Allbirds, the once buzzy multibillion-dollar sneaker startup, is selling up for $39 million
That’s less than 1% of its peak market cap about four years ago.
Patagonia fleeces. Kombucha on tap. The act of corporate disruption. Some things, no matter where in the wild you encounter them, just scream: “Silicon Valley.”
And for a few short years, no product evoked the Bay Area quite like the sustainable wool sneaker brand Allbirds, eventually catching up to break another part of California entirely, with every other celebrity — from brand investor Leonardo DiCaprio to pop sensation Camila Cabello — slipping on the comfortable, bland-by-design footwear to stroll around their section of the Golden State.
However, since the heady days when ringing endorsements echoed out of San Francisco and LA, Allbirds has seen its popularity plummet, and the brand announced yesterday that it would sell its intellectual property and certain assets and liabilities to American Exchange Group for just $39 million.
For context, as TechCrunch observed, the company raised almost 10x that amount when it went public at a more than $4 billion valuation just over four years ago.
Despite its New Zealand origin story stretching back as far back as 2007, Allbirds only debuted its first shoe, the “Wool Runner,” in 2016. The sneaker would go on to win praise as being “the world’s most comfortable shoe,” sell a staggering 1 million pairs in just two years, and help the startup tread its way toward a blockbuster IPO in November 2021. Though Allbirds has delayed its Q4 report on the American Exchange announcement, it posted sales just shy of $33 million in the third quarter of 2025 — almost half of the $63 million they brought in for the same period in 2021.
Died in the wool
While it’s sometimes difficult to find a reason for a fashion brand’s demise beyond the overarching fact of the industry’s fickle nature, the company’s wayward attempts to diversify into technical running shoes and other workout gear; its inherent reliance on customers’ environmental concerns being enough to drive them from bigger, better-established competitors; and the move away from its direct-to-consumer roots into the harsher world of brick and mortar (the company closed all but two of its physical stores just last month) have all weighed on the stock and its sneakers.
