Trainer resale app Goat raises 5 million dollars

Los Angeles-based start-up Goat, the leading trainer resale business, has raised 5 million dollars in funding, as it looks to expand its engineering, product, and marketing teams to take its app global.

The mobile-only marketplace sells used and collectible trainers from Adidas’ Yeezys to Nike’s Jordans and Flyknits, in men’s and women’s sizes. Since launching its iOS and Android apps in July 2015, over half a million members have joined the service and the company is averaging 40 percent month-over-month revenue growth with average order values in excess of 300 dollars.

The 5 million dollar funding round was led by Matrix Partners with participation from Goat’s existing investors, including Upfront Ventures and Webb Investment Network. To date, the company has raised a total of 12.6 million dollars, with other investors, including Andreessen Horowitz, First Round Capital, NEA, SV Angel and Y Combinator.

Coinciding with the funding announcement, Goat also confirmed that Josh Hannah, general partner at Matrix Partners would be joining Goat's board of directors.

In a press statement, Goat stated that they will utilise the new capital to fuel the company's growth both domestically and internationally to tap into the growing trainer resale industry, which is estimated to be worth well over 1 billion dollars. Initial plans include expanding the team, including strategic hires in engineering, product, and marketing.

"The sneaker community is very passionate, but has been left using outdated platforms for reselling," said Eddy Lu, co-founder and chief executive of Goat. "We've tapped into the market, offering a technologically advanced service they could use on the go.”

Sneaker app Goat looking to expand globally after raising 5 million dollars

Unlike other marketplaces like eBay, Goat operates as mobile-only, and vets all sellers and requires them to ship their sneakers directly to their warehouses once they sell, so they can be verified authentic and as described by trained specialists. If the sneakers are found to be replicas or not as described, Goat offers a full refund to the buyer.

“With the number of replicas flooding the sneaker market, our authentication service is becoming increasingly necessary," added Lu, who estimates more than 10% of premium sneakers that are being resold are replicas.

Matrix Partners Josh Hannah added: “Traditionally, consumers purchasing rare or vintage sneakers online had trouble finding what they were looking for, and then couldn’t be certain of authenticity.

“With Goat’s simple mobile app and commitment to verifying authenticity for every order, they provide a convenient and secure marketplace for sellers and consumers. We’re thrilled to invest in Goat and the future of the sneaker resale industry.”

Images: Goat website