👟 Free Kicks Inside (no, really)

Welcome to this week’s edition of CROWDSCALE, where we bring Shark Tank to your inbox. Today we’re doing a deep dive on Ollo Footwear, an athletic shoe brand with a cult following that’s accepting investments on Wefunder:

• 👟 Don’t Wake Nike: The dangerous growth game could wake a giant

• 🎁 GIVEAWAY! We’re giving away a pair of free kicks from Ollo

• ♾ Runway Unlimited: They’re profitable. Are they investable?

One of the most foolish things an entrepreneur can do, is compete with Nike.

Nike’s been at the top of the food chain for decades, and isn’t slowing down any time soon. An L.A. based startup named Ollo ignored my warnings and hopped into the sneaker biz a few years back.

And their strategy is kind of brilliant.

Ollo is attempting to dominate a small but growing niche - movement sports. Movement sports is the umbrella term used to refer to activities like Parkour, Ninja Warrior, and World Chase Tag.

Right now, the current shoe market offers sneakers that are either designed for lifestyle or performance. There are few options for shoes that do both.

Ollo’s sneakers pass for streetwear that parkour enthusiasts aren’t embarrassed by. And yet, they include a host of performance features, like a ‘toe abrasion protector’ and a ‘two-layered heel stabilizer’ (don’t ask me what either of these mean).

Ollo’s strategy is to absolutely dominate this small market - then use it as a stepping stone to vault into the wider shoe market. The strategy is right out of Lululemon’s playbook. In 1998, Lulu crafted its brand around yoga - they dominated the space and then launched into lifestyle clothing.

Ollo is placing its bet on movement sports, and it’s paid off so far. World Chase Tag is now broadcast on ESPN, and Parkour has been tossed around as a potential new Olympic sport.

The next few years will be pivotal for Ollo. Nike and Adidas will soon come knocking if these sports continue to grow. When this happens, the cost to sponsor teams & events will go up. Ollo needs to establish a strong enough footing to fend off large new entrants, which is what their fundraising round is meant to do.

Okay I’ll cut to the good stuff.

Ollo did not pay me to write this article, but I asked if they could provide a free pair of kicks for a subscriber giveaway and they were nice enough to oblige :)

Here’s the deal, do any or all of the below actions and you will be entered to win a pair of Ollo kicks ($100 value!)

• 1 Entry - Like this post

• 2 Entries - Comment ‘kicks’

• 4 Entries - Share this post!

The winner will be selected in the next couple of days and emailed a code to use on Ollo’s website

I talked to Chip Howes (founder and CEO of Ollo), and one moment stuck out to me from the interview.

When asking about how much runway the company had left, I wanted to know when Ollo would need more funds (sans the Wefunder raise).

“We don’t” was the answer I got back.

My lips quivered as I stammered through trying to say the ‘P-word’. “Are you guys…..profitable?

I was skeptical, since the company had only done $168k in annual revenue. This small amount can easily be eaten up by salaries alone, let along cost of goods, marketing, product development, etc.

But sure enough, their Form C filed with the SEC shows a slim profit for 2022. Ollo runs an extremely lean business, with only 3 full-time employees. Ultimately, I think I will end up investing in Ollo, mainly for the following reasons:

• 3.5x increase in sales from 2021 → 2022

• Extremely lean operation, but with lots of experience in the space

• High-margin business with repeat purchases (shoes wear out)

• Ample growth opportunities (lots of demand for a kids shoe to be sold at gyms)

As I mentioned, Ollo is raising funds on Wefunder - and investors who commit $500 receive a free pair of Ollo shoes. Feel free to check out their raise below:

Please note that this is not financial advice, nor a recommendation to invest in any of the startups mentioned. Readers should conduct their own due diligence and understand that startup investing is a risky asset class.