site
Highlights
- Daymond John’s entrepreneurial journey is a motivation for all budding entrepreneurs.
- His niche expertise in the world of fashion has made him grab huge deals on Shark Tank.
- Most of the fashion brands he’s invested in have turned into multi-million dollar companies.
If you’re a regular viewer of Shark Tank, you must have seen and related to the struggle stories of entrepreneurs. But when it comes to seeking motivation, the stories of Sharks who take the lead and guide the entrepreneurs in their journey are equally inspiring.
Here’s a small insight into the rise of Daymond John, the founder of the leading apparel brand FUBU. From being forced into being an entrepreneur at an early age to now owning a $6 billion company, his journey offers the perfect motivation that rising entrepreneurs can acquire.
But here, we’ll talk about his amazing time at Shark Tank and his dominance in the fashion vertical. Whether it be socks, bow ties, or shoes, Daymond has profited handsomely by making smart investments in fashion brands.
Below is a roundup of some of the best Daymond John fashion investments that paid off:
1. Bombas
This is by far Daymond’s biggest fashion investment. With lifetime sales of $1.3 billion, Bombas was the number one Shark Tank business.
Let’s rewind a bit.
Randy Goldberg and David Heath, two budding entrepreneurs came to the Sharks with their sock brand named Bombas. Giving a quick background about its inception they revealed that socks are the most requested clothing item in shelters for the homeless. When the entrepreneur duo learned about this, they thought of making good quality socks and donating a pair for every sold pair.
Seeking an investment of $200K for 5% of their company, the entrepreneurs said that the socks are colorful and perfect for athletes. They also have many other features, such as Y stitching in the ankles, a honeycomb support system, and “stay up technology.”
How did the negotiations go?
The founders revealed that they were eyeing on making $1.2 million sales in a year. Hearing this, Kevin called them “sock cockroaches,” and opted out of the deal. Robert too followed as he wasn’t happy with their answers on customer acquisition. Next in line was Lori who backed out as well.
Mark felt the margins were way too low and hence couldn’t make an offer. The only shark left was Daymond, who asked them to consider a new valuation. Kevin urged them to do the same. After several rounds of discussions, the final deal between Daymond and the entrepreneur duo was finalized at $200K for 17.5% equity.
2. Sun Staches
With a thumbs up from celebrities like Justin Bieber and Bill Murray and annual revenue of about $5 million, Sun Staches is another breakthrough investment by Daymond John.
Here’s a quick recap of its Shark Tank appearance:
David Levich, Eric Liberman, and Dan Gerson are buddies and business partners who came up to pitch Sun-Staches, funky sunglasses with mustaches attached. Projecting these party shades as facewear, they described how they offer different themes for every occasion. Be it Hanukkah or sporting events, one can have fun with its multiple variety of characters like cowboys, pirates, and Ninja Turtles.
They further revealed that they sell on Amazon and Urban Outfitters and have made a revenue of about $6 million. Now, they’re looking to expand their retail reach.
What was Daymond’s offer?
The offer proposed by the trio was $300K for a 5% equity stake. Kevin didn’t like the valuation at all and marked himself out. Lori wasn’t excited either and was out. Next was Robert, who followed the same and was out.
Kevin jumped back into the chat and asked them to rethink their valuation by suggesting to raise the equity up to 20%. Hearing his advice, they revised their offer to $300K for 10% equity.
Daymond offered assistance with licensing and offered $300K for 25%. The trio countered with $300K for 12% if Mark and Daymond made a joint deal. But Mark didn’t agree to it. Ultimately, the final deal was sealed at $300K for 20% with Daymond.
3. One Sole
This was one of Daymond John’s earliest investments in the show. The internationally renowned brand now makes $6 million on an annual basis.
Let’s revisit its Shark Tank journey:
Seeking an investment of $500K for 20% of her company, Dominique McClain Barteet pitched her product One Sole Shoes to the Sharks. In her pitch, she discussed her journey from pharmacist to fashion entrepreneur.
She stated that she wanted to come up with a solution that would allow people to change the color and style of their shoes quicker than ever. With One Sole, people can use interchangeable pieces of shoes. So, no more buying hundreds of pairs to get different-colored shoes. She further said that this would be perfect for travelers and would help women save a lot of baggage space.
How did the Sharks react?
Upon being invited to try the shoes, Barbara Corcoran called it “heaven.” However, Mr Wonderful wasn’t happy with the valuation until he learned that it had already earned more than $20 million in sales. Plus, the product has reached 30 countries with profits of $1 million per year.
The Sharks were impressed with the numbers. Kevin asked if she was willing to sell her entire business. Robert also jumped in and made an offer of $100K for 10% equity on the condition that Barbara Corcoran, Kevin O’Leary, Kevin Harrington, and Daymond John offered an additional $100K for 10% each.
Before she could think about it, Daymond entered the chat and offered $500K for 35% equity. Barbara marked herself out. Kevin Harrington and Robert made a second attempt with their offer of $500K for 50% equity. In the end, Barteet accepted Daymond’s offer.
Bottomline
Daymond John’s significant success in the fashion arena coupled with his multiple-million deals on Shark Tank highlight his sharp eyes for promising businesses. His success stories not just underscore his business acumen but also act as a testament to his unwavering resilience. His legacy in fashion proves that if you set your goals clearly and relentlessly work towards it, nothing is unachievable.
References
1. Shark Tank’s Most Successful Brand of All Time Wasn’t Even Supposed to Be a Business at First. Here’s How It Became One With $1 Billion in Lifetime Revenue., Entrepreneur, Written by Amanda Breen, Edited by Jessica Thomas
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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