Strava Seeks New Investors at $1 Billion-Plus Valuation

(Bloomberg) -- Strava Inc., a social network for athletes with nearly 70 million global registered users, is looking to raise equity from new investors at a valuation of more than $1 billion, according to people with knowledge of the matter.

The San Francisco-based company has hired an adviser to raise between $150 million and $400 million, said one of the people, who added that Strava is profitable. A deal that vaults the company to so-called unicorn status would roughly triple Strava’s prior valuation of $365 million, according to PitchBook.

“We are fundraising and anticipate a close in the next few months,” said Strava spokesman Andrew Vontz. “We have no indication of valuation and are excited to keep investing for athletes,” he added.

Strava, the Swedish word for “strive,” was founded by Mark Gainey and Michael Horvath in 2009. People use its technology to track or map activities such as runs, walks, bike rides and hikes. Its website and app also function as a social network, where athletes view the activities their friends engage in and participate in various types of virtual competitions.

Strava has more than 68 million accounts, up over 35% since February. In recent months, the company has attempted to steer free users toward its paid service, which costs about $5 per month.

Since 2014, the company has also shared data to help urban planners understand changing commuting patterns, in part to influence the construction of bike lanes. The company initially charged cities to access such data, but said last month it would share it with planners, governments and advocates for free.

Fitness tech companies have been attracting institutional investors as Covid-19 has spurred an increased focus on wellness. Zwift, a startup that hosts virtual-reality cycle races, last month raised $450 million from investors KKR & Co. in a funding round that valued it at more than $1 billion and will allow it to introduce its own indoor bike and other hardware.

Strava’s existing investors include Sequoia Capital, Go4it Capital, Jackson Square Ventures and Madrone Capital Partners, a family office tied to the billionaire Walton family.

©2020 Bloomberg L.P.