Whoop was founded in 2012 and is not a household name in fitness trackers. The company has seen its fair share of conversions over the years. The company has not had any difficulty in attracting venture capital over time. The last time we visited the Boston-based company was late-2019 when it had raised $55 million. It has now raised $200 million.
Whoops' Series F round brings its total funding to $405 million, which is a significant investment for a company this size. SoftBanks Vision Fund 2 led the round. It values Whoops at an astonishing $3.6 billion.
IVP, Cavu Venture Partners and Thursday Ventures are additional investors. They join an extensive list of past backers that includes Jack Dorsey, the National Football League Players Association and professional athletes.
This is a stark contrast to the Fitbit and Apple Watch, which are popular wearables for consumers. The company offers solutions for healthcare, government, and sports teams.
The Whoops name was in the news recently, when Fitbit announced a DailyReadiness Score for the Charge 5. Many compared it to the company's more advanced analytics.
As a reason for seeking additional funding, the company cites the rapid growth of its membership offering over this past year. This was probably due to the fact that the company decided in 2019 not to offer the $500 wearable and instead focused on a subscription service starting at $18 per month for an 18-month membership. The shorter the membership, however, the higher the monthly fee.
Whoop plans to expand internationally beyond the U.S., using the huge influx of cash for R&D on its hardware, software, and analytics solutions. The money will also be used to increase headcount, currently at over 500 with nearly half of them joining in the last year.
SoftBank is a great partner and we are excited to expand our relationship with them as we grow internationally," Will Ahmed, founder and CEO, stated in a press release. Although we have seen remarkable growth over the last year, our technology's potential and the huge market for health monitoring remain largely untapped.