Tradeblock's three co-founders have known each other since childhood. Photo via tradeblock.us

A Houston-based company is kicking it with some fresh funding with plans to expand development of its marketplace platform.

Unique sneaker trading platform, Tradeblock, has raised $8.9 million in funding from investment partners Courtside VC, Trinity Ventures, and Concrete Rose Capital. Per the news release, the company expects additional funding of around $4.5 million to its seed round.

Tradeblock — founded in 2020 by self-proclaimed "sneakerheads" and childhood friends Mbiyimoh Ghogomu, Tony Malveaux, and Darren Smith — will use the fresh funding to expand and improve its digital marketplace for shoes.

"Tradeblock is revolutionizing the way forward for the new emergent asset class of footwear," says Tradeblock angel investor Jason Mayden, former Nike and Jordan footwear designer and president of Fear of God Athletics. "The founding team's understanding of the nuances of culture and tech gives them an unfair advantage in the industry and the team’s desire to lead with inclusion, representation, and authenticity also provides them with unique and meaningful organic engagement."

Over the past two years, Tradeblock has grown to have over a million shoes listed online. The team has also grown, and Tradeblock's workforce is over 80 percent people of color.

“Black and brown communities have always been the backbone of the sneaker industry and sneaker culture,” says Ghogomu, who also serves as CEO. “Showing those folks that they can be the owners and operators of this industry as opposed to just consumers is both a point of pride and a deeply rooted responsibility for everybody at Tradeblock.”

Authentication is a priority for the company, and the fresh funding will go toward further development of this type of technology within the platform.

"The market for fake sneakers is itself a billion-dollar market. If you're trying to acquire a shoe that's worth hundreds or even thousands of dollars, you need to be absolutely certain that what you're getting is the real thing," Ghogomu previously told InnovationMap.

Tradeblock — launched in Houston by three childhood friends — coordinates sales of sneakers for collectors across the country. Image via tradeblock.us

Houston-based 'sneakerheads' kick off new app to revolutionize the biz

STEPPING UP

Mbiyimoh Ghogomu remembers the moment he fell in love with his first pair of sneakers in the eighth grade. Growing up, he says "frugality was a virtue" in his household. "I was not rocking heat on feet for most of my childhood," he explains. On a mission for new basketball shoes, he found a brand new pair of Adidas T-Mac IIs, and his entry into sneaker culture was sealed.

Like Ghogomu, his childhood friends Tony Malveaux and Darren Smith each had their own awakening into the sartorial fascination of sneakers. The self-proclaimed sneakerheads founded Tradeblock in 2020, a new sneaker trading platform that provides collectors with a secure way to collect and trade shoes. After a successful beta, the Houston-based startup has recently launched a new mobile app available for iOS and Android users.

Malveaux, co-founder and director of authentication, started growing his sneaker collection during his job at Footlocker and currently owns nearly 40 pairs.

"My first paycheck came the same day that the Foamposites dropped in the electrolime colorway and let's just say my check wasn't too much bigger than the retail price," says Malveaux.

The former retail employee was using the ESPN Trade Machine in 2009, a website that lets you play the role of a team manager by creating different trade scenarios for players, when the idea for Tradeblock came to him. Malveaux shared his idea with best friend Smith, co-founder and COO, and the two held it in their back pocket for a decade.

"An entrepreneur to his very core, D was slanging Pokemon and Yu-Gi-Oh cards all the way back in elementary school," says Ghogomu of Smith. "After spending a few years in the dark cubicles of corporate America following his college graduation, he realized that he would never be truly happy or fulfilled unless he was building his own thing," he says.

Smith eventually escaped those dark cubicles and approached Malveaux about making Tradeblock a reality. The two started an Instagram and began a cross-country trip, visiting every sneaker event they could to research the needs of the marketplace. To cover the cost of travel, they sold off the majority of the impressive sneaker collection they'd built over the years and sometimes slept in their car to avoid extra expenses.

That year, the two also brought in their high school friend Ghogomu as a co-founder and CEO.

Tradeblock's three co-founders have known each other since childhood. Photo via tradeblock.us

Tradeblock started with the three founders playing the middleman in trades through Instagram direct messages, and it soon grew into a fully functional web platform.

Kicks as currency

Sneaker collecting is no small expense, due in part to the enormous resale market. According to GQ, the coveted 2020 Dior x Air Jordan 1 sneakers retailed at $2,000 but skyrocketed to $10,103 at resale value. Even moderately priced items like the $140 Nike SB Dunk High "Reverse Skunk," a 4/20-themed release with a limited 420 pairs available, have a resale price of $4,500.

High demand and exclusivity have created a barrier to access. Some opportunists have even purchased online bots to scour websites for sneaker releases so they can make bulk purchases and resell the rest at premium costs.

"Besides the fact that nobody had taken on trading, which was already a known behavior in the sneaker community, we saw the exorbitant prices that sneakers were starting to sell at in the resell market," says Ghogomu. "We realized that a ton of true blue sneakerheads, people who were in the game for the love of kicks more than anything, were basically getting priced out of every shoe they wanted," he explains.

By providing a platform for sneaker collectors to trade shoes in their collection, the founders "could provide another outlet for them to acquire the shoes they wanted without having to spend next month's rent check," says Ghogomu.

The app allows you to explore other user collections, follow collectors to keep track of their newly added shoes, and create your own closet featuring your collection. "I think the biggest social aspect of our app today is the fact that sneakerheads can actually curate a unique profile and persona for themselves on Tradeblock, and then they can explore other sneakerheads' collections," says Ghogomu.

When wanting to pursue a trade, Tradeblock allows you to manage your offers from an inbox, review trade status, and review your trade history. Users can also negotiate monetary payment if a trade isn't quite equal with shoes alone.

Once a trade takes place, authentication is a priority.

"The market for fake sneakers is itself a billion-dollar market. If you're trying to acquire a shoe that's worth hundreds or even thousands of dollars, you need to be absolutely certain that what you're getting is the real thing," says Ghogomu.

To ensure customers are getting authentic sneakers, Tradeblock has a "two-factor authentication" where every shoe goes through a physical and digital inspection.

More than a throwback

Sneaker collecting dates back to the late 1970s, coinciding with the surge in popularity of the National Basketball League and the hip hop movement of New York City.

The first-ever Air Jordans were created in 1984 and worn exclusively by former NBA star Michael Jordan, and released to the public in 1985. Just last year, Jordan's original pair sold for a record $560,000 in a Sotheby's auction, according to Reuters.

Music heavily influenced a profusion of sneakerheads. Run-DMC released the popular song "My Adidas" in 1986, which stayed on top of the Billboard music charts for 16 weeks. The trend carried into the aughts, with the rapper Nelly debuting his 2000 hit "Air Force Ones."

The shoe style has even succeeded in permeating internet culture, with a slew of memes and influencers arriving to meet the moment.

"Damn Daniel," a viral video from 2016, has solidified its place in the ever-evolving online vault of cultural moments. The video which shows then-high schooler Daniel Lara's shoe collection led him to become one of TIME's "30 Most Influential People on the Internet" that year.

Sneakerheads have since found a community using online communication platforms like Instagram, Discord, and Facebook.

"We also noticed that sneakerheads were spending a ton of time on social media platforms showing off their kicks, exploring other people's collections, and just generally looking to connect with people who shared their passion for shoes," explains Ghogomu. "We thought that if we could capture that social energy in a platform that also facilitated trading, we could create something truly revolutionary for the culture," he says.

The most popular sneaker reviewers on YouTube have grown communities of hundreds of thousands of followers, earning a living off their connoisseurship. "Shoe-tubers are an integral part of the sneaker culture today. In many ways, they're like the sherpas of the sneaker world," says Ghogomu.

The growing social authority of sneakerheads has also helped fuel Tradeblock's launch. The company has seen success in driving awareness by creating an online community and building relationships with influential YouTubers.

Existing online sellers from eBay to Poshmark have provided a way for users to sell and buy items, but the process is transactional. Understanding the passionate community of collectors, Ghogomu says they wanted to "build not just a product, but a company and brand that genuinely put the people first and harkened back to the days when being a sneakerhead was just as much about the community as it was about the kicks in your closet."

Growing a community

Tradeblock currently has more than 23,000 collectors in its database, a number that is steadily increasing by the day. "What has really blown me away is just how supportive people have been from [the] jump," says Ghogomu.

The app currently has thousands of shoes in its database, including rare releases like the Nike Dunk Lobster collection and the Art Basel Jordan 1.

"We've even got a few pairs of the original Jordan 1s in the Chicago colorway from 1985… but you'll have to come correct if you want to trade for those," jokes Ghogomu.

Through the roadblocks that come with building a startup, Tradeblock users have been loyal.

"I genuinely couldn't count the number of times we've heard people say things like, 'I want to see y'all win,' but we never get tired of it," he continues.

"When you're trying to build something unlike anything else that exists in the world, it's easy to let doubt creep in. Any entrepreneur who says they've never asked themselves the question, 'Is this really possible or are we insane?' is lying to you," says Ghogomu. "I think that as people of color, those internal barriers are even higher because we have so few examples to look to in terms of seeing people who look like us building massively successful businesses," he continues.

As the company grows, the co-founders hope to strengthen the bonds of the sneaker community — a common factor that has strengthened their own friendship.

"When most people think about sneaker culture, they think about the shoes. When we think about sneaker culture, we think about the people," says Ghogomu.

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Houston VC funding surged in 2024, fueled by major Q4 activity

by the numbers

The venture capital haul for Houston-area startups jumped 23 percent from 2023 to 2024, according to the latest PitchBook-NVCA Venture Monitor.

The fundraising total for startups in the region climbed from $1.49 billion in 2023 to $1.83 billion in 2024, PitchBook-NVCA Venture Monitor data shows.

Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.

Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.

Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”

PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.

“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”

Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

M&A News

The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.

Houston space company lands latest NASA deal to advance lunar logistics

To The Moon

Houston-based space exploration, infrastructure, and services company Intuitive Machines has secured about $2.5 million from NASA to study challenges related to carrying cargo on the company’s lunar lander and hauling cargo on the moon. The lander will be used for NASA’s Artemis missions to the moon and eventually to Mars.

“Intuitive Machines has been methodically working on executing lunar delivery, data transmission, and infrastructure service missions, making us uniquely positioned to provide strategies and concepts that may shape lunar logistics and mobility solutions for the Artemis generation,” Intuitive Machines CEO Steve Altemus says in a news release.

“We look forward to bringing our proven expertise together to deliver innovative solutions that establish capabilities on the [moon] and place deeper exploration within reach.”

Intuitive Machines will soon launch its lunar lander on a SpaceX Falcon 9 rocket to deliver NASA technology and science projects, along with commercial payloads, to the moon’s Mons Mouton plateau. Lift-off will happen at NASA’s Kennedy Space Center in Florida within a launch window that starts in late February. It’ll be the lander’s second trip to the moon.

In September, Intuitive Machines landed a deal with NASA that could be worth more than $4.8 billion.

Under the contract, Intuitive Machines will supply communication and navigation services for missions in the “near space” region, which extends from the earth’s surface to beyond the moon.

The five-year deal includes an option to add five years to the contract. The initial round of NASA funding runs through September 2029.