Whoop Raises $200M for Fitness Wearable

Whoop Secures $200 Million in Series F Funding

Established in 2012, Whoop has steadily gained recognition, despite not yet being a widely known brand in the fitness tracker market. The company has consistently attracted both users and substantial investment over time.

Our last update on the Boston-based company was in late 2019, following a $55 million funding round. Now, Whoop has announced a significant $200 million raise.

Valuation and Funding Details

This Series F round elevates Whoop’s total funding to almost $405 million – a considerable investment given the company’s size. The round was spearheaded by SoftBank’s Vision Fund 2, resulting in a striking $3.6 billion valuation.

Further investment came from IVP, Cavu Venture Partners, Thursday Ventures, GP Bullhound, Accomplice, NextView Ventures, and Animal Capital.

These new investors join existing backers, which include the National Football League Players Association, Jack Dorsey, and numerous professional athletes.

Strategic Focus on Athletes and Beyond

Whoop differentiates itself by specifically targeting athletes, a strategy that contrasts with consumer-focused wearables like the Apple Watch and Fitbit.

The company provides tailored solutions for sports teams, as well as for businesses, healthcare providers, and government/defense sectors.

Recently, Whoop gained attention when Fitbit introduced a “Daily Readiness Score” with the Charge 5, a feature many compared to Whoop’s more sophisticated analytical capabilities.

Growth and Subscription Model

The company attributes its decision to seek additional funding to the “rapid growth” of its membership base over the last year.

This growth was likely spurred by the 2019 decision to offer the $500 wearable device for free, shifting the focus to a subscription service.

Subscription plans begin at $18 per month for an 18-month commitment, with shorter memberships incurring higher monthly fees.

Future Plans and Expansion

Whoop intends to expand its reach internationally, moving beyond the U.S. market.

The substantial capital infusion will also be allocated to research and development, enhancing its hardware, software, and analytical tools.

Furthermore, the company plans to increase its headcount, which currently exceeds 500 employees, with nearly half joining within the past year.

“We are thrilled to deepen our partnership with SoftBank as we grow internationally,” stated founder and CEO Will Ahmed. “Despite our impressive growth in the past year, the potential of our technology and the broader health monitoring market remains largely unexplored.”