3 questions for Lemonade’s IPO

The Peloton effect

During the latest quarter, just a few earnings reviews stood out from the remaining. Zoom’s set of outcomes have been one in every of them, with the video-communications firm displaying huge acceleration because the world changed in-person contact with distant chat.

Another was Peloton’s earnings from the fourth quarter of its fiscal 2020, which it reported September 10th. The firm’s income and profitability spiked as people caught at residence turned to the linked health firm’s wares.

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Shares of Peloton have rallied round 4x since March, roughly the beginning of when the COVID-19 pandemic started to affect life within the United States, driving demand for the corporate’s at-home exercise gear. In late June, the leisure firm Lululemon purchased Mirror, one other linked health firm aimed on the residence marketplace for round $500 million.

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With Peloton’s 2019 IPO and its progress together with Mirror’s exit in 2020, linked health is demonstrably sizzling, and private-market traders are taking discover. A latest Tweet from health tech watcher Joe Vennare detailing a bunch of latest funding rounds raised by “digital health” firms made the purpose final week, piquing our curiosity on the similar time.

Is there actually some form of Peloton impact driving non-public funding into plenty of linked health startups? How sizzling is the extra nascent facet of linked health?

This morning let’s have a look via some latest funding rounds within the house to get a really feel for what’s happening. (If you’re a VC who cares in regards to the sector, be happy to e mail in your personal notes, topic line “linked health” please.) We’ll then execute the identical seek for Q3 2019 and see how the info compares.

Hot Wheels

To begin with the present market I pulled a Crunchbase question for all Q3 funding rounds for firms tagged as “health” after which filtered out the cruft to get a take a look at essentially the most pertinent funding occasions.

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Here’s what I got here up for for Q3 2020, thus far:

  • Zwift’s $450 million Series C (TechCrunch protection).
  • Tonal’s $110 million Series D (TechCrunch protection).


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