The Twenty Minute VCDavid Allemann: How I founded On Running; Working with Roger Federer; Brand Marketing Tips | E1021
CHAPTERS
- 0:00 – 0:59
Roger Federer partnership: investor over endorsement
The conversation opens with how Roger Federer and On came together—and why the relationship was structured as co-ownership rather than a traditional paid sponsorship. David explains On’s preference for community-led growth and how that shaped the deal.
- •Roger approached On wanting to get involved
- •On rejected classic endorsement mechanics as “not On style”
- •Proposal: Federer invests and becomes a co-entrepreneur
- •Federer agreed, setting the tone for a deeper partnership
- 0:59 – 1:51
Rainy-morning prototype that sparked On (2009)
David recounts the real origin story: a rainy test run where co-founder Olivier unveiled a hacked-together prototype using garden hose segments. That first run created the “this could change running” moment that convinced the team there was something real.
- •Olivier invites David and Caspar to test an unconventional shoe
- •Prototype built by shaving a shoe and gluing cut garden hose pieces underneath
- •Initial skepticism turns into conviction after the test run
- •Early pattern recognition: comparable to suspension bikes and carving skis
- 1:51 – 3:14
Engineering the ‘soft landing, explosive takeoff’ experience
The founders articulate the core product insight: combining cushioning with the responsiveness of racing flats. David explains how hollow elements compress on landing then create a firm platform for push-off—the basis of what became CloudTec.
- •Problem: cushioned trainers vs harsh racing flats
- •Breakthrough: best-of-both-worlds cushioning + speed
- •Hollow elements compress for cushioning, then provide a flat surface for push-off
- •Distinctive feel: soft, responsive, explosive
- 3:14 – 5:18
From idea to manufacturable shoe: learning factories, tooling, and prototypes
David describes the messy exploration phase and how the team validated the concept with athletes and retailers while figuring out manufacturing in Asia. The biggest hurdle was convincing factories the complex tooling for holes in the sole was possible.
- •Early validation loop: athletes say the shoe feels “different”
- •David travels to Asia to learn shoe production from scratch
- •Factories initially say molds/tooling are impossible for hollow elements
- •Convincing method: put prototypes on people’s feet to recreate the aha moment
- 5:18 – 6:38
Early momentum: awards, elite validation, and the pressure to deliver
On quickly wins the ISPO Gold Award and receives surprise endorsement from a marathon champion—signals of product-market fit. But the operational reality hits immediately: retailers demand delivery by season deadlines, forcing the team to scramble to ship the first production run.
- •ISPO Gold Award accelerates credibility
- •Elite athlete validation arrives unexpectedly and powerfully
- •Retailers push for delivery timelines or they won’t order
- •First production batch (~2,000 pairs) becomes a race against time
- 6:38 – 10:03
Bootstrapped hustle: funding constraints and one-by-one retail selling
The founders commit fully, put their own money in early, and operate with extreme frugality. Caspar and Olivier build distribution the hard way—calling stores, showing up “in town,” and taking retailers on lunch runs to earn early placements and reorder trust.
- •Founders quit secure jobs after a Swiss mountain hike decision
- •Early travel and operations run on tight budgets
- •Retail entry is earned one shop at a time via personal outreach
- •Tactic: get retailers to test-run in their exact size to convert them
- 10:03 – 12:07
Design as DNA: minimalist Swiss aesthetics as a differentiator
Rather than mimic traditional “performance shoe bling,” On embraces stripped-down, functional Swiss design from day one. The look was initially seen as risky, but the visible outsole technology and minimal upper became signature brand assets.
- •Design baked in early through David and head of design Thilo
- •Hiring a non-shoe product designer to break category conventions
- •Visual technology draws attention on the shoe wall
- •Minimalism initially questioned, later becomes distinctive advantage
- 12:07 – 13:45
Naivety and the eclectic founding team: why it helped
Harry probes the value of being naïve in a complex category like footwear. David argues their lack of industry baggage, combined with marketing/design backgrounds and Olivier’s athlete intuition, enabled unconventional choices—and may have made them brave enough to start.
- •Founders bring marketing, advertising, design, and athlete biomechanics
- •Eclectic skill mix compensates for lack of footwear industry experience
- •Naivety prevents overestimating obstacles
- •The team’s complementary strengths become a repeatable advantage
- 13:45 – 15:52
Scaling globally: the hockey-stick pattern across markets
On’s growth required patience: the first 2–3 years in a market are slow, built through community trust and specialty retail. Because Switzerland is small, On committed to being global early—creating repeated ‘takeoff’ moments as each new market reached critical mass.
- •Typical adoption curve: 2–3 years of grind before acceleration
- •Switzerland’s size forces a global mindset from day one
- •Expansion sequence: Europe → US (year two) → Japan (year three)
- •“Hockey stick” repeats market-by-market as scale compounds
- 15:52 – 19:33
Cracking the US: metro focus, influencer seeding, and D2C launch
David explains On’s US playbook: start in key metros, win local communities, and enlist credible allies rather than self-promote. A major inflection was building D2C early—pairing retail advocacy with a direct digital relationship as mobile and social took off.
- •US entry is essential for a true global sports brand
- •Go city-by-city (e.g., New York, SF, LA, Miami, Portland)
- •Retail partners act as trusted ‘allies’ for credibility
- •D2C begins around 2012; early sales modest but strategically important
- 19:33 – 26:17
From core athletes to mainstream culture—and expanding into apparel
The brand roots itself in elite performance (e.g., an Ironman world champion winning in prototypes) without fear of seeming too niche. As On crosses into popular culture, the company expands into apparel organically, then confronts new complexities like sizing and merchandising.
- •Athlete seeding leads to podium moments that validate performance
- •Mainstream crossover signal: celebrity wearing On on the Oscars red carpet
- •Apparel begins as a small internal ‘capsule’ to avoid wearing other brands
- •Hard parts: apparel sizing and finding partners who can merchandise full looks
- 26:17 – 29:55
Building On-owned retail: COVID-era launch and experience innovation
On decides to open its own stores shortly before COVID and ends up launching mid-pandemic—turning it into a learning-focused ‘soft launch.’ The retail concept emphasizes speed-to-try and community connection, notably through the ‘archive’ wall that makes fittings instant and maximizes human interaction.
- •First store concept finalized pre-COVID; launched during COVID
- •Deep partnership with local run communities; store becomes run hub
- •Key insight: reinvent retail to maximize interaction time over transaction time
- •‘Archive’ system enables rapid try-on by making all sizes instantly accessible
- 29:55 – 34:49
Culture, exploration, and the 2013 near-death supply-chain moment
David connects On’s innovation choices to its internal culture—especially an ‘explorer spirit’ that encourages teams to question conventions. He shares a near-death moment when a factory shutdown threatened a season’s production, prompting a leadership evolution: bring in experienced operators and expand the partnership model.
- •On’s ‘five spirits’ include an explorer mentality that drives experimentation
- •2013 crisis: factory shutdown traps materials and jeopardizes next season
- •Extreme workaround saves production, highlighting fragility of early scale
- •Lesson: don’t carry too much alone—hire experienced leaders (co-CEOs)
- 34:49 – 36:39
Funding philosophy: early friends, later VC, and profitable growth
The company begins with a small circle of hands-on early backers rather than classic venture scale from day one. David describes later interest from tech investors and a first ‘true VC’ entry, while emphasizing On’s balance: grow fast, but build durability and profitability.
- •Early funding from friends in Switzerland—operationally hands-on supporters
- •Tech investors become early believers as product love spreads
- •First notable VC: Stripes (consumer + tech intersection)
- •Strategic stance: fast growth paired with profitability and durability
- 36:39 – 41:28
Working with Roger Federer: product collaboration, awareness, and leadership lessons
David tells the full Federer story: spotting him wearing On, meeting for dinner, then responding to his challenge to bring CloudTec to tennis. The partnership becomes a major brand-awareness catalyst and a true product collaboration, revealing Federer’s humility and curiosity in the lab.
- •Origin: Federer posts wearing On; mutual contacts arrange dinner in Zurich
- •Challenge: adapt CloudTec to tennis; prototypes lead to the ‘Roger Pro’
- •Deal structure: Federer invests; spends 30–40 days/year in On Labs
- •Impact: major awareness spike; Federer adds second-sport credibility and asks tough questions
- 41:28 – 45:30
What brand means at On: community, ‘Dream On,’ and learning to scale awareness
David defines brand as a community plus an idea, centered on movement’s effect on the mind as much as the body. He explains On’s mission (‘ignite human spirit through movement’) and reflects that they may have waited too long to invest in broader cultural relevance beyond grassroots.
- •Brand = community + idea, not just marketing
- •Movement elevates mindset; ‘Dream On’ condenses mission and promise
- •Desired feeling: product obsession + spirit-lifting experience in stores
- •Retrospective: start investing in broader awareness earlier while staying grassroots
- 45:30 – 54:36
Brand inspirations, simplicity in product, and quick-fire on ambition and AI
In closing, David cites Apple as a model for blending technology, design, and human magic—and discusses the challenge of maintaining simplicity as features grow. The quick-fire covers his ‘120% beats 80/20’ philosophy, shifting views on AI’s creative disruption, and On’s five-year vision spanning running, tennis, and full-body apparel.
- •Admiration for Apple’s intersection of tech + design (small ‘magic’ details)
- •Simplicity requires iterative adding, then ‘shaving off’ again
- •Personal philosophy: craftsmanship and perfection can beat efficiency
- •AI may disrupt creative work; future role includes curation/orchestration
- •Five-year view: global brand, strong core running, scaled tennis, expanded apparel
