![](\"https:\/\/tctechcrunch2011.files.wordpress.com\/2017\/05\/peloton_fundraise_press_release_photo.jpg?w=480\")
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Have you ever taken a\u00a0class at SoulCycle<\/a>? Or better yet, Flywheel<\/a>?<\/p>\n Spinning has turned out to be a big business and there\u2019s one brand that\u2019s been gaining traction in the at-home fitness space. Peloton\u2019s $2000 bikes have developed a cult following, mainly because of its live-streamed\u00a0classes, which are offered as an added subscription and can be displayed on the bike screen.<\/p>\n The price of the machines may seem steep, but investors are betting that this is a billion-dollar company. Wellington Management, Fidelity Investments, Kleiner Perkins and True Ventures\u00a0led a $325 million Series E financing round, valuing the company at $1.25 billion.\u00a0Other investors include GGV Capital and Comcast NBCUniversal.<\/p>\n \u201cWe are changing the way people engage in fitness,\u201d said Peloton Founder and CEO John Foley, in a statement.\u00a0\u201cThis financing will allow us to expand our product and content offerings, open new showrooms across the country, and continue to innovate the experience we offer our members at every touchpoint.\u201d<\/p>\n Noted Kleiner Perkins investor Mary Meeker was also quoted in the release<\/a> about why she\u2019s investing in the company. \u201cPeloton 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.\u201d<\/p>\n I\u2019ve taken a couple of Peloton classes at their New York studio and recommend it. The\u00a0high-energy instructors and the detailed metrics on the Peloton bikes were enough motivation for a productive\u00a0workout.<\/p>\n Not everyone lives by a great\u00a0spinning studio, so I can see how the at-home classes\u00a0can be appealing. Peloton may be suitable for people who have the money and the space for the equipment. Once the upfront cost for the bike is paid for, the class subscription is just $39 per month.<\/p>\n But\u00a0competition or a new fitness craze could be roadblocks for Peloton. And the high price point for the bikes\u00a0will probably have to come down eventually, or\u00a0their growth could slow. They will likely release new\u00a0bikes, but it\u2019s possible that they could run into the GoPro problem<\/a>, where people don\u2019t bother to upgrade.<\/p>\n Perhaps this is why the company recently launched its commercial business<\/a>, and is selling bikes to gyms for $3000 a pop. They say that the higher price is because these machines able to endure more usage, but they\u2019ve probably also found that some fitness studios are willing to shell out cash\u00a0for upgrades.<\/p>\n This is a different kind of fitness hardware investment for the tech community.\u00a0Most of the other\u00a0bets\u00a0had been on \u201cwearable tech,\u201d such as Fitbit.<\/p>\n Peloton\u00a0is headquartered in New York and previously raised at least $119 million in\u00a0financing since it was founded in 2012.<\/a><\/p>\n Featured Image: Business Wire<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"Related Articles<\/h2>\n<\/p>\n
Have you ever taken a\u00a0class at SoulCycle? Or better yet, Flywheel? Spinning has turned out to be a big business and there’s one brand that’s been gaining traction in the at-home fitness space. Peloton’s $2000 bikes have developed a cult following, mainly because of its live-streamed\u00a0classes, which are offered as an added subscription and can be displayed on the bike screen.… Read More<\/a><\/p>\n\n<\/img><\/a>
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