CNBC Shark Tank Alum Xero Shoes are on a roll. In January 2013, Xero Shoes appeared on the ABC show, Shark Tank and turned down a $400,000 offer from Kevin “Mr. Wonderful” O’Leary, who wanted 1/2 of the company… but they got their DIY sandalled feet in the door.
“The show, though, was hugely impactful. First, the effort of preparing to appear on the show focused our commitment to the future of Xero Shoes, and it solidified our working relationship. Second, even though we were only selling our $20 DIY sandal-making kit, being in front of seven million people generated almost three month’s worth of revenue for us in the first week,” commented Xero Shoes CFO and Co-founder Lena Phoenix and CEO Stephen Sashen via its campaign. “Third, the Sharks had some, well, issues with us. Daymond said our product was just “rubber and string.” (Of course, Daymond made his money selling clothing that was just cotton and ink 😉 ). We took the Shark’s criticism and suggestions to heart and these helped guide our future product development…The show keeps on giving. With reruns airing on CNBC, we continue to benefit from being ‘in the Tank.'”
The woman-owned, Colorado-based company reports that it has generated over $7 million in sales since incorporating, with revenue growth of 85.3% from 2014-2015 and 91.9% from 2015-2016. And by saying no to Mr. Wonderful, the company may have found Ms. Right: Reg A+ Crowdfunding.
At this writing, the shoe company has raised over $444,450 toward its $1M first level goal, with a maximum raise of $3M. 500,000 Class A Voting Stock and 250,000 Class B Non-Voting Stock is available. The price is set at $4 per share. The minimum US investment is set at $100 while the minimum international investment is set at $500. The company gives further investment details on its Q&A page.
While Xero Shoes started as a “barefoot running” product in 2009, with the help of designer Dennis Driscoll Xero’s products have evolved and are evolving further to include other footwear that supports natural movement with expansion of its online reach and wholesale channels. In addition, crowdfunds will be used for product development, increase marketing activity and team expansion.
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