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Strava reaches unicorn status after raising US$110m

Series F funding round led by TCV and Sequoia Capital as connected fitness industry continues to boom.

17 November 2020 Sam Carp

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  • San Francisco-based company now valued at US$1.5bn, according to the Wall Street Journal
  • Other participants in round were Dragoneer Investment Group, Madrone Capital Partners, Jackson Square Ventures and Go4it Capital
  • Strava, which boasts 70m members in 195 countries, has added two million users per month in 2020

Social fitness platform Strava has reportedly achieved unicorn status after raising a further US$110 million in a Series F funding round.

The investment was led by venture capital firms TCV and Sequoia Capital and values Strava at US$1.5 billion, according to the Wall Street Journal.

Dragoneer Investment Group also participated in the round, alongside existing investors including Madrone Capital Partners, Jackson Square Ventures and Go4it Capital. 

Bloomberg first reported at the start of October that Strava was looking to raise equity from new investors at a valuation of more than US$1 billion. If the US$1.5 billion figure is correct, the value of the company has more than quadrupled from its prior valuation of US$365 million.

Founded in 2009 by Mark Gainey and Michael Horvath, Strava now has more than 70 million members in 195 countries, according to the San Francisco-based company, whose app is available for free and also offers a premium subscription for US$5 per month.

Strava’s mobile app allows users to record their exercise and share the results with followers. The company said it will use the new funding to develop more features, support its global community and expand its reach to serve more users.

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

“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,” added Neil Tolaney, general partner at TCV, which is also an investor in interactive indoor exercise bike company Peloton. “Strava’s community and unique product offerings motivate athletes to lead healthier, more active lifestyles.”

The funding round caps a year of rapid growth for Strava, which said it has been adding more than two million users per month to its community in 2020, while it has also rolled out 60 new features.

“We're excited to partner with TCV and Sequoia. Together we're building for athletes,” Horvath said. “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.”

Strava’s latest financing round is also another endorsement of the booming connected fitness sector, which has seen major growth this year as people look to remain active during coronavirus lockdowns. 

Last month saw fitness tracker manufacturer Whoop raise a further US$100 million as part of a Series E financing round, valuing the company at US$1.2 billion.

Prior to that, in September, online fitness platform Zwift secured an additional US$450 million after selling minority shares in a major round of funding led by global investment firm KKR.

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