Footballer’s shoe firm gets $24m to kick on
Kiwi merino footwear brand Allbirds has secured a further $24 million of funding for research and market development.
The US$17.5m ($24m) of funding takes the San Francisco-based company’s total investment since it was launched in 2015 to US$27.5m.
Allbirds was co-founded by former Wellington Phoenix captain and All Whites vice-captain Tim Brown, along with biotech engineer Joey Zwillinger.
The pair spent more than two years perfecting a textile suitable for shoes using superfine merino wool with a vegetable-oil based polyurethane insole before raising an initial US$2.7m to launch in New Zealand and the US.
Since then, Allbirds has grown to have more than 50 employees.
The funds would be used for further R&D into new and sustainable materials, as well as for international expansion and to grow its retail foot- print. “We see an opportunity to be leaders in sustainable manufacturing in an industry that has not paid enough attention to its impact on the environment; this fresh capital will allow us to make further strides in material innovation and our brickand-mortar retail presence,” Zwillinger said.
Brown said the company felt fortunate to have the opportunity to challenge industry norms.
The Series B investment was led by Tiger Global Management, with further investment from existing investors such as Lerer Hippeau and Maveron — a fund developed by Howard Schultz, the founder and chief executive of Starbucks.
Tiger Global partner Lee Fixel said Allbirds had managed to create a unique product while also growing a large direct-to-consumer business.
“We have big plans for 2018 and are looking forward to investing these funds to extend the early traction we have created with the Wool Runners and Loungers,” Zwillinger said.
The shoes, which cost about $95 on the Allbirds website, are touted as an eco-friendly and comfortable wool shoe, and have been selling well.