Cowen: StockX's Influence In Footwear Is Accelerating After $44M Funding Round

The influence of the Detroit-based sneaker marketplace StockX in footwear is accelerating, according to Cowen.

StockX recently raised $44 million in Series B funding, which increases its potential for marketplace disruption, analyst John Kernan said in a Monday note.

The funding round, led by GV and Battery Ventures alongside other high-profile investors, should help StockX grow its user base, improve the user experience and boost the marketplace's authenticity and liquidity, the analyst said. (See Kernan's track record here.)

Eminem, Karlie Kloss, Steve Aoki and Mark Wahlberg are among the company’s investors.

'The Yeezy Index'

StockX treats its sneakers like stocks, with a bid and and ask price for every shoe; a running ticker for every model; and indexes for the major brands.

The stock market has been the “most efficient form of commerce” for hundreds of years, and StockX is applying the concept to consumer goods rather than equities, Luber said at a Detroit Fintech Assocation meeting in May.

“You literally are buying the Yeezy index instead of the Dow Jones,” he said. 

Cowen: Market Share Gains Ahead

StockX has quickly become a go-to website to locate hard-to-find shoe releases.

Its success is indicative of the pricing power Nike Inc NKE, the Jordan nameplate and Adidas AG (ADR) ADDYY have within their premium and limited edition offerings, “which for some SKUs would seem irrational to many consumers, yet within ‘sneaker culture’ they are highly exchangeable, liquid and luxury goods," Kernan said.

Cowen expects the company to continue to gain "significant" share in the high-end sneaker market, as well as the innovation pipeline at Nike, Adidas, Jordan, Kith, Supreme and other brands.

Related Links:

StockX, AutoBooks CEOs Talk Tech In The Motor City At Detroit Fintech Association Gathering

StockX CEO Josh Luber: 'Maybe One Day You Can Invest In The Jordan Index Instead Of The Dow'

StockX CEO Josh Luber speaks at the Benzinga Global Fintech Awards in May. Photo by Mandar Parab.