Allbirds has successfully raised $77.5 million over four funding rounds, achieving a valuation of $1.4 billion. The company has garnered significant investment from leading venture capitalists in consumer products and the founding CEOs of some of the greatest e-commerce businesses in recent history.
Keep reading to explore the intricacies of Allbirds' fundraising journey and the investors backing this innovative company.
What Is Allbirds?
Allbirds, founded by Joseph Zwillinger and Tim Brown, is a San Francisco-based company that designs and manufactures sustainable footwear and apparel. The company emphasizes comfort, good design, and the use of premium natural materials.
Since its inception, Allbirds has grown to employ between 11 and 50 people. The company is publicly traded and has received significant investment from top venture capitalists.
Allbirds' product range includes various types of shoes such as runners, active shoes, and loungers, as well as apparel items like socks, tees, and sweatshirts. Their mission is to create products that are not only comfortable but also environmentally friendly.
How Much Funding Has Allbirds Raised?
- Seed Round
- Amount Raised: $2,700,000
- Date: March 2016
- Lead Investors: Lerer Hippeau
- Motivation Behind the Round: To kickstart the company and develop its initial product line.
- Series A
- Amount Raised: $7,250,000
- Date: September 2016
- Lead Investors: Maveron, Lerer Hippeau
- Motivation Behind the Round: To unveil new shoe colors and expand the product line.
- Series B
- Amount Raised: $17,500,000
- Date: September 2017
- Lead Investors: Maveron, Lerer Hippeau
- Motivation Behind the Round: To support expansion and introduce new product lines.
- Series C
- Amount Raised: $50,000,000
- Date: October 2018
- Lead Investors: T. Rowe, Fidelity, Tiger Global
- Valuation at Round: $1.4 billion
- Motivation Behind the Round: To support growth and achieve a higher valuation.
Allbirds has raised a total of $77.5 million and is currently valued at $1.4 billion.
Key Investors
- T. Rowe
- Details: T. Rowe is a global investment management firm offering mutual funds, subadvisory services, and separate account management for individuals, institutions, retirement plans, and financial intermediaries.
- Investment Focus Areas: Mutual funds, retirement plans, investment management
- Notable Investments: Various mutual funds and retirement plans
- Fidelity
- Details: Fidelity is a multinational financial services corporation known for its brokerage services, mutual funds, and investment management.
- Investment Focus Areas: Brokerage services, mutual funds, investment management
- Notable Investments: Technology, healthcare, financial services
- Tiger Global
- Details: Tiger Global is an investment firm that focuses on public and private companies in the global Internet, software, consumer, and financial technology industries.
- Investment Focus Areas: Internet, software, consumer, financial technology
- Notable Investments: Facebook, LinkedIn, Spotify
- Maveron
- Details: Maveron is a venture capital firm that led the $7.25 million funding round for Allbirds. Dan Levitan, managing partner at Maveron, was particularly impressed by Allbirds after recommendations from leaders at other e-commerce brands like Warby Parker and Harry’s.
- Investment Focus Areas: Consumer brands, e-commerce
- Notable Investments: Warby Parker, Harry’s
- Lerer Hippeau
- Details: Lerer Hippeau is a venture capital firm that participated in the funding rounds for Allbirds. They invest in early-stage companies across various sectors including media, e-commerce, and technology.
- Investment Focus Areas: Media, e-commerce, technology
- Notable Investments: BuzzFeed, Casper, Glossier
What's Next for Allbirds?
Allbirds stands at the cusp of significant growth opportunities. With a valuation of $1.4 billion, the company is poised to expand into new markets and demographics, leveraging its strong brand recognition and eco-friendly reputation. The potential for product line diversification, including new footwear styles and travel-related items, offers substantial room for growth.
Future fundraising opportunities appear promising, with the possibility of additional venture capital rounds or even an initial public offering (IPO). However, challenges such as competition from established brands and maintaining product quality as the company scales could pose hurdles. Navigating these challenges will be crucial for Allbirds as it continues its journey.
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