How much more linked physical fitness VC activity are we seeing in 2020?
During the most recent quarter, only a few incomes reports stuck out from the rest. Zoom’s set of results were one of them, with the video-communications company revealing massive velocity as the world changed in-person contact with remote chat.
Another was Peloton’s profits from the fourth quarter of its fiscal 2020, which it reported September 10th. The company’s income and profitability spiked as folks stuck at home relied on the connected fitness business’s wares.
Shares of Peloton have rallied around 4x because March, roughly the start of when the COVID-19 pandemic began to impact life in the United States, driving need for the company’s at-home workout equipment. In late June, the leisure business Lululemon bought Mirror, another connected physical fitness business focused on the home market for around $500 million.
With Peloton’s 2019 IPO and its development together with Mirror’s exit in 2020, linked fitness is demonstrably hot, and private-market financiers are taking notification. A recent Tweet from fitness tech watcher Joe Vennare detailing a host of current financing rounds raised by “digital fitness” companies made the point last week, piquing our interest at the same time.
Is there truly some sort of Peloton impact driving private financial investment into lots of linked fitness startups? How hot is the more nascent side of linked physical fitness?
This morning let’s have a look through some current financing rounds in the area to get a feel for what’s going on. (If you’re a VC who appreciates the sector, do not hesitate to email in your own notes, subject line “connected physical fitness” please.) We’ll then carry out the same search for Q3 2019 and see how the data compares.
To begin with the present market I pulled a Crunchbase inquiry for all Q3 funding rounds for companies tagged as “fitness” and after that filtered out the cruft to get a look at the most important funding events.
Here’s what I came up for Q3 2020, to date:
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.