Pro's Closet raised some cash

[T-Crush]

Online used bike retailer The Pro’s Closet has completed a $12 million funding round and is moving its headquarters from Boulder to Louisville.

The company said Wednesday that the funding, which was led by venture capital firms The Foundry Group and Edison Partners, brings the total investments in The Pro’s Closet to more than $27 million.

The Pro’s Closet will also move its headquarters from 2845 29th St., Suite C, in Boulder to the 137,000-square-foot space at 1900 Taylor Ave. in Louisville, which was formerly the North American headquarters for the outdoor brand Fenix, whose subsidiaries include Fjallraven. The Pro’s Closet will occupy 40,000 square feet and 24 shipping bays at 1900 Taylor, according to a press release.

The Pro’s Closet was founded in 2006 by Nick Martin, who is still the company’s CEO. According to the company’s website, Martin began by selling unwanted bike gear on eBay. Now, it sells through its own website and markets itself as the world’s largest retailer of used bikes. Its bikes are certified pre-owned, and its business model includes a guaranteed 18-month buyback for all bikes.

https://www.dailycamera.com/2020/09/...to-louisville/

[old_fat_and_slow]

Wow, who wuddah thunk selling used bikes and parts on Ebay could grow to a $27 million dollar business? Not me.

[buddybikes]

Small shop I used to work in (perhaps 8 people working at a time) grossed 2.8 just selling specialized and treks.

[C40_guy]

Originally Posted by old_fat_and_slow

Wow, who wuddah thunk selling used bikes and parts on Ebay could grow to a $27 million dollar business? Not me.

$27M is how much they've raised overall, not how much they sell annually.

One website estimated their annual sales at $9.3M. (TPC does not release revenue information).

[peanutgallery]

You always have to have "growth" in situations like this. Investors et al

High times now, be interesting to revisit down the road

[dbnm]

I wonder how much the rent was in Boulder.

Housing Costs in Boulder

[zmudshark]

Short drive from the airport, where the UPS hub is located.

Never mind, Louisville CO, not KY

[robt57]

Wonder how far they unzipped their fly...

[T-Crush]

$27M isn't the revenue, but it isn't the total valuation either. If the founders still own 25%, and that's just a guess, that would put the valuation somewhere in the $36M range.

These are good times in the used bike space, and smart move to secure funding during it. No one says you have to wait for "normal" to reappear to go to market.

[FlashUNC]

Agreed, was wondering how large the stake is and, by extension, how the outside investors are valuing the business.

Definitely the time to bring in cash though, given the on-going bike boom.

[Hawker]

I guess the fact that they were in Boulder, a city often thought of as a hub for serious cycling didn't really come into play. Yep, probably rent, taxes and maybe shipping costs from a more central location?

But what about good coffee?

[AngryScientist]

Originally Posted by FlashUNC

Definitely the time to bring in cash though, given the on-going bike boom.

yes, but the flip side is it's also probably a good time to exercise caution with expansion. i'm sure it's cheaper in st loius than boulder, but they are significantly expanding their square footage, and presumably staff. the level of bike buying frenzy is not going to keep up forever, especially if/when a major recession hits, so hopefully for them they can continue to support the expanded operation far into the unknown future.

[KJMUNC]

glad I got paid for my Pinarello last week before they start changing policies

Best of luck to them.....

[hellvetica]

Good for them. They found a cool business model, and it worked.

[lookout2015]

They’re not really leaving Boulder. Their new space is in Louisville CO — it’s the next suburn/sprawl east of Boulder