Silicon Valley fitness platform Tempo has raised $220 million in a Series C funding round led by SoftBank Vision Fund, according to Yahoo. Other backers included new investor Steadfast Venture Capital, and returning investors DCM, General Catalyst, Norwest Venture Partners and Bling Capital. This is the biggest Series C for a connected fitness firm.
The firm rolled out its initial at-home exercise programs in February 2020. Subscribers to the Tempo network get a six-foot touchscreen powered by artificial intelligence (AI) with 3D sensors to tap people’s movements while they work out. Users also get real-time data feedback.
Pre-pandemic, there was concern over the viability of high-tech, at-home equipment to facilitate fitness. Before Peloton filed for a public offering in New York City in 2019, there were media murmurings that working out at home had largely come and gone.
The worldwide COVID-19 pandemic changed that after fitness facilities temporarily shuttered — some for more than 12 months — in light of lockdown mandates and social distancing requirements. People sought fitness regardless, turning a brighter light on at-home alternatives for group exercise classes, treadmills, bikes, ellipticals and more.
Although gyms have largely reopened with varying capacity across the country, the move to get fit at home shows no signs of slacking.
A recent Consumer Trends report indicated that 66 percent of fitness consumers overall would actually rather keep exercising at home, pandemic or not. Among people under the age of 40, some 81 percent of respondents indicated that home workouts would be a long-haul change. Subscribers to Tempo pay a $39 per month membership fee plus costs ranging from $2,495 to $3,995 depending on the equipment and options chosen.
Tempo CEO and Co-Founder Moawia Eldeeb was born in Egypt and grew up in New York City. His studies at Manhattan’s Columbia University were focused on computer science but he also made money as a personal trainer. Former classmate and Tempo Co-Founder Josh Augustin serves as the startup’s chief technology officer.
Tempo raised $60 million in a Series B funding round in July 2020. The fitness equipment maker saw its valuation surge to $250 million due to the pandemic. CEO Eldeeb said at the time that he thought the company would be where it is now around 2025.
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