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Tech's New Workout Plan: Peloton vs. Mirror vs. ClassPass


Michael Wenner   July 18, 2019

1 and 2 and 3 and 4 and get them startups right...A new crop of tech companies has set their eyes on the exercise industry, a space that has long seen little movement in business models and offerings. The new focus on the health and wellness industry is in part due to changing spending habits by Americans.

In a 2017 survey, American adults were spending $155 per month on average on health and fitness. As a result, it’s not surprising that startups, like Peloton, Mirror, and ClassPass are vying to capture this health conscious demographic. Below, we’ve provided an overview of the three leaders in this burgeoning space.


Peloton has taken the excitement of a spin class and brought it into the comfort of your home. Their signature product is a stationary bike with an electronic screen that can stream both live and on-demand spin classes and bike workouts. Although it has a steep price tag of $2,245 on top of a $39 monthly membership, it has gained a cult following and has now surpassed the membership of the spin class giant SoulCycle.

Peloton was born out of the vision of bringing the experience of fitness classes to people who couldn’t fit the schedules of traditional workout class times into their daily routines. Although Founder John Foley had a hard time raising capital in the beginning, Peloton has raised almost $1 billion in funding and is valued at over $4 billion.


Mirror, similar to Peloton, aims to bring the fitness classroom experience to the home through a ‘smart’ mirror. The product, which resembles a full size mirror, allows the user to see and follow a virtual instructor (yoga, cardio, strength, boxing, etc.) while enabling the user to watch their own movements in the reflection. Sporting a price tag of $1,495 and a monthly subscription of $39, Mirror is also targeting the affluent and time constrained professionals market.

Founded by Harvard graduate Brynn Putnam, Mirror has raised $40 million and is only valued at $300 million at this time. Although eclipsed by Peloton’s success, Peloton’s own popularity has helped Mirror gain traction as well.


Whereas Peloton and Mirror are helping people exercise at home, ClassPass is doing the opposite and getting people to attend the more traditional in-gym classes. The company provides a first come first serve marketplace that lets users find and book fitness classes, even if they don’t belong to the corresponding gym or studio. Payal Kadakia, the founder of ClassPass, started the service as a way to book dance classes, but pivoted towards fitness. The advantage of ClassPass is that, with subscriptions ranging from $45 to $135 a month, the user is able to choose from an array of fitness related classes (Spin, Yoga, Boxing, etc.) and attend them without any extra fees.

With a total funding of $255 million and a valuation of $610 million, ClassPass recently acquired a smaller competitor and is well positioned to be the next unicorn in the fitness tech space.

Peloton’s IPO

As the biggest startup out of the three by far, Peloton is now setting its sights on going public. To that end, the company recently filed confidential IPO paperwork with the SEC. Unlike most tech startups, Peloton has been able to quickly become cash flow positive, and could be better positioned than its money losing tech peers (Uber, Lyft) in its public offering. As with some tech IPOs in 2019, Peloton’s IPO could be one full of surprises.

Peloton IPO Date: TBD.
How to Invest in Peloton Stock: Exchange TBD.
Peloton IPO Price: TBD.

Check back for updates as more news about Peloton’s IPO approaches.

P.S. SoulCycle pulled plans to go public in Spring of 2018 due to "market conditions." That doesn't mean you can't tap it back. #SoulFam

Debunking the S-1

PelotonS-1IPOsHow to Read S-1LyftPostmates
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Risun Udawatta   February 28, 2019

Everyone, please take your assigned seats — Intro to “How to Read an S-1” is now in session. In today’s class, we’ll be providing a brief overview of the primary IPO regulatory filing (or the “S-1” as it’s known in the securities world) and which sections of this document to focus your attention on. Given the slew of unicorns filing confidentially in recent months, it’s important to be familiar with this document for when these companies file publicly.

2019 may prove to be a banner year for initial public offerings, as more unicorns take steps towards the public markets. Within the last few months, we’ve seen Lyft, Uber, Postmates, and Slack confidentially file their IPO paperwork, along with Peloton, CloudFlare, and CrowdStrike hiring investment bankers as first steps in their IPO processes. As the public waits for these startups to publicly file their respective S-1, below is a brief how-to guide to help you tackle these documents.