There are many benefits to going barefoot, but doing so isn’t always possible. That’s why Lena Phoenix and Steven Sashen designed minimalist footwear brand Xero Shoes. The founders didn’t make the deal with Shark Tank, which was a missed opportunity for the Sharks. As of 2024, Xero Shoes has a market cap of $20 million.
Founder
Lena Phoenix and Steven Sashen are a couple from Colorado and long-time business partners. Lena is a graduate of 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 U.S. over 50. He has a diverse background, including previous work as a Tai Chi instructor, stand-up comedian, and founder of Scriptware, a scriptwriting software for film and television writers.
Like Sashin, Lena is a workaholic. Her first big job was as president of Preferred Capital, a mortgage company she founded in 1989. In 2000, she started another company, Garuda Management Services, Inc.
Xero Shoes founded
Sashin started sprinting seriously at age 45, but was often injured at first. A friend suggested he try barefoot running, which changed his life. However, it still led to some minor injuries.
So he found some advanced sole materials and made sandals. Other sprinters loved them, and his coach suggested he turn it into a business. Within three months, Steven and his wife were working full-time on the business.
Xero Shoes was originally called Invisible Shoes and was founded in 2010. Steven and Lena began selling DIY sandal kits and custom sandals through their website.
Shark Tank Appearance
By 2013, Lena Phoenix and Steven Sashen were on track to exceed $1 million in revenue. They needed more money to grow their company. They appeared on Shark Tank Season 4 and asked for $400,000 for an 8% stake.
Robert Herjavec was initially skeptical, but when he tried the shoe on, he changed his mind. The Sharks pulled no punches, saying the product was just a piece of rubber with a string on it. Kevin O’Leary offered them $400,000 for 50% of the shares, but they couldn’t give up that much equity.
After Shark Tank
Although they didn’t close a sale, appearing on the show gave Xero Shoes a huge boost in revenue. Soon after the episode aired, they received 3,000 orders and their website kept crashing. The company sold three months’ worth of product in just one week!
Desperate to raise funds, they launched a crowdfunding campaign in 2017, raising an impressive $1 million. In December 2020, Xero Shoes sold $12.5 million worth of equity to TZP Group. This helped the company create more shoe designs, which are available on Amazon and XeroShoes.com.
According to the site, their shoes and sandals have over 57,200 5-star reviews. The company is doing better than ever. In a 2019 podcast with Beyond 8 Figures, Steven shared that Xero Shoes achieved a net revenue of $12 million in 2019. The company’s annual net revenue for 2021 is $33.6 million.
By 2024, they hope to capture a larger share of a total addressable market worth $150-200 billion. They still have issues with selling out of inventory and haven’t made enough money to invest in advertising over the past five years. Despite their success, the Sharks are definitely missing out on a big winner!
Categories: Shark Tank
Source: dut.edu.vn
