The inside story of Peloton, a fitness media company that was turned down by over 400 investors but is now worth $4 billion
- Peloton CEO John Foley estimates that his company was rejected between 5,000 to 6,000 times by investors.
- Peloton is now worth $4 billion.
- Foley reveals the struggles he faced securing funding for Peloton early on.
When John Foley first pitched his idea for a fitness startup called Peloton to venture firms along the storied, four-lane stretch of Sand Hill Road six years ago, investors were wary.
"Every round, for six rounds," Foley said, recalling Peloton's first three years of fundraising. "Andreessen, Bessemer, Sequoia ... they passed again and again."
While Foley said that many investors expressed interest in owning a Peloton bike themselves, they were still hesitant to offer financial backing of their own. The company's plan was expensive and cumbersome: stationary, internet-connected bikes sold out of branded retail outlets, along with an online offering of subscription fitness classes.
"Most investors would say, 'Oh my gosh, the degree of difficulty is an 11 out of 10,'" said Foley. "They'd say, 'So what if you do all of this stuff and fail? You still don't know the market for this product.'" ...
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