Sara Blakely turned a $5,000 Spanx investment into a $1.2 billion fortune in 21

Blakely’s entrepreneurial journey was unconventional from the start. With no formal training in business and no outside investors, she developed her initial product - an innovative type of shapewear - working from her apartment. She wrote her own patent application, navigated the complexities of clothing manufacturing, and began to sell her products directly to retailers. Her focus on the customer experience led Spanx to stand out in the growing shapewear market, and soon the company was expanding its offerings to include leggings, denim, activewear, swimwear, and more.

Spanx gained national attention in its early years when media personality Oprah Winfrey featured the product on her “Favorite Things” list in 2000. This endorsement provided a major boost, helping to propel Spanx into households across the United States. Over the next two decades, the brand expanded its presence and influence, with Blakely herself becoming a prominent figure in business. She was named one of TIME magazine's 100 most influential people and appeared on the cover of Forbes as the youngest self-made female billionaire.

In October 2021, after 21 years of self-directed growth, Spanx announced a landmark change. Global investment firm Blackstone revealed it had reached an agreement to acquire a majority stake in the company at a valuation of $1.2 billion. The deal marked the first time Spanx had welcomed outside investors and set the stage for further expansion. According to Blackstone, Blakely would retain a significant equity stake in Spanx and transition to the role of Executive Chairwoman, continuing to work alongside the company’s existing management team.

The investment round attracted several well-known women, including Oprah Winfrey, actress and Hello Sunshine founder Reese Witherspoon, and Bumble founder Whitney Wolfe Herd. Two female-led investment firms, G9 Ventures and Able Partners, also participated in the funding. Blackstone noted that its investment team for the deal was itself comprised entirely of women, as was the newly announced Spanx board of directors.

Blackstone’s Ann Chung, Global Head of Consumer for Blackstone Growth, said the partnership would help Spanx drive product innovation, fuel international growth, and accelerate its digital transformation. The investment in Spanx followed Blackstone’s recent pattern of supporting female-founded companies, including stakes in Bumble and Hello Sunshine.

Sara Blakely has also become known for her philanthropic initiatives. In 2013, she signed the Giving Pledge, agreeing to donate half her wealth to charitable causes. Through her personal foundation, she has contributed millions to supporting women in business and other causes.

As Spanx moves ahead under new majority ownership, the deal signifies a pivotal moment for the company and highlights the changing landscape for female entrepreneurs seeking to scale their businesses through strategic partnerships. For Blakely, the journey from selling fax machines to leading a billion-dollar brand stands as a testament to perseverance and customer-focused innovation.