Digital Cycling Community Zwift Raises $27M Series A
Zwift, a digital platform that allows cycling enthusiasts to take virtual rides with fellow cyclists from the comfort of their home, announced this week that it has raised $27 million in Series A financing. The round was led by London-based private equity firm Novato Partners, with participation from Shasta Ventures, Waypoint Capital, Korean bike manufacturer Samchuly, and Max Levchin, the co-founder and former CTO of PayPal.
Zwift was founded in 2014 by Eric Min, Alarik Myrin, Scott Barger and Jon Mayfield to make indoor cycling a fun group experience. With a $10 monthly membership and a simple setup that connects biking equipment to the Zwift app, users can “race” with fellow indoor cyclists in immersive digital destinations or courses. Using the Zwift interface on a PC or Mac, riders can see which group member is trailing behind or catching up — exactly as if they were cycling together. Riders can also stay connected via headsets and microphones that allow them to send each other private messages or talk with each other. This social component and group dynamic is why Zwift has been described as the “multiplayer video game” for cyclists.
A similar provider of group cycling experiences is Peloton, a three-year-old fitness technology startup that has raised more than $100 million. Peloton charges substantially more than Zwift — $1,995 per bike, plus a $39-per-month subscription. But Peloton’s bike integrates both hardware and software components, including a multi-function touch screen that integrates performance metrics sensors and connects to Peloton’s virtual training classroom. By contrast, Zwift users can use any kind of bike but have to purchase their own smart training sensors — such as power meters, speed and cadence sensors, and heart rate monitors — to make it possible for Zwift to collect activity and performance data points.
In an interview with TechCrunch, Zwift CEO Eric Min said that the new funds will be used for product development and long-term growth programs.
