Going barefoot has many benefits, but doing so isn’t always practical. This is why Lena Phoenix and Steven Sashen designed Xero Shoes, a minimalist footwear brand. The founders didn’t get a deal on Shark Tank, which was a missed opportunity for the Sharks. Now, Xero Shoes is worth $20 million.
The Founders
Lena Phoenix and Steven Sashen are lovers and long-time business partners from Colorado. Lena graduated from Naropa University, and Steven is an alumnus of Columbia University.
Steven is a former All-American gymnast and is one of the fastest men aged 50 and above in the US. He has a diverse background. Previously he was a tai chi coach, stand-up comedian, and creator of Scriptware (a scriptwriting software for film and TV writers).
Like Sashen, Lena is a workaholic. Her first major role was President of a mortgage company she founded in 1989, Preferred Capital. In 2000, she ran another firm, Garuda Management Services, Inc.
Founding Xero Shoes
Sashen got serious about sprinting when he turned 45, but constantly got injured at the start. A friend told him to try barefoot running, and it changed his life. However, it still led to some minor injuries.
So, he got some advanced sole materials and made huaraches. Other sprinters loved it, and his coach suggested he turn it into a business. Within three months, Steven and his wife were working full-time on the venture.
Originally called Invisible Shoes, Xero Shoes was founded in 2010. Steven and Lena started selling DIY sandal kits and custom sandals through their website.
Shark Tank Appearance
By 2013, Lena Phoenix and Steven Sashen were on track to generate over a million dollars in revenue. They needed more capital to fund its growth. The duo appeared on season 4 of Shark Tank, asking for $400,000 for 8% equity.
Robert Herjavec was initially skeptical, but when he tried the footwear, he changed his mind. The Sharks showed no mercy, stating that the product was just a piece of rubber with a string. Kevin O’Leary offered them $400,000 for 50%, but they couldn’t give away that much equity.
After Shark Tank
Although they didn’t get a deal, appearing on the show gave Xero Shoes a hefty bump in revenue. Shortly after the episode aired, they received 3,000 orders and the website kept crashing. The business sold three months of product in just a week!
Desperate to raise money, they ran a crowdfunding campaign in 2017 and raised an impressive $1 million. In December 2020, Xero Shoes sold $12.5 million in equity to TZP Group. This helped the company create more shoe designs, which are available on Amazon and XeroShoes.com.
Their shoes and sandals have over 57,200 5-star reviews, according to the website. The company is doing better than ever. In a podcast with Beyond 8 Figures in 2019, Steven shared that Xero Shoes made $12 million in net revenue in 2019. The company’s 2021 annual net revenue was $33.6 million.
In 2024, they are looking to get a bigger chunk of a total addressable market worth $150 to $200 billion. Over the last five years, they still run into issues with selling out inventory and haven’t made enough money to invest into advertising. Despite their success, the Sharks surely missed out on a huge winner!
