06 Nov 2023

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

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

This podcast episode discusses the founding story, challenges, mistakes, identity, product marketing strategies, wholesale distribution, leadership growth, declining sales, perception, dealing with stress, plans for expansion, and personal inspiration behind Allbirds, a sustainable shoe brand. Joey Zwillinger, the co-founder and CEO of Allbirds, shares insights into their journey, emphasizing the importance of consumer insights, strategic decision-making, and the significance of people in shaping the company's trajectory. The episode also explores the company's identity as a product-first company with a strong technological infrastructure. Despite the challenges faced, the CEO remains optimistic and focused on delivering exceptional financial results to gain market support. The chapter concludes with discussions on the importance of self-awareness, adapting business strategies, profitability, and the potential for sustainable and value-aligned brands to become the biggest companies of the next generation. Takeaways • The founding of Allbirds was a result of Tim Brown's desire to solve problems in the footwear industry, partnered with Joey Zwillinger's material science background and entrepreneurship experience. • Consumer insights and a no-compromise offering are important for success in the market. • External factors and internal decisions contributed to the recent decline in Allbirds' valuation. • Strategic decision-making, core branding, and entrepreneurship-industry expertise balance are crucial for growth and recovery. • Selecting the right people at the right time is crucial for a small company's success. • Allbirds identifies as a product company with a strong emphasis on style, fashion, and technological infrastructure. • The company faces challenges in product marketing, particularly in positioning and reaching the athletic sneaker market. • Wholesale distribution has the potential to increase brand exposure and capture more market opportunities. • Self-awareness, discipline, authenticity, and resilience are important traits for leadership during tough times. • The company is focused on cleaning up inventory, improving products, and adapting business strategies. • Exceeding expectations, delivering financial results, and valuing cash flow and EBITDA are important for market recognition. • Creating a supportive environment, structuring the business around beliefs, and building deep connections with consumers are key strategies for success. • Allbirds plans to expand its product offerings while maintaining focus and staying true to its mission and values. • The importance of sustainable and value-aligned brands in becoming the biggest companies of the next generation is emphasized.

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