The program will help companies develop, and assess, mental health services for their employeesRead more...
Fitbit the company ended its first day of trading up over 48% above its IPO price
The Fitbit IPO turned out to be a pretty big success all around. The company raised $732 million in its offering, making it the third-largest U.S. IPO this year. It ended the day at up 48.4% from its $20 IPO price, at $29.68 a share. Pretty good
But it gets better. It also has now, with a valuation of $4.1 billion, it has become the third wearables company to exit at over $1 billion, and is also the largest exit for venture-backed wearable company ever, according to a report from CB Insights.
The other two companies to exit in that range were GoPro and Oculus.
High definition camera manufactuerer GoPro had an IPO of its own in 2014, exiting at a valuation of $3.1 billion; the company is now selling at $58.28 a share, almost two and half times it's $24 IPO price. FitBit’s IPO was 32% larger than GoPro‘s.
Immersive virtual reality technology company Oculus, on the other hand, exited when it was bought by Facebook in March of last year for $2 billion.
After that, the numbers fall sharply. Smart eyewear company Recon was bought by Intel on Wednesday for $175 million, while Intel also bought Basis, maker of the popular wristwatch health tracker, for $100 million in 2014.
Rounding out the top five deals, BodyMedia, the developer of on-body monitoring systems that collect physiological data to improve health, wellness and fitness, was purchased by Jawbone in 2013. Jawbone, which is said to be another likely IPO candidates, has also become Fitbit's nemisis in recent months due to a pair of lawsuits.
One of the big winners in the Fitbit IPO was True Ventures, which had a 22.9% pre-IPO stake); this was the firm's its first portfolio IPO ever. Others included Foundry Group, with a 28.9% stake; SoftBank Capital with 5.6%; and Felicis Ventures, which had less than 5%.
This is turning out to be a defining moment for wearables, as they are set to explode this year. with over 45 million units expected to sell, more than double the number sold in 2014.
In all, 19.6 million wearables were shipped in 2014, a number that will more than double, going up to 45.7 million units, in 2015. By 2019, total shipment volumes are forecast to reach 126.1 million units. That means it will have a five-year compound annual growth rate of 45.1%. Translation: you're going to start seeing a lot more wearables very soon.
Of course, a lot of that is going to be due to the release of the Apple Watch. All of these factors seemsto be creating a perfect storm for companies in the wearables space, and if others, like Jawbone, are smart they'd follow Fitbit into the public sector.
(Image source: fitbit.com)
Support VatorNews by Donating
Read more from our "Trends and news" series
The company helps doctors comply with regulations that can stand in the way of treating patientsRead more...
The company recently went through the HHS PandemicX and the AARP Age-tech acceleratorsRead more...
Related Companies, Investors, and Entrepreneurs
Joined Vator on
Did I get enough exercise today? How many calories did I burn? Am I getting good quality sleep? How many steps and miles did I walk today? The Fitbit Tracker helps you answer these questions.
Joined Vator on
CB Insights is a private company database that provides real-time information on the world's most promising companies, their investors, their acquirers and the industries they compete in to help you invest smarter.
Since launching in 2010, CB Insights has become the most trusted and loved source for private company information. Hundreds of clients (including New Enterprise Associates, Cisco, Salesforce, Castrol and Comcast) rely on CB Insights to help them answer the tough questions.
If you like data, startups or quality analysis, join the other 110,000+ subscribers of our free newsletter.
We received a grant from the National Science Foundation in 2010 and Series A investment from RSTP in 2015.
We're hiring! Want to join a fast-moving, fun-loving group of data lovers? Head over to our jobs page.