Strava Announces $110 Million Financing in Partnership with TCV and Sequoia

SAN FRANCISCO, Nov. 16, 2020 /PRNewswire/ — Strava, the leading social platform for athletes, today announced that it has raised $110 million in a Series F financing round led by TCV and Sequoia Capital, with participation by Dragoneer Investment Group and existing investors including Madrone Capital Partners, Jackson Square Ventures and Go4it Capital.

Strava is the largest sports community in the world with more than 70 million members in 195 countries. This financing will help the company build more features that athletes love, support its global community and expand to better serve more athletes.

“We’re excited to partner with TCV and Sequoia. Together we’re building for athletes,” said Strava co-founder and CEO, Michael Horvath. “Today that means making Strava indispensable to athletes everywhere. When we do that well, we connect athletes to what motivates them, fuel the growth of our community, and strengthen our business. The experiences of Michael Moritz at Sequoia and Neil Tolaney at TCV with companies at Strava’s stage and beyond will be invaluable as we strive to enable athletes worldwide to get the most out of their active lives.”

In 2020, Strava has seen rapid growth, adding more than 2 million athletes per month to its community. Additionally, the company rolled out over 60 new features for athletes as part of a renewed commitment to subscribers and made Strava Metro free for urban planners and city governments. Strava Metro’s aggregate data helps over 300 city governments and urban planners create safer cities for pedestrians and cyclists.

“Strava has spent a decade accumulating the mojo required to help people become healthier and fitter,” said Michael Moritz, Partner at Sequoia. “In the future, being on Strava will be essential for anyone aspiring to live a healthy life.”

Strava gives anyone, anywhere access to an athletic community. Staying motivated is the oldest and biggest problem in health and fitness, but Strava has tapped into the magic ingredient to keep people moving: human connection. Strava enables motivation through competition, camaraderie and accountability. It’s a formula that works – 94% of Strava subscribers who set a goal remain active nine months later.

“TCV has been bullish on and an active investor in the connected fitness and health ecosystems over an extended duration. As the largest and most engaged community of athletes in the world, Strava is uniquely positioned and boasts a strong value proposition for athletes and partners alike,” said Neil Tolaney, General Partner at TCV. “Strava’s community and unique product offerings motivate athletes to lead healthier, more active lifestyles. In addition, Strava’s outsized growth in community membership, activities and subscribers demonstrates its importance for athletes to best fulfill their objectives.”

For more information about Strava, or to join its global community of 70 million athletes, please visit Strava.com.

J.P. Morgan served as sole placement agent for Strava in connection with the transaction and O’Melveny & Myers LLP provided legal counsel to Strava.

Press Contact

Strava
Andrew Vontz, VP Communications at Strava, press@strava.com

TCV
Katja Gagen, Principal and Head of Marketing, kgagen@tcv.com

About Strava
Strava is the leading social platform for athletes and the largest sports community in the world, with over 70 million athletes in 195 countries. If you sweat you’re an athlete, and Strava’s mobile apps and website connect millions of active people every day. Strava gives athletes simple, fun ways to stay motivated and compete against themselves and others without having to be in the same place at the same time. All athletes belong on Strava no matter where they live, which sport they love or what device they use. Join the community and make the most of your sport with a Strava subscription.

About TCV
Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since its inception, TCV has invested over $14 billion in leading technology companies and has helped guide CEOs through more than 125 IPOs and strategic acquisitions.TCV investments in consumer subscription companies include Airbnb, Dollar Shave Club, EA, Expedia, Facebook, LegalZoom, Netflix, Peloton, Spotify, Zillow, and more. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit https://www.tcv.com/.

About Sequoia
Sequoia helps daring founders build legendary companies from idea to IPO and beyond. We spur founders to push the boundaries of what’s possible. In partnering with Sequoia, companies benefit from 48 years of tribal knowledge from working with founders like Steve Jobs, Larry Ellison, Larry Page, Jan Koum, Brian Chesky, Drew Houston, Adi Tatarko, Julia Hartz and Jack Dorsey. In aggregate, Sequoia-backed companies account for more than 20% of NASDAQ’s total value. From the beginning, the vast majority of money we invest has been on behalf of non-profits and schools like the Ford Foundation, Mayo Clinic and MIT, which means founders’ accomplishments make a meaningful difference.

About Dragoneer Investment Group
Dragoneer is a San Francisco-based, growth-oriented investment firm with approximately $12 billion in long-duration capital from many of the world’s leading endowments, foundations, sovereign wealth funds, and family offices. Dragoneer has a history of partnering with management teams growing exceptional companies characterized by sustainable differentiation and superior economic models. The firm’s track record includes public and private investments across industries and geographies, with a particular focus on technology-enabled businesses. Dragoneer has been an investor in companies such as Airbnb, AmWINS, Ant Financial, ByteDance, Datadog, DoorDash, Farfetch, Livongo, Nubank, PointClickCare, ServiceNow, Slack, Spotify, Square, Twilio, Uber, Snowflake and others.

About Jackson Square Ventures
Jackson Square Ventures is the anti-hype venture capital firm focused on SaaS and Marketplace businesses that can be standalone at scale. Its portfolio includes Alto Pharmacy, Cornershop, DocuSign, Mynd, Jackbox Games, Seismic, Strava, and Upwork, among others.

About Go4it Capital
Go4it Capital partners with exceptional entrepreneurs, who are building innovative global businesses in sports, digital media and well-being. Together, their dream is to create a more active and enjoyable world. Go4it has also invested in ELEVEN Sports, WSC Sports, Fazenda Futuro, and G2 Esports.

SOURCE Strava


Ride to the Mountaintop: How Peloton Re-Invented the Fitness Industry with a Revolutionary Business Model, Precise Execution, and Focus on Culture & Community

Recognized as a true disruptor of an established industry, at-home fitness pioneer Peloton initially struggled to get funded. Investors questioned whether Peloton could unseat entrenched workout chains and exercise machine makers, especially with a business model that requires blended expertise in hardware, software, content, retail, and logistics. But CEO John Foley and his co-founders persisted in their vision of a fitness company that actually gets people fit, delivering revenue growth, expanding internationally, going public, and continually adding value to memberships.

TCV led Peloton’s Series F financing round in 2018 and supported the company on its journey to its IPO. John Foley joins Peloton board member and TCV general partner Jay Hoag for a wide-ranging discussion with multiple lessons for entrepreneurs:

  • Why the fitness industry was ripe for disruption
  • Why many investors had a tough time seeing the potential in Peloton’s approach
  • How Peloton makes memberships more affordable than you thought
  • Why culture and social responsibility are increasingly important to business success
  • How to navigate the road to the IPO and life as a public company

For all this and much more, settle back and press play.

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The views and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the authors and disclaims any responsibility therefor. This interview and blog post are not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified above are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


Peloton Announces $550M In Series F Funding Led By TCV

NEW YORKAug. 3, 2018 — Peloton, the global fitness technology company, today announced a $550 million Series F financing round; capital that will enable it to continue to innovate aggressively and to expand into more international markets. The round is led by TCV, one of the world’s largest technology growth equity firms. Nearly all of Peloton’s existing institutional investors, including Tiger Global, True Ventures, Wellington Management, Fidelity (FMRCo), NBCUniversal, Kleiner Perkins and Balyasny participated in this round, joined by new investors, including Felix Capital, Winslow Capital and other mutual fund partners.

Jay Hoag, Founding General Partner of TCV, who also serves on the board of Netflix, Electronic Arts, Zillow, and other prominent technology companies, will join the Peloton Board of Directors. He joins TCV Venture Partner Erik Blachford, who has been on Peloton’s board since 2015.

“We are truly honored to partner with TCV and with Jay Hoag personally,” said John Foley, founder and CEO of Peloton. “TCV’s reputation, experience, and involvement in businesses like Netflix, Spotify and Facebook will be invaluable as we build Peloton into one of the most unique and influential global consumer product and media companies of our day.”

“We look for companies that offer their consumers a great value proposition, have engaged and delighted customers, and are led by visionary CEOs who have built a world-class management team,” said TCV’s Founding General Partner Jay Hoag. “We found all of these characteristics in Peloton and look forward to working with John and the entire team on their journey to revolutionize the home fitness category.”

The $550M Series F round brings the total equity raised by Peloton to nearly $1B since its inception, and positions Peloton to take full advantage of the growing global trend of instructor-led fitness classes moving into the home.

Since its last round of funding, Peloton has seen rapid growth across several key areas and is preparing to launch several new initiatives, including the following:

  • Global Expansion: This fall, the Peloton Bike will launch in the UK and Canada, marking the brand’s first new markets outside the US.
  • Retail Presence: Peloton plans to open at least 20 new retail showrooms in the US, UK and Canada by early 2019, bringing its total number of locations to more than 60 worldwide.
  • Peloton Tread: The company will launch its highly-anticipated second product, the Peloton Tread, this fall. Hundreds of running, walking, bootcamp and strength classes have already been produced in Peloton’s Tread Studio, which opened in New York’s West Village in May 2018.
  • Peloton Digital: Peloton recently introduced a new digital membership that offers over 10,000 live and on-demand, instructor-led classes across several fitness categories, such as cycling, running, walking, bootcamp, strength, stretching and yoga, for under $20/month.
  • Real Estate Footprint: Peloton announced plans to open a 25,000+ square foot campus in Plano, TX, which will serve as its member support hub, and Peloton Studios, a 35,000+ square foot, state-of-the-art flagship studio complex at Brookfield’s Manhattan West development in New York City. This new fitness facility will house Peloton’s broadcast and production operations and multiple studios from which thousands of group fitness classes will be hosted and live streamed for the Peloton Bike, Peloton Tread and Peloton Digital.

J.P. Morgan served as the sole placement agent to Peloton on the transaction.

The financing will be used for general corporate purposes, including providing liquidity to certain existing shareholders, and is scheduled to close in the third calendar quarter, subject to customary closing conditions and regulatory approvals.

About Peloton

Founded in 2012, Peloton is reinventing fitness by bringing live and on-demand boutique-style studio classes to the convenience and comfort of your own home. Our immersive fitness content, taught by Peloton’s roster of elite instructors, features real-time motivation and curated playlists of your favorite artists. The Peloton experience can be accessed through the Peloton Bike, the Peloton Tread, or Peloton Digital, an iOS app that offers an all-access pass to a full slate of fitness offerings, anytime, anywhere. Peloton is changing the way people get fit through a comprehensive and socially connected experience that makes every workout both efficient and addictive. The company has a growing number of retail showrooms across the US and, starting this fall, will launch in the UK and Canada. For more information, visit www.onepeloton.com.

About TCV

Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since inception, TCV has invested over $10 billion in leading technology companies and has helped guide CEOs through more than 115 IPOs and strategic acquisitions. Investments include Airbnb, Altiris, AxiomSL, Believe Digital, Dollar Shave Club, EtQ, ExactTarget, Expedia, Facebook, Fandango, GoDaddy, HomeAway, LinkedIn, Netflix, Rent the Runway, Sitecore, Splunk, Spotify, TourRadar, Varsity Tutors, and Zillow. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit www.tcv.com.

Media Contacts: 

Jessica Kleiman, (646) 829-1633, jkleiman@onepeloton.com 

Katja Gagen, (415) 690-6689, kgagen@tcv.com

SOURCE Peloton

Related Links

http://www.onepeloton.com