Mirror competitor Tempo raises a $60M Series B
No doubt about it, home fitness is hot. The category had already been gaining considerable traction in recent years and months, but the ongoing pandemic has undoubtedly accelerated interest by orders of magnitude. And understandably so. After all, while some businesses have begun reopening in some locations, gyms are still a big red flag, with one of the highest potential transmission risks of any communal space.
This morning Tempo announced a healthy $60 million Series B, led by Norwest Venture Partners and General Catalyst, along with a repeat investors Founders Fund, Signal Fire, DCM, Y Combinator and Bling Capital.
The news comes almost exactly a month after Mirror, one of the San Francisco-based company’s chief competitors, was acquired by fitness brand Lululemon for $500 million. Also worth noting here is the continued success of Peloton, whose streaming fitness classes have continued to catapult the home fitness equipment maker. A number of other startups have announced raises in recent weeks, while stalwarts like Technogym have introduced their own home streaming services.
The Tempo device runs ~$2,000, plus a $39 monthly membership to its content, which includes strength, cardio and various other exercises as either live streams or on-demand content. Notably, the company says it’s on track to hit a $100 million run rate by year’s end, owing in part to sales that have jumped 500% since the company opened up pre-orders this February (without disclosing actual unit sales).
That’s due, no doubt, to word of mouth, but the company certainly isn’t discounting the role of COVID-19 in its fast success. “With tens of millions unable to go to the gym or attend classes in person, consumers’ fitness needs have evolved,” the company notes in a press release. “App-based services lack the necessary equipment to be effective for most people, while previous smart devices often do little more than stream videos without two-way guidance.”