StockX Reaches $1B Valuation, Latest VC Funding Round The Largest Ever For A Michigan Company

StockX, a Detroit-based company that operates a "stock market of things" business, finalized a Series C financing round at a valuation north of $1 billion.

What To Know

StockX was launched in 2016 and facilitates buying and selling of sneakers, watches, handbags and streetwear. The real-time pricing platform utilizes a stock market bid and ask system which offers transparent and visible information. All of the products on the platform are physically inspected at one of several StockX facilities.

On Wednesday, the company said it raised $110 million in funding from DST Global, General Atlantic, GGV Capital, along with existing investors GV and Battery Ventures. The raise is historic as it marks the largest venture capital funding round ever for a Michigan company.

StockX also announced Scott Cutler will serve as CEO and will replace co-founder Josh Luber. Cutler's prior experience includes serving as senior vice president of the Americas at eBay Inc EBAY and president at StubHub. Prior to joining the tech world, he oversaw more than $1 trillion in capital market financing at the New York Stock Exchange.

Luber will continue to serve on the executive leadership team and board of directors.

Why It's Important

NPD Group analyst Matt Powell told The New York Times the internet and companies like eBay made reselling "into a cottage industry." However, companies like StockX took it a step further and "made it into a business."

StockX surpassed $1 billion in annual gross merchandise volume within three years. The company is now looking to leverage its capital raise to expand in Europe and Asia along with diversifying its product categories and extend its reach with physical retail locations in key markets worldwide.

"StockX is revolutionizing e-commerce," Cutler said in the press release. "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; it is what sets StockX apart and why I welcome the opportunity to lead the team as we look to what's next -- extending the reach of the platform and broadening its offering to provide more users with access to an authentic, transparent, anonymous marketplace."

Related Links:

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

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

Josh Luber speaking at the Beniznga Global Fintech Awards in 2018. Photo by Mandar Parab.