Fitness equipment provider Tonal Systems Inc. is reportedly headed for a big down round that could take away its unicorn status and more.
The San Francisco company is expected to raise about $125 million at a valuation of just $200 million to $300 million, according to The Information. Two years ago, when the startup last raised funds in a $250 million Series E round, its backers valued it at $1.6 billion.
Tonal's new fundraising effort comes after it's failed to find a company to acquire it, The Information reported. The startup, which offers a fitness product that has a built-in screen for video training sessions, held purchase talks with Peloton Interactive LLC, but those went nowhere, according to the report.
The markdown in Tonal's valuation may come as no surprise, given what's happened to Peloton stock price (Nasdaq: PTON). When the startup raised its Series A round, Peloton's shares were trading for more than $110 a piece. Now they're going for less than $10 each.
Since it launched in 2016, Tonal has raised about $520 million total. Among its investors are Golden State Warriors player Stephen Curry and tennis star Maria Sharapova.
Another prior backer, private equity firm L Catterton, is considering leading Tonal's new round, The Information reported.
Here's more Bay Area venture and startup news at midweek:
Fundings
- EpiBiologics Inc., San Mateo, $50 million, Series A: Mubadala Capital and Polaris Partners led the round for this developer of a method for eliminating proteins that cause or are related to diseases such as cancer. Vivo Capital and Alphabet Inc.'s early stage venture unit GV also invested.
- Quista Technology Pte Ltd. (dba Reebelo), San Mateo, $29 million, Series A extension: Cathay Innovation led the deal for this operator of a marketplace for used consumer electronics devices. The new investment, which Moore Strategic Ventures, Gandel Invest and Antler Innovation Pte Ltd. also participated in, upped the total Reebelo raised in the round to $50 million. Additionally, the Singapore-founded company said it has established its global headquarters in Silicon Valley.
- Luma AI Inc., Sunnyvale, $20 million, Series A: Amplify Partners led the round for this provider of 3D image capture and modeling software. Nvidia Corp., General Catalyst, Matrix Partners and South Park Commons also invested.
- Dope.Security Inc. (dba Dope Security), Mountain View, $16 million, Series A: GV led the round for this provider of enterprise cybersecurity software. Boldstart Ventures and Preface Ventures also participated.
- Unlearn.AI Inc., San Francisco, $15 million: Radical Ventures and Wittington Ventures invested in this provider of a service that uses artificial intelligence to model and study simulated patients in clinical trials.
- Revolv Global Inc., San Francisco, $15 million, Series A: Greenbacker Capital Management led the round for this provider of a service that helps operators of vehicle fleets adopt electric vehicles.
- Andes AG Inc., Alameda, $15 million, Series A extension: This developer of carbon capture technology for agricultural uses did not say who invested in its new financing, which brought the total raised in its Series A round to $30 million. The company announced in 2021 that Leaps by Bayer and Cavallo Ventures led its initial A deal.
- Coactive Systems Inc. (dba Coactive AI), San Jose, $14 million: Andreessen Horowitz and Bessemer Venture Partners led the round for provider of data analysis and search software for images. SV Angel, AME Cloud Ventures, Cloud All Star Fund and Next Play Capital also invested.
- Windfall Bio, Menlo Park, $9 million, Seed: Mayfield led the round for this developer of a process for transforming methane from cows into fertilizer for crops. Untitled, B37 Ventures, Baruch Future Ventures, Breakthrough Energy Ventures, Bessemer Venture Partners and Cavallo Ventures also participated.
- Butlr Technologies Inc., Burlingame, $6 million: Qualcomm Ventures and Carrier Global invested in this developer of building occupancy sensors for landlords.
- Thematic Capital Inc., San Francisco, $2.3 million, Seed: Lux Capital led the round for this provider of investment software used to create ad hoc stock indices. AirAngels Ventures also invested.
M&A
- Homebot Inc. bought Quo Finance Inc. for an undisclosed amount. Based in Palo Alto, Quo offers an app that helps people qualify for mortgages and search for homes to buy. Denver-based Homebot, a unit of software conglomerate Alpine SG, offers an app that connects real estate agents and loan officers connect with customers..
Funders in the news
- Race Capital has raised $180 million for its latest fund. The San Francisco-based venture firm focuses on early-stage tech and cryptocurrency companies.
- Lightspeed Venture Partners hired Claudia Levan to be its vice president of fundraising. Levan comes to the Menlo Park venture firm from General Atlantic, where she was a principal.
