A stock exchange for sneakers is now worth $1 billion and it just hired a former eBay exec as CEO
- StockX has officially reached $1 billion after its most recent Series C funding round
- Scott Cutler, of eBay, will be taking over as CEO
- The company brands itself as a"stock market for things"
StockX has officially reached a $1 billion valuation after its most recent funding round, co-founder Josh Luber told CNBC on Wednesday.
The company, which brands itself as the"stock market of things," also announced that Scott Cutler would be taking over as CEO. Cutler was formerly a Senior Vice President for the Americas at eBay. Prior to that, he was president of StubHub, and was an executive vice president at the New York Stock Exchange.
"Scott and I have known each other since we started the company," Luber explained to CNBC's"Squawk Box.""StubHub was a shining example for us of how a marketplace works with the primary market."
Cutler explained that his previous roles had prepared him well for such a position."It was the combination of the bid and ask model of the New York Stock Exchange, the marketplace model like StubHub, and the blending of primary and secondary and patterned after marketplaces which I had been a part of."
Luber will continue to hold a position on the executive team and as a member of the board. When it comes to needing new leadership, Luber was clear that the company was still at an early growth stage and looking for leadership to take them further.
"We need 9 CEOs! We need 9 CMOs. There is so much to do, there is so much work…it's day zero around here."
StockX is positioned at the center of a continually growing sneaker resale market."Globally, it's maybe $6 or 7 billion," says Luber. "But the global retail sneaker market is $100 billion. And that's actually the market we're a part of."
"It's everyone that's bought a pair of shoes, and everyone that is going to buy a pair of sneakers."
The recent series C round raised $110 million, and included investors DST Global, General Atlantic, and GGV Capital. DST also financed Wish and JD.com; GGV Capital helped back Poshmark and Alibaba. The previous round closed in September and included investors GV (formerly Google Ventures), Karlie Kloss, and Salesforce CEO Marc Benioff.
The valuation now officially brings the online sneaker-resale company to unicorn status, having reached $1 billion in less than three years. StockX will use this funding to continue their expansion in Europe and Asia, having recently launched a London depot and announcing plans to open one four times the size in the Netherlands.
Luber sees a clear path for global growth."It's not about justifying the valuation — the valuation is just a function of this small piece of one vertical in one country we have today."
StockX, founded in Detroit in 2016 by Luber and Quicken Loans CEO Dan Gilbert, is an online marketplace for high-end product resale. They now sell more than $1 billion of products per year on the site, and are moving into opening brick and mortar stores in New York. Sneakers currently account for about 75% of sales on the StockX site.
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