How On Running Was Founded: From Garden Hose to IPO

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May 31, 2023
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20VC with Harry Stebbings
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How On Running Was Founded: From Garden Hose to IPO

TL;DR

On Running began on a rainy 2009 morning when co-founder Olivier glued hollow rubber pieces cut from a garden hose under a running shoe, creating a sole that cushions on landing yet compresses flat for an explosive push-off. The three Swiss friends quit their jobs, learned shoemaking in Asia, and built a brand that reached a NASDAQ IPO.

Transcript

how did it come to be that Roger and on came together well Rocha said hey I would love to get involved that hey that's fantastic but you know you know something like classic sports sports star endorsement us giving money to you that's not that's not really your own style because we've always been growing out of the c... Read More

Key Insights

  • On Running's core innovation came from hollow rubber elements Olivier cut from a garden hose and glued under a shoe, giving cushioning on impact that compresses into a flat surface for an explosive, energetic push-off.
  • The founding 'aha moment' happened on a rainy 2009 morning during a test run, when co-founders recognized a pattern similar to how full-suspension mountain bikes and carving skis had transformed their sports.
  • On was founded by three friends: Olivier, a duathlon world champion and triathlete who conceived the idea, plus Casper and David Allemann, none of whom came from the shoe or sports industry.
  • David learned to make shoes by flying to Asia and convincing a skeptical factory that tooling for hollow-element soles was possible, bringing prototypes and having workers step into the shoes to feel the difference.
  • On's first prototypes won the ISPO Gold Award, Europe's innovation award for new sports products, just weeks after the company was founded in January 2010.
  • Marathon world champion Tecla Loroupe validated the shoe early, telling the founders in broken English that she ran from Germany to the pope on a peace run and it was the best shoe ever.
  • On's design philosophy follows form-follows-function in the Swiss minimal tradition, stripping away typical running-shoe decoration and 'bling' while keeping the visible outsole technology as a visual draw.
  • Roger Federer joined On not through a classic paid endorsement but by becoming a co-investor and co-entrepreneur, giving the company money rather than receiving it, which fit On's community-grown ethos.

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Questions & Answers

Q: How did On Running get started?

On Running started on a rainy morning in 2009 when co-founder Olivier, a duathlon world champion and triathlete, invited Casper and David for a test run in a running shoe he had modified. He had shaved off a pair of running shoes and glued rubber pieces cut from his garden hose underneath, creating hollow elements. When David and Casper took the shoe for a spin, it produced an amazing sensation that felt both soft and explosively responsive, sparking the idea that would become the company.

Q: What makes On Running's shoe technology different?

The core innovation is the hollow rubber elements underneath the sole, later called Cloud Tech. When you land, these hollow elements give a lot of cushioning, but then they fully compress to give a flat surface so you can push off with all your energy. This design solved Olivier's frustration as a triathlete: training runs used very cushioned shoes, but racing flats were hard and left you feeling it the next day. The goal was engineering the best of both worlds, soft yet responsive and explosive.

Q: Who are the founders of On Running?

On Running was founded by three friends. Olivier, a duathlon world champion and triathlete, conceived the original idea while thinking during his training runs. Casper focused on approaching specialty running retailers, the hardcore mom-and-pop shops where serious runners get advice. David Allemann, the interviewee and now Co-Founder and Co-Chairman, handled manufacturing by traveling to Asia to learn shoemaking. None of them came from the sports or shoe industry, which they saw as a strength for breaking conventions. The company was founded at the beginning of 2010.

Q: How did the founders make the first On shoes?

The process was messy at first because they were in an exploration stage and unsure. David flew to Asia after a friend connected him to someone who knew someone at a shoe factory, since none of the founders came from the sports industry. The factory was skeptical, saying hundreds of people pitch new shoe ideas, and the hollow elements were especially complicated because putting holes into a sole requires tooling with sticks that are hard to remove. David convinced them by bringing Olivier's prototypes and having factory workers step into the shoes to feel the difference themselves.

Q: How did On Running win its first recognition and customers?

On won early recognition when its first factory prototypes were sent to the largest sports expo in Europe, ISPO, which two weeks later awarded them the ISPO Gold Award for sports innovation. A week later marathon world champion Tecla Loroupe called to say she ran from Germany to the pope on a peace run in the shoes and it was the best shoe ever. For retail customers, Casper and Olivier called local running shops claiming to be in town, asked the retailer's size, and offered a lunchtime run to demonstrate the shoe one by one.

Q: Why did the founders decide to commit fully to On Running?

All three founders had well-paid, acclaimed positions at companies, so committing was a real risk. They made the decision on a long hike in the Swiss mountains, where the view improved as they climbed and they had a realization. Coming out of Switzerland, one of the richest and safest places on the planet, safety can be an inhibitor that discourages risk-taking. They challenged themselves: if they could not take a risk on something crazy, who could. After that hike, David quit his job, Casper quit his, and Olivier stopped his athlete coaching.

Q: How did Roger Federer come to work with On?

Roger Federer said he would love to get involved with On. Rather than a classic sports star endorsement where the company gives money to the athlete, the founders told Roger that model was not their style because they had always grown out of the community and it was not in their playbook. Instead they proposed the reverse: rather than On giving Roger money, Roger would give On money and become a co-investor and co-entrepreneur together with them. To their surprise, Roger said yes, that is what he was going to do.

Q: What is On Running's design philosophy?

Design was part of On's DNA from the very beginning, reflecting David's background and that of Tilo, the head of design who joined even before the company started. Tilo was a product designer, not a shoe designer, which the founders saw as a good fit since none of them were in the shoe business, letting them break conventions. They kept the visible outsole technology, which draws the eye on a shoe wall, but stripped away typical running-shoe decoration, lines, and shiny bling in favor of a minimal form-follows-function approach rooted in the Swiss design tradition.

Summary & Key Takeaways

  • On Running's origin traces to a rainy 2009 morning when triathlete Olivier invited co-founders Casper and David for a test run in a shoe with hollow rubber elements cut from a garden hose glued underneath, producing a sensation that felt both soft on landing and explosively responsive on push-off.

  • None of the founders came from the sports or shoe industry, so David flew to Asia to learn shoemaking and convince a factory the complex hollow-element tooling was possible, while Casper approached specialty running retailers and Olivier tested shoes with athletes to replicate the aha moment.

  • Early momentum came fast: the prototypes won the ISPO Gold innovation award and marathon world champion Tecla Loroupe praised them, but reality set in with rushed delivery of the first 2,000 shoes and grinding one-by-one retailer outreach to win early customers.


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