Peloton Races Towards an Exit
August 30, 2019 | Blog

Peloton Races Towards an Exit

Peloton, the private growth unicorn last valued at over $4 billion, has made its registration documents public. The company, founded in 2012, has ridden the tailwinds of consumer interest in health-oriented products and has adopted a subscription-based business model currently favored by investors. In the S-1, Peloton refers to a 2018 report by the Global Wellness Institute, which pegs their market opportunity at $600 billion. Will this coupling cause further investor curiosity?


Peloton sells both the equipment and the programs that motivate users to exercise and has found a degree of success in doing so. In our first pass at Peloton’s registration documents, we observed revenue growing at a 317 percent clip and subscribers increasing 373 percent from 2017 to 2019. In the more recent fiscal year, revenue growth outpaced subscriber growth. The company claims 92 percent of its sold subscriptions remain active.


Private investors have taken notice and prior to the dual class listing many of them garnered significant positions in Peloton. Tiger Global amassed the largest single position with nearly 20 percent of the voting power, followed by True Ventures, Fidelity, and TCV with 12 percent, 6.8 percent, and 6.7 percent, respectively. These positions as of the last primary funding in August 2018 were valued at $675 million, $410 million, $230 million, and $227 million respectively. These investors may be locked up for 6 months after the company’s forthcoming IPO. Public markets have shown a healthy appetite for high growth companies so far in 2019; will Peloton ride its way to a strong public showing or will it run out of breath before completing the course?

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.