During most in the last quarter, only a few earnings reports stood out from the rest. Zoom's streak was one of them, with the video communications company showing tremendous acceleration as the world replaced in-person contact with remote chat.
Another was Peloton's earnings from the fourth quarter of fiscal 2020, which he reported on September 10. The company's revenue and profitability increased as people stuck at home turned to the related fitness company's products.
The Exchange explores startups, markets and money. Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.Peloton actions have increased about 4 times since March, roughly the beginning of when the COVID-19 pandemic began affecting life in the United States, driving demand for the company's home training equipment. In late June, leisure company Lululemon bought Mirror, another connected fitness company targeting the domestic market for about $ 500 million.
With Peloton's IPO in 2019 and its growth coupled with the release of Mirror in 2020, connected fitness is blatantly hot and private market investors are taking notice. A recent Tweet from technical fitness observer Joe Vennare Details on a number of recent funding rounds raised by "digital fitness" companies made the point last week, piquing our curiosity at the same time.
Is there really some sort of Peloton effect that pushes private investment into many connected fitness startups? How hot is the rising side of connected fitness?
This morning we take a look at some recent funding rounds in space to get an idea of what's going on. (If you're a VC who cares about the industry, feel free to email in your clipboard, please with the subject "connected fitness".) Then we'll do the same research for Q3 2019 and see how they come up. compared the data.
Hot Wheels
To start with the current market, I pulled a Crunchbase query for all third quarter funding rounds for companies marked "fitness" and then filtered the cruft to take a look at the most relevant funding events.
Here's what I've been thinking for Q3 2020, so far:
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