This story is part of Chicago Inno’s Midwest Insights Series, which highlights news, topics and trends that impact the region’s innovation economy.
A Detroit-based sneaker resale startup is now valued at more than $1 billion after raising the largest round of venture capital funding in Michigan history.
StockX announced Wednesday that it raised a $110 million Series C round for its platform that lets people buy and sell sneakers. It also offers watches, handbags and other streetwear.
The round included backing from DST Global, General Atlantic, GGV Capital, Battery Ventures and GV (formerly Google Ventures). Now in "unicorn" territory, StockX says it plans to use the funding to fuel its international growth and add brick-and-mortar shops.
The $110 million round is officially the largest VC-backed fundraise ever in Michigan. (Rivian, Michigan-based electric truck startup, raised $700 million earlier this year in a corporate-backed equity round led by Amazon.)
“Michigan’s momentum continues to build," said Heidi Craun, the director of platform at Hyde Park Angels and the co-founder of Intermitten, a Midwest tech conference. "With unicorns like StockX earning the confidence of local, regional, and coastal investors alike, the density of talent and resources increases as well. These are strong signs of a growing, healthy startup ecosystem, and Michigan’s success is the Midwest’s success."
StockX's consumer marketplace allows customers to bid on shoes or buy them for the lowest asking price from the seller. It offers brands like Jordan, adidas and Nike, and the startup physically inspects all products for authenticity. The startup is doing more than $100 million a month in gross product sales, according to the New York Times.
Launched just three years ago, StockX now has more than 800 employees.
The company, founded by Josh Luber, Greg Schwartz and Cleveland Cavaliers Owner Dan Gilbert, also announced that it has hired Scott Cutler to be its CEO. Cutler comes to StockX from eBay, where he served as senior VP.
"StockX is revolutionizing e-commerce," Cutler said in a statement. "That is why the company is one of the fastest growing technology companies in the world with a rapidly expanding global user base comprised of passionate enthusiasts."
StockX is also backed by celebrities like Steve Aoki, Karlie Kloss, Eminem and Mark Wahlberg.
