Fitbit IPO Valued at $6.5 Billion, Marks Largest Venture Exit in Wearables
Jun 19, 2015 07:00
CST Updated
07:00
Health wearable device manufacturer Fitbit officially launched its IPO on the New York Stock Exchange on the morning of June 18 (North American time), garnering strong market enthusiasm. With a market valuation of $6.5 billion, it raised $732 million. One month ago, VCBeat reported on Fitbit’s preparations for going public, at which time its valuation was still $5 billion (Is Fitbit Poised to Become the First Sports-Tracking Wearable Company to Go Public?）。
Over the past few quarters, Fitbit’s revenue has maintained a steady growth trajectory, with Q1 2015 seeing a year-over-year increase of $125 million. These robust financial metrics provided a significant boost to market confidence, driving a 60% surge in its stock price on the first day of trading. This ranked among the largest first-day IPO gains in the U.S. in 2015, with the share price rising from around $20 to over $30.
Meanwhile, Fitbit’s successful IPO became the premier capital exit case in the wearable technology sector. The venture capital investors behind Fitbit included True Ventures (22.9% pre-IPO), Foundry Group (28.9%), SoftBank Capital (5.6%), and Felicis Ventures (less than 5%).
Over the past few quarters, Fitbit’s revenue has maintained a steady growth trajectory, with Q1 2015 seeing a year-over-year increase of $125 million. These robust financial metrics provided a significant boost to market confidence, driving a 60% surge in its stock price on the first day of trading. This ranked among the largest first-day IPO gains in the U.S. in 2015, with the share price rising from around $20 to over $30.
Meanwhile, Fitbit’s successful IPO became the premier capital exit case in the wearable technology sector. The venture capital investors behind Fitbit included True Ventures (22.9% pre-IPO), Foundry Group (28.9%), SoftBank Capital (5.6%), and Felicis Ventures (less than 5%).
