LOS ANGELES, Aug. 29, 2016 /PRNewswire/ -- GOAT, the leading sneaker marketplace on mobile, announced today it has secured $5M in funding. The round was led by Matrix Partners with participation from GOAT's existing investors, including Upfront Ventures and Webb Investment Network. Also announced today, Josh Hannah, General Partner at Matrix Partners, will be joining GOAT's board of directors. To date, the company has raised a total of $12.6M, with other investors, including Andreessen Horowitz, First Round Capital, NEA, SV Angel and Y Combinator.
GOAT will utilize the new capital to fuel the company's growth both domestically and internationally to tap into the growing sneaker resale industry, which is estimated to be worth well over $1B. The company plans to expand the team, including strategic hires in engineering, product and marketing.
Since launching its iOS and Android apps in July 2015, over half a million members have joined the service. The company is averaging 40% month-over-month revenue growth with average order values in excess of $300. "The sneaker community is very passionate, but has been left using outdated platforms for reselling," says Eddy Lu, co-founder and CEO of GOAT. "We've tapped into the market, offering a technologically advanced service they could use on the go."
In addition to its mobile technology, what differentiates GOAT from its peers is its business model. The company vets all sellers and requires them to ship their sneakers to GOAT's warehouse once they sell, so they can be verified authentic and as described by trained specialists. If the sneakers are found to be replicas or not as described, GOAT offers a full refund to the buyer.
"With the number of replicas flooding the sneaker market, our authentication service is becoming increasingly necessary," says Lu, who estimates more than 10% of premium sneakers that are being resold are replicas.
"Traditionally, consumers purchasing rare or vintage sneakers online had trouble finding what they were looking for, and then couldn't be certain of authenticity," says Josh Hannah, General Partner at Matrix. "With GOAT's simple mobile app and commitment to verifying authenticity for every order, they provide a convenient and secure marketplace for sellers and consumers. We're thrilled to invest in GOAT and the future of the sneaker resale industry."
Founded in 2015 and based in Los Angeles, California, GOAT is the safest way to buy and sell sneakers through your mobile device. Whether you're looking to buy rare sneakers, discover new ones, or make money by listing sneakers you already own, GOAT is your destination. And with an authentication service, buyer protection guarantee and great customer service, it's the safest option in the industry.
ABOUT MATRIX PARTNERS
Matrix Partners works with visionary founders of early-stage startups to amplify their potential. Our general partners blend deep experience with personal commitment to support founders from start to success. Recent Matrix investments include Oculus VR, Zendesk, Hubspot, Acacia Communications, Polyvore, Lever, Poynt and Namely. Founded in 1977, Matrix Partners has East and West Coast offices (San Francisco and Cambridge) as well as offices in Shanghai, Beijing, Mumbai, and Bangalore. Reach us at www.matrixpartners.com and @MatrixPartners.