Accel has led a $25 million round for GOAT, the operator of a secondary marketplace for collectible sneakers, with prices ranging from $100 or so to upward of $1,000 per pair. In an industry rife with counterfeit goods, the company works to ensure authenticity for buyers while also easing the process for sellers. Proceeds from the investment will be used to increase hiring and expand distribution capabilities, according to TechCrunch.
While the $25 million deal may not drop jaws, for GOAT it marks the successful result of a product pivot. The company's founders, Eddy Lu and Daishin Sugano, set out in 2012 to launch a social app for eating with friends called GrubWithUs. After graduating from Y Combinator and working on that idea for three years without much traction, the pair decided to scrap the app and go in another direction. Now, they've clearly found success in a new, niche market.