In this case, money, it really is the shoes.
GOAT, the proprietor of online and physical retail locations for reselling the collectible kicks and kits that are the currency of street cred and cultural cool among the youths, is now worth a whopping $1.75 billion thanks to $100 million in new financing.
It’s a big number, and a big day, for the Los Angeles-based startup. But the no-longer nascent sneaker and streetwear market is a big market, with the potential to reach $30 billion in sales globally by 2030, according to a recent report by the research firm, Cowen (cited by The Wall Street Journal, which first reported the financing).
These days, GOAT is about more than just shoes, at least according to the company. Since it launched in 2015 it has expanded into adjacent categories and become one of the biggest retailers of the current e-commerce craze.
“Our mission is to bring the world’s great products together from the past, present and future, while providing a premier end-to-end customer experience with a point of view on culture and style,” said co-founder and chief executive Eddy Lu, in a statement.
Setting aside Lu’s apparent access to a Delorean and ability to go back… to the future, the company has managed to rack up some major milestones on its way to becoming a commercial touchstone for a new generation of shoppers.
The company has managed to raise $200 million from investors including Accel, Upfront Ventures, and the shoe retail giant, Foot Locker and counts retailers like Alexander McQueen, Nike, and others among the brands that sell their wares directly on the platform.
It’s also not alone in getting a billion dollar valuation for giving people a way to resell luxury and lifestyle goods. StockX, the company’s major competitor, also managed to score a $1 billion valuation on a $110 million round late last year.
According to a statement, the company will use the new round of financing to double down on its research and development and expand internationally.
“We witnessed the impressive success that catapulted GOAT to become a top player in the sneaker space and were drawn to their disciplined operational approach and differentiated value proposition,” said Dan Sundheim, the founder of D1 Capital Partners (a statement that definitely doesn’t translate into we weren’t allowed into the StockX round). “As GOAT continues to grow its core business and expand into new categories, it is rapidly emerging as one of the best positioned next generation global e-commerce platforms.”
Money, it’s gotta be the shoes.