Whatever Happened To Xero Shoes After It Flopped On Shark Tank?

It's hard to believe that after 15 seasons, ABC's hit show "Shark Tank" is still as relevant as ever for startup companies seeking both capital and publicity. Indeed, investments from the venture capitalist "sharks" have spawned such success stories like Scrub Daddy (the one "Shark Tank" deal Daymond John regrets turning down)​​, Bombas socks, and who could forget Squatty Potty? Even business ideas that don't receive funding from one of the Sharks can still benefit from the Shark Tank Effect.

Typically, entrepreneurs report a sharp spike in traffic and revenue following the airing of their "Shark Tank" episode, and some businesses even report website crashes from too many visitors. For example, the greeting card app Felt saw revenue spike by a multiple of 10 to 20 times after appearing on the show, per Entrepreneur. For Xero Shoes, which failed to secure a deal from any of the five Sharks following a 2013 appearance on the business-themed reality show, the success story was even sweeter.

Husband-and-wife team Steven Sashen and Lena Phoenix initially asked for a $400,000 investment in exchange for an 8% stake in Xero Shoes. At the time, the company's sole product was a minimalist sandal that approximated the experience of wearing no shoes at all, as was custom in ancient civilizations. According to a 2021 press release, "Co-founder and CEO, Steven Sashen, started Xero Shoes out of necessity after discovering that running barefoot solved years of running injuries, but that being actually barefoot wasn't ideal in many situations."

After Steven Sashen and Lena Phoenix made their "Shark Tank" pitch, four of the five Sharks declined to invest at all. However, Kevin O'Leary, who's made some bad deals on the show before, was willing to risk $400,000 for a whopping 50% ownership in the company. Ultimately, the couple turned down O'Leary's offer, which, to be fair, could be considered somewhat greedy. We're betting nowadays, O'Leary, also known as "Mr. Wonderful," regrets not being more flexible in his offer.

Deal or no deal, the Xero Shoes entrepreneurs leveraged the hype of appearing on "Shark Tank" to raise more than $1 million for their business via crowdfunding. In 2020, the brand became the official footwear of sporting organizations USA Artistic Swimming and USA Archery. Also in 2020, Xero Shoes partnered with private equity firm TZP Group for additional funding.

Although the exact amount received from TZP Group wasn't made public, it's presumably a significant investment. That's because one goal is to grow Xero Shoes into a globally recognized brand. To that end, a Europe-centric website was launched to lower the price and obstacles to purchase for eurozone customers.

Although still known for its classic no-frills sandals — including a DIY kit to make your own — Xero Shoes has also expanded into sneakers and even boots to capture a wider market share. In 2021, the company reported $33.6 million in net sales. More recently, Xero Shoes ranked number 2,817 on the 2024 list of Inc's 5,000 "Fastest-Growing Private Companies in America." Companies on that list are ranked according to percentage revenue growth over the last three years. In Xero's case, that three-year revenue growth is a healthy 180%.

In our article's introduction, several successful Shark-backed companies were mentioned. However, some business ideas that the Sharks rejected have also gone on to score home runs. That includes Ring smart doorbells (previously called Doorbot), which appeared on the show in 2013, not to mention the flower-delivery company Bouqs, which made its pitch in 2014 and which billionaire Mark Cuban regrets not investing in. The former was acquired by Amazon in 2018 for a reported $1 billion, while Bouqs secured $23 million more in debt and equity funding in July 2024 to fund its future growth.

Coupled with Xero Shoes and countless others, these missed opportunities just go to show that the Sharks aren't always perfect. Although, Mr. Wonderful would probably tell you otherwise.