The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: From $4.1BN to $142M Market Cap; Why Public Markets Have Written Allbirds Off, What Allbirds Need to Do to Get Profitable, Why Growth has Slowed and The Bull Case for Allbirds Next Five Years with Joey Zwillinger, Co-Founder @ Allbirds

Nov 6, 2023

Joey Zwillinger, Co-Founder & CEO of Allbirds, discusses the challenges faced by the company, including a decrease in valuation and revenue. They also talk about competition with other shoe brands and the mistakes made in COVID. Joey reflects on his own relationship with money and the importance of profitability.

44:51

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Episode guests

Joey Zwillinger

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Quick takeaways

Allbirds has experienced a significant decrease in market cap due to declining revenues and changing consumer preferences.

Allbirds aims to strengthen consumer loyalty by offering unique, sustainable products and expanding into new product categories.

Deep dives

The Challenges Faced by Allbirds

Allbirds, a once highly valued brand, has experienced a significant decrease in market cap due to various factors, including declining revenues and the changing preferences of consumers. The company, founded by Tim Brown and Joey Zwillinger, initially gained attention for its innovative approach to footwear, focusing on comfort, sustainability, and sleek design. However, the pandemic and shifting consumer trends have posed challenges, leading to decreased sales and a need to reposition the brand. Despite the setbacks, Allbirds remains confident in its brand strength, committed to regaining market relevance, and capitalizing on future opportunities.

Leadership, Discipline, and Resilience in Challenging Times

01:38

Introduction

3min

Challenges and Reflections

9min

DTC Companies and Brand Differentiation

18min

Impact of Macro Environment on Luxury and Retail, and Consumer Loyalty in the Shoe Industry

2min

Expanding Beyond Shoes: Comfortable Luxury

6min

Expressing Gratitude, Riverside Recording Tool, Arising Ventures Success Story, and Secureframe Compliance Platform

3min

Joey Zwillinger is the Co-Founder & CEO @ Allbirds, the company behind the world's most comfortable shoe. In Nov 2021, Joey took the company public and the stock soared to an all-time high of $4BN, today the company has a market cap of $137M. Prior to Allbirds, Joey spent six years at biotechnology firm, Terravia, leading its renewable chemical business, developing and selling high-performance algae-based chemicals into various industries such as CPG, personal care, and industrials.

In Today's Episode with Joey Zwillinger We Discuss:

The Founding Moment:

How did Joey's wife's friendship lead to the co-founding of Allbirds?
What does Joey know now that he wishes he had known at the founding moment?
What does Joey believe he is running away from? What is he running towards?

2. Public Market Performance Review:

Why has Allbirds lost 97% of it's value since going public? What mistakes were made?
Why has revenue declined for the first time this year?
What strategic investments have Allbirds pulled back on or paused entirely?
When will Allbirds be profitable?

3. The Competition:

How do Allbirds compete and catch up with On and Hoka?
What strategic mistakes did Allbirds make in COVID that allowed others to take the crown?
Was the movement into running and athletics a mistake for Allbirds?

4. Joey Zwillinger: The Leader and Person:

Did Joey take secondaries out during the Allbirds journey?
How does Joey reflect on his own relationship to money?
How has Joey dealt with the last 12 months personally? How does he manage the stress effectively?

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