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Deal in Focus: Plunge – From Garage Project to Wellness Powerhouse

⚖ Editor’s Note
This article is for informational purposes only. Invst Guru is not affiliated with Plunge, Wefunder, or any broker-dealer. This content does not constitute investment advice or a solicitation to invest. For current fundraising activity, please refer to the company’s official Reg CF offering documents or consult a licensed advisor.

Introduction

Every so often, a consumer company captures both cultural momentum and measurable growth. Plunge, based in Sacramento, California, has become one of those rare cases. In less than five years, it has gone from an improvised prototype in a garage to more than $200 million in cumulative revenue and a customer base of over 30,000 people worldwide.

Plunge builds cold plunge systems and high-heat saunas, supported by a mobile app that connects the hardware with a digital wellness experience. Its products serve both households and commercial clients such as gyms, spas, and hospitality operators.

The company is conducting a Regulation Crowdfunding (Reg CF) campaign on Wefunder, giving its community and the public a chance to examine its progress and plans.

Origins: From Setback to New Category

The story of Plunge began with disruption. Co-founders Michael Garrett and Ryan Duey both ran float tank businesses that were forced to shut down during the pandemic. Rather than walk away from wellness entirely, Garrett began experimenting with cold plunge designs alongside his father. The early prototypes were assembled in a garage, refined through trial and error until their functionality matched the vision.

They bought the domain “thecoldplunge.com” for $10 and began introducing their creation to early adopters. Soon after, Duey joined forces with Garrett. Together, they built the first 20 plunges themselves, shipping units directly from that garage.

That bootstrap approach defined the company’s early culture. Without outside equity financing, they relied on creativity, grit, and customer enthusiasm. By 2022, after generating over $1 million in sales, the founders brought their prototype onto national television through an appearance on Shark Tank. The exposure propelled awareness, even as they continued to scale production through debt financing rather than traditional venture capital.

Building Brand Momentum

Momentum accelerated when Plunge partnered with wellness influencers like Andrew Huberman, Rich Roll, and Aubrey Marcus to seed their products. These figures were already discussing the benefits of cold exposure in podcasts and scientific forums. Their integration of Plunge products created credibility and sparked organic demand.

The company also secured partnerships with CrossFit, Liquid Death, and the New York Yankees, embedding its brand within sports, fitness, and lifestyle culture.

Through these touchpoints, Plunge positioned itself as the definitive cold plunge company in the United States. Competitors existed, but few combined affordability, durability, and aesthetics at scale. By designing products meant to be displayed in homes and businesses—rather than hidden out of sight—Plunge differentiated itself in a category filled with utilitarian equipment.

Product Approach

Plunge offers a suite of products that bridge consumer design with commercial functionality.

• Cold Plunge Systems: Engineered with advanced filtration, ozone sanitation, and continuous cooling technology. These systems eliminate the need for ice, a significant inconvenience for traditional setups.

• Premium Saunas: Crafted from cedar and designed with ergonomic backrests and adjustable benches.

• Mobile App Integration: The Plunge App allows users to control temperature, track sessions, and receive maintenance reminders. Future updates may include wellness coaching and integrations with Oura and Whoop.

• Commercial Solutions: The Plunge All-In Commercial Max meets health department certification standards, giving gyms and spas an operational edge.

Market Opportunity

Cold and heat therapy represent a growing but underdeveloped market. Analysts estimate the U.S. combined cold plunge and sauna category at $8 billion today.

• Residential Market: Approximately 5 percent of households own hot tubs, compared to less than 1 percent owning cold plunges or saunas. Reaching parity with hot tub adoption would expand the U.S. residential market opportunity to over $40 billion.

• Commercial Market: Roughly 70 percent of major gyms offer saunas, yet only 6 percent offer cold plunges. If adoption rose to match sauna penetration, the U.S. commercial market could exceed $3.4 billion.

• Global Expansion: Cold and heat therapy are culturally recognized practices in Finland, Japan, and Germany. Expanding beyond the U.S. presents additional growth potential.

While past revenue and category growth provide context, past performance is not indicative of future results.

Financial Performance

Plunge’s financial trajectory highlights both opportunity and volatility.

• 2020–2021: Early garage-stage sales.

• 2022: Surpassed $1 million in sales and appeared on Shark Tank.

• 2023: Generated $82 million in annual revenue, driven by residential demand.

• 2024: Commercial sales grew 111 percent year-over-year to $13 million. The sauna line added $9 million in its first full year. Cumulative revenue surpassed $200 million.

Plunge has reported profitable operations in several recent months and aims for sustained profitability in 2025. While growth has been rapid, sustaining momentum requires scaling production efficiently, managing costs, and navigating competition.

Technology as Differentiator

Hardware alone does not define Plunge’s model. The company has invested in digital and enterprise technology to create an ecosystem.

• Plunge App: With over 8,000 monthly active users and a 4.8 out of 5 rating, the app extends engagement beyond hardware purchase.

• PlungeConnect: An enterprise solution for gyms, spas, and hotels. This platform allows centralized monitoring of multiple units, helping operators reduce maintenance costs and streamline compliance.

Roadmap and Forward-Looking Plans

⚠ Forward-Looking Statement Disclaimer
Forward-looking statements about Plunge’s plans are based on current expectations and assumptions that involve risks and uncertainties. Actual results may differ materially. Prospective investors should review the company’s official offering documents and consider all risks before making an investment decision.

Plunge has outlined near-term priorities:

• Streamlining production to protect profitability.

• Introducing smaller, budget-friendly products.

• Expanding B2B sales with hospitality partners such as Hilton and Marriott.

• Enhancing the Plunge App with coaching features and wearable integration.

• Exploring international distribution.

Leadership Team

• Michael Garrett, Co-CEO and Co-Founder: Invented the original Plunge. Previously founded Reboot Float & Cryo Spa. Former analyst at Strome Group.

• Ryan Duey, Co-CEO and Co-Founder: Wellness entrepreneur and 2024 Entrepreneur of the Year finalist. Founded Capitol Floats, a float studio.

• Elliott Ozer, Head of Finance: Former Senior Finance Manager at Northrop Grumman. MBA from UCLA.

Risks and Considerations

Potential investors should evaluate risks, including:

• Market Cyclicality: Consumer enthusiasm may shift over time.

• Competition: Larger incumbents could challenge market position.

• Operational Challenges: Manufacturing involves supply chain risk and capital intensity.

• Economic Sensitivity: Products rely on discretionary spending.

• International Expansion: Requires regulatory navigation and new distribution channels.

All risks are detailed in the company’s Reg CF offering documents.

🐂 Bullish Outlook

Plunge’s appeal lies in its combination of product traction, brand authority, financial stewardship, and cultural alignment. Reaching more than $200 million in lifetime revenue within four years without heavy equity financing suggests both demand and operational discipline. More than 30,000 units are already in use, serving as organic brand ambassadors. Customers’ willingness to reinvest, illustrated by early momentum on Wefunder, indicates loyalty that may reduce acquisition costs.

Plunge has secured a strong brand position, with recognition from Shark Tank and coverage in Entrepreneur and Men’s Health. Successive product launches, including the cedar sauna and inflatable Plunge Pod, expand reach across different price tiers. Strategic partnerships with Life Time and Hilton provide institutional adoption channels. Macro trends in mental health, resilience, and recovery further validate demand. Together, these factors support the view that Plunge has the ingredients to extend its early lead into a broader wellness infrastructure.

🐻 Bearish Outlook

Plunge also faces meaningful risks. Revenue growth slowed between 2023 and 2024, raising questions about whether early adopters represent the bulk of demand. Competitors, ranging from budget inflatables to established fitness brands, could erode market share. Hardware-based businesses carry supply-chain and warranty risks, which could strain margins. Liability concerns around cold exposure could create reputational or legal challenges if incidents occur.

Consumer spending on premium wellness products is discretionary and may decline in a downturn. The company also carries debt obligations that require careful management. Internally, the co-CEO structure must scale under board oversight, which may present challenges as complexity increases. Finally, investors in the Reg CF campaign participate through a simple agreement for future equity (SAFE), which does not provide immediate ownership and involves long timelines before potential liquidity. These factors underscore the uncertainty inherent in startup investing.

Closing Thoughts

Plunge has built more than cold plunge tubs and saunas. It has built cultural recognition around resilience and recovery. Its story, from a garage prototype to over $200 million in revenue, illustrates how wellness brands can scale quickly while balancing profitability and expansion.

📎 Learn More: Visit Plunge’s Wefunder campaign page to review official offering materials, risk factors, and disclosures.

Investing in startups is speculative, involves a high degree of risk, and investors should be able to bear the loss of their entire investment. All investments must be made through the registered funding portal.

⚖ Required Footer Disclaimer

This newsletter is for informational purposes only and does not constitute investment advice or a solicitation to invest. Invst Guru is not affiliated with Plunge, Wefunder, or any broker-dealer. Any investment in private or early-stage companies involves risk, including the potential loss of your entire investment. All investments in Plunge must be made through its official Regulation Crowdfunding (Reg CF) campaign page on Wefunder. No investment terms are included in this newsletter. For full offering details, risk factors, and disclosures, please review the company’s official Form C filing and offering page.

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