Allbirds secret sauce: Early investor reflects on shoe company’s success as it goes public
Strong brand ethos; future-focused; and obsessed with customer loyalty.
These were some of the ingredients that helped turn Allbirds into a $3 billion shoemaker, according to one of the company’s earliest backers.
Allbirds debuted on the Nasdaq on Wednesday, with shares spiking 60% on the first day of trading.
Seattle-based VC firm Maveron, which led a $7.25 million Series A round in 2016, held the largest stake in Allbirds before the IPO that was worth around $400 million based on the opening price.
Maveron was co-founded by former Starbucks chairman and CEO Howard Schultz and Dan Levitan, who penned a blog post today celebrating the Allbirds IPO.
“Allbirds has always been committed to making better things in a better way,” Levitan wrote. “Since their beginning, they’ve done this through an unwavering focus on product development to prove that comfort, great design, and sustainability don’t have to be mutually exclusive. That continues today.”
Levitan noted that Allbirds committed early on to build a brand built on three pillars: comfort, simple and high quality design, and sustainability.
The company also established relevance faster than any other in Maveron’s portfolio, Levitan said. The VC firm has invested in 150 consumer startups since launching in 1998.
“The best founders are also able to gain confidence from their early success but appreciate how hard and how long one has to work to build an enduring, sustainable brand,” Levitan wrote.
And Allbirds’ focus on the customer is also key to its success. It has improved the core Wool Runner shoe more than 30 times;
I’m a walking example of just how loyal their customers can be. I’ve purchased 45 pairs in the last five years. I literally cannot remember the last time I wore a leather shoe, and I used to wear leather shoes every day.
Maveron, founded in 1998, focuses on consumer-only business, and has backed such companies as Arivale, Dolly, Groupon, eBay and Drugstore.com.
who was also an early investor in Seattle-based Zulily,
Allbirds was co-founded by Tim Brown, a former professional soccer player from New Zealand, and Joey Zwillinger, a biotech engineer. Speaking on a recent panel at NRF’s Big Show, Brown said the physical retail strategy is a big part of Allbirds’ growth plans.