INSUBCONTINENT EXCLUSIVE:
StockX started as a marketplace for reselling sneakers but has since grown to be much more, bringing its transparent and anonymous
marketplace to more verticals
Today the company is announcing a $44 million Series B that will help fuel international and domestic growth while letting the company
expand to even more product categories and perhaps opening StockX stores.The idea driving StockX is simple: Provide a marketplace with fair
pricing and ensure the merchandise is authentic
The result scales to nearly day-trading in consumer goods in the same vein as oil futures
In some cases, the seller never touches the product
Sneakers and other in-demand products are priced and sold at rates set by the market rather than the seller
If a particular sneaker is in demand, the price increases.StockX is among the fastest growing startups in Detroit and Michigan and currently
employs 300 in Detroit and 50 in Tempe, Arizona
Founded in 2016 by CEO Josh Luber, COO Greg Schwartz and Dan Gilbert, founder and chairman of Quick Loans, the company has scaled to see
more than $2 million in daily transactions and 800,000 users have sold or purchased items on StockX
Today, at an event in Detroit, Luber told the audience that the company is approaching a billion dollar run-rate.The company has never been
capital contrasted and CEO and co-founder Josh Luber told TechCrunch that the company never thought they would have to turn to institutional
That the comfort of having a billionaire like Gilbert as a co-founder; Luber said Gilbert was always happy to fund StockX.&We didn&t need
money,& Luber told TechCrunch the day before this announcement, adding
&It was really about having external people that that we thought added truly different values than we had around the table.&Right now the
company main marketplace centers around sneakers but StockX is built around a platform that works for most ecommerce
It a $5 billion market worldwide
Last year the company also launched marketplaces for streetwear, handbags and watches — all verticals with a strong demand in the
secondary market.Scaling the service requires more bodies
Since everything sold on StockX is authenticated — in person — it takes more hands to authenticate more items
With that comes more customer service employees and as the company grows, StockX will need more engineers.The company is already growing
fast but Luber seems ready to double down
In March StockX had 130 people
He confesses it could be a slightly more.&We have about 50 engineers today and I would quadruple that tomorrow if I could,& he said
&We have about 50 customer service people today
I think it would be safe to double that tomorrow just because the business is growing so fast and we obviously hope it continues to grow as
we scale.&If StockX is going to scale, it needs more employees to ensure the company core ethos does not soften
The new round of funding will go far in bringing in the people Luber is seeking including additional members of the C-suite
StockX is running without a CTO, CMO, or CFO — pretty much the entire leadership suite, Luber admits.It seems this is part of the
reasoning behind the funding
The company was not seeking funding but, as Luber tells it, as the company gained attention, investors increasing reached out requesting
Of the meetings they took, there were two firms that meshed with Luber vision of growing a marketplace.The new round of funding comes from
GV and Battery Ventures including several high-profile investors including DJ Steve Aoki; model and entrepreneur, Karlie Kloss; streetwear
designer Don C; Salesforce founder chairman and co-CEO, Marc Benioff; Bob Mylod, founder and managing partner of Annox Capital; Shana
Fisher, managing partner at Third Kind Venture Capital; and Jonathon Triest, managing partner of Ludlow Ventures — only Mylod and Triest
are based in the Detroit area.StockX says it intends to use the funding to expand internationally
Right now StockX only advertises in the US and only supports purchases in U.S
Going forward it intends to open up local versions of StockX to better support key markets with support for local currency, language and
The company could also open location operations to make shipping and receiving easier and faster.&In some of these countries, we have, a
pretty decent customer base where people are tendered on a VPN,& Luber said
&There are pictures of people that walk around China with a StockX tag hanging off their shoe.&Fifteen percent of StockX sales currently
come from international buyers.Of the four product categories StockX current sells, sneakers and streetwear make up the bulk of the sales
Before expanding to different verticals, Luber tells me there a lot of room for growth in each of the current categories but expanding means
more employees.For instance, each streetwear brand is essentially a sub-vertical, he says, adding that if the company launches a new brand
StockX has to assemble a staff around it with brand expertise to build the catalog and product authentication process.StockX is not ready to
announce what other type of products it might sell
Street art seems like one they&re exploring.Despite the growth, Luber remains committed to Detroit
He said the company will always be headquartered in Detroit and was proud to point to the fact that StockX was the second largest tenant in
Dan Gilbert marquee Detroit building, One Campus Martius
The company also operates a 30,000 square foot facility in Detroit Corktown neighborhood.StockX could come to other cities though, Luber
The company is talking about what a StockX &in-real-life& experience would look like: It could be retail, a brand experience, accepting
products to be sold or additional operation centers
The company is exploring all the obvious candidates including LA, NYC, San Francisco and Portland.
