Xero Shoes
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 1, 2013
Asking For:
$400,000 for 8%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Xero Shoes are minimalist footwear designed to provide the benefits of barefoot walking and running while offering protection and comfort.
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Background Story
Steven Sashen, a competitive sprinter, discovered the benefits of barefoot running after being plagued by injuries upon returning to the sport. Encouraged by a friend, he began running barefoot and found relief. This experience inspired him and his wife, Lena Phoenix, to create Xero Shoes. Their aim was to revolutionize the footwear industry by offering minimalist shoes that mimic the biomechanics of barefoot movement. Despite facing challenges, they dedicated themselves to the development and promotion of their product.
The Product
Xero Shoes are designed to be lightweight and comfortable, providing the sensation of barefoot walking or running while offering protection. They come in various styles catering to different preferences, from high-performance to fashion-forward designs.
The shoes can be purchased either as a DIY kit, allowing customization to the wearer’s foot shape, or as custom-made options. Xero Shoes emphasize durability, breathability, and odor resistance, distinguishing them from other minimalist footwear options.
How It Went
The company’s position before Shark Tank
Xero Shoes has experienced significant growth since its inception, with over $650,000 in sales within two and a half years, primarily through their website. They have expanded into retail, with nine locations already carrying their products. The company projects sales of approximately $1.2 million for the current year, with an estimated profit of $200,000. Most sales are direct-to-consumer, with a small portion through wholesale channels.
The Negotiations:
The Sharks were intrigued by the product but expressed concerns about the valuation and competition. Despite offers from Kevin and Barbara, the founders declined, believing their company was valued higher. Kevin offered $400,000 for 50% equity, which was rejected. Other Sharks raised concerns about valuation and potential market saturation. Ultimately, Xero Shoes left the Tank without a deal but remained determined to prove their product’s worth in the market.
