There are many benefits to going barefoot, but doing so isn't always possible. That's why Lena Phoenix and Steven Sashen designed minimalist shoe brand Xero Shoes. The founders didn't get a Shark Tank deal, which was a missed opportunity for the Sharks. Today, Xero Shoes is worth $20 million.
Founder
Lena Phoenix and Steven Sashen are lovers and long-time business partners from Colorado. Lena graduated from Naropa University and Steven is an alumnus of Columbia University.
Steven is a former All-American gymnast and one of the fastest men in the United States age 50 and over. He has a diverse background. Previously, he was a Tai Chi instructor, stand-up comedian, and creator of Scriptware, a scriptwriting software for film and television screenwriters.
Like Sashen, Lina is also a workaholic. Her first major position was president of Preferred Capital, the mortgage company she founded in 1989. In 2000, she ran another company, Garuda Management Services, Inc.
Founded Xero Shoes
At the age of 45, Sashen began to take sprinting seriously, but he continued to suffer injuries from the beginning. A friend told him to try barefoot running, and it changed his life. However, some minor injuries were caused.
So, he got some advanced sole materials and made huaraches. Other sprinters loved it, and his coach suggested he turn it into a business. Within three months, Steven and his wife were working full-time.
Xero Shoes was founded in 2010 originally as Invisible Shoes. Steven and Lena started selling DIY sandal kits and custom sandals through their website.
Shark Tank Appearance
By 2013, Lena Phoenix and Steven Sashen are expected to earn over $1 million. They need more money to fund their development. The two appeared on “Shark Tank” Season 4, asking $400,000 for 8% equity.
Robert Herjavec was initially skeptical, but when he tried on the shoes, he changed his mind. The Sharks pulled no punches, claiming the product was just a piece of rubber with a string attached. Kevin O'Leary offered $400,000 for 50% equity, but they couldn't give up that much equity.
After Shark Tank
Although they didn't land a deal, appearing on the show gave Xero Shoes a huge revenue boost. Shortly after the show aired, they received 3,000 orders and the website kept crashing. The company sold three months' worth of product in just one week!
To raise funds, they launched a crowdfunding campaign in 2017, raising an impressive $1 million. In December 2020, Xero Shoes sold a US$12.5 million stake in TZP Group. This has helped the company create more shoe designs, which are available for purchase on Amazon and XeroShoes.com.
According to the website, their shoes and sandals have more than 57,200 five-star reviews. The company is performing better than ever. In a 2019 Beyond 8 Figures podcast, Steven shared that Xero Shoes’ net revenue in 2019 was $12 million. The company's annual net income in 2021 was $33.6 million.
By 2024, they hope to capture a larger share of an addressable market worth $150 to $200 billion. Over the past five years, they've still had inventory sales issues and haven't made enough money to invest in advertising. Despite their success, the Sharks definitely missed out on a huge winner!
Categories: Shark Tank
Source: svlsf.edu.vn