Online marketplace StockX is valued at over $1 billion after the latest round of financing of $110 million. The company’s goal is to be the “stock market of things,” where buyers and sellers come together to determine the price of collector sneakers.
The market for resale sneakers in the U.S. is projected to top $6 billion by the year 2025 from $2 billion today. Investment bank Cowen Equity Research believes sneakers are emerging as an alternative asset class. “We propose the idea that sneakers are now an emerging alternative asset class that 1) earns illiquidity premiums; 2) provides diversification – non-correlated with traditional asset classes; 3) earns favorable risk-reward characteristics,” an analyst recently wrote. They estimate the overall global sneaker market to be nearly $100 billion.