Riding Thematic Tailwinds with Peloton’s Streaming Workouts
We see this next iteration of exercise sitting at the intersection of our Connected Society and Fountain of Youth investing themes, and it sure doesn’t hurt to get a positive endorsement from Mary Meeker!
Peloton, a four-year-old startup that sells exercise bikes tied to a live-streamed workout experience, is revving up for expansion armed with fresh capital. The company announced it has recently closed a $325 million series E financing round, which brings its total valuation to $1.25 billion.
Founded in 2012, Peloton sells a high-tech and high-cost ($1,995) exercise bike that allows home users to have, essentially, the same type of experience that they would have at a spinning class. It does so by selling a subscription service that gives the user access to live and on-demand fitness group classes (along with archived ones) led by elite cycling instructors. It also provides performance tracking metrics and a real-time leaderboard designed to motivate users.
“We are changing the way people engage in fitness,” said Peloton founder and CEO John Foley. “
In April, the company announced a partnership with Westin Hotels and Resorts. Peloton’s commercial bike is already in over 30 Westin properties around the country.
“Peloton is supporting especially broad subscriber engagement and growth. We believe Peloton is the leader in a new business that has significant potential – physical interactive media,” said Mary Meeker, partner at Kleiner Perkins.
Source: Hot fitness equipment start-up to expand retail footprint | Chain Store Age
