Detroit-based StockX, “The Stock Market of All Things,” is expected to be valued at more than $1 billion in newest round of financing.
By Jackie Headapohl
Featured photo courtesy of StockX
According to online platform Recode, StockX, a startup co-founded by Dan Gilbert and incubated with Josh Luber and Greg Schwartz, is in talks to be valued at $1 billion or more in a new round of financing from DST Global, a venture firm run by Russian-American billionaire Yuri Milner, who is expected to lead the deal. Another expected participant is GGV Capital, Recode reports.
StockX, which markets itself as “The Stock Market of Things,” creates a virtual marketplace for consumers to buy and sell actual sneakers; often these are limited-edition, in-demand and sought-after items. The company has a process to check the legitimacy of each item to ensure the transaction is authentic, a key part of their business model, which is done through four operations centers.
The business also has created a price guide based on the data and analysis of these collectible items to offer real-time information to its customers and greater transparency to the sneaker. The company is less than four years old. Luber told the New York Times last year that StockX generated about $2 million in gross sales every day. The company has 700 employees.
Last year, Gilbert, founder and chairman of Quicken Loans and Rock Ventures, and chairman of the Cleveland Cavaliers, told the JN, “StockX is redefining eCommerce as we know it — a platform of ingenuity and serendipity, with first-of-its-kind market-leading technology built in Detroit.”
According to Recode, “StockX’s success and billion-dollar valuation are predicated on these high-end sneakers remaining fashionable or collectors’ items — and that’s no guarantee.”