Jawbone Founder Is Trying to Raise Funds for Health Venture
Jawbone Founder Is Trying to Raise Funds for Health Venture
(Bloomberg) -- The founder of Jawbone, the failed maker of Bluetooth earpieces and fitness wristbands, is talking with investors in the hope of funding his new health-care venture, said people with knowledge of the discussions.
The latest startup from Hosain Rahman, Jawbone Health, is a medical device spinoff from the now-defunct predecessor. Rahman is looking to raise $40 million to $50 million, said one of the people, who asked not to be identified because the discussions were private. In an emailed statement, a spokesman for Jawbone Health said: “Practically every Silicon Valley company is looking at and evaluating funding partners.”
Rahman came under the spotlight last year when the original Jawbone shut down after raising about $900 million. He’s taking a conciliatory tone this time, telling potential investors his experience at Jawbone provided valuable lessons in how to run a hardware business, said the people.
If completed, the deal could sell as much as half of equity to investors and value Jawbone Health at about $90 million, one person said. The startup employs a few dozen people, including several engineers who previously worked at Jawbone, according to data on LinkedIn.
--With assistance from Selina Wang
To contact the author of this story: Sarah McBride in San Francisco at smcbride24@bloomberg.net.
To contact the editor responsible for this story: Mark Milian at mmilian@bloomberg.net, Andrew Pollack
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