Kick.com has become one of the most popular online sneaker marketplaces, allowing buyers and sellers to trade rare and limited edition sneakers. As the platform continues to grow, some investors are considering investing in Kick.com itself. There are a few key ways investors can get exposure to this fast-growing company. First, Kick.com is still privately held, so direct investment opportunities are limited. However, some private equity firms and venture capital funds have invested in the company. Accredited or institutional investors could explore investing through these routes. Another option is to invest in public companies that have a similar business model to Kick.com, such as other online marketplaces like Ebay and Etsy. These stocks could benefit from some of the industry tailwinds propelling sneaker resale platforms. Lastly, investors can simply use the Kick.com platform as customers to buy and sell rare sneakers. By contributing to the growth of the user and sales base, investors are able to gain exposure to the potential upside of the industry and Kick.com itself.
Invest through private equity or venture capital funds
As mentioned, Kick.com is still a private company, so direct investment opportunities are limited. However, some private equity and venture capital firms have invested directly into Kick.com as an emerging growth company and industry disruptor. Typically most private equity funds require investors to be accredited or institutional to gain access. So high net worth individuals with $1 million+ in assets or entities like pensions, endowments, and family offices may be able to invest in a fund with exposure to Kick.com equity. The minimums tend to be high so this option is best suited for those with at least $250k – $500k to allocate to a single private equity fund investment. This route gives investors proprietary access to a fast growing company revolutionizing the sneaker resale market.
Invest in public marketplace stocks
For those without access to private equity funds, another option is to invest in public companies with a similar online marketplace business model. Stocks like Ebay (EBAY), Etsy (ETSY), Farfetch (FTCH) are benefiting from growth in online luxury and specialty retail. The sneaker resale boom is a segment of the growing online alternative asset marketplaces and these stocks provide some exposure to the tailwinds. Investors can analyze the financials, valuation, competitive advantages, and management quality of these online marketplace leaders and invest in ones that are positioned for strong growth. Most online brokerages like Fidelity, Vanguard, or Robinhood provide access to trade these public stocks with no minimums beyond the cost of one share.
Use the Kick.com platform as a customer
Lastly, investors can simply use Kick.com as customers to buy and sell rare and limited edition sneakers if accessible in your region. The best way to invest in a company disrupting an industry is often to deeply understand and engage with the product itself as real customers. By participating on both the buy and sell-side of trades, investors gain first-hand insights into the platform mechanics and user experience. As the user and transaction base continues growing at Kick.com, investors are able to benefit from the upside. Customers also provide vital feedback, feature requests, reviews, and community engagement that iteratively improves the platform. So investors contributing to Kick.com’s flywheel effects as loyal customers gain exposure akin to equity in the company over the long-term.
In summary, accredited investors can explore private equity funds with exposure to Kick.com equity. Public stocks like Ebay, Etsy provide some upside to online sneaker marketplaces as an investable proxy. And customers using the Kick.com platform directly aid growth and gain equity-like exposure over time. As Kick.com continues disrupting the huge sneaker resale market, savvy investors have a few options to participate.