Allbirds Selling for $39 Million After Raising Nearly $400 Million at IPO

Allbirds, the sustainable footwear company that raised nearly $400 million in its 2021 IPO at a valuation of approximately $4 billion, is being sold for $39 million, according to a report by TechCrunch published Monday. The sale price represents a decline of roughly 99 percent from the company's peak public market valuation, making it one of the most dramatic collapses among the wave of direct-to-consumer brands that went public during the 2020-2021 market boom. Allbirds was founded in 2016 by Tim Brown and Joey Zwillinger and built a consumer following around wool-based sneakers marketed on sustainability credentials. The company struggled after its IPO as the broader DTC sector faced headwinds from rising customer acquisition costs, increased competition from legacy footwear brands, and a consumer pullback from premium lifestyle spending. Allbirds reported sustained losses and underwent multiple rounds of layoffs and restructuring before arriving at a sale. The buyer and deal terms beyond the purchase price were not fully disclosed in initial reporting. A $39 million exit covers only a fraction of the capital the company raised from investors over its lifetime, which included venture backing from Tiger Global and other investors prior to the public offering. Allbirds' implosion is emblematic of a broader reckoning among consumer brands that went public at elevated valuations during a period of cheap capital and pandemic-era e-commerce tailwinds. Fellow DTC brands including Warby Parker, Casper, and Rent the Runway have all seen their market capitalizations decline sharply from IPO highs, though none to the same degree as Allbirds. The company's stock had been trading at fractions of a dollar on Nasdaq in the months preceding the sale announcement.