Zwift raised $120m for expansion, big news...

WheelMeals
WheelMeals Posts: 86
edited January 2019 in Road general
Big fundraise, making it's valuation likely >$500m (and I'd guess the biggest valuation in cycling)?

https://techcrunch.com/2018/12/19/zwift ... ises-120m/

https://venturebeat.com/2018/12/19/zwif ... -contests/

Might have to finally make the leap (this mild winter I've been ok outside so far though)....

Comments

  • sloppyschleckonds
    sloppyschleckonds Posts: 8,019
    As if people don't spend enough time inside.....
    I'm sorry you don't believe in miracles
  • chris_bass
    chris_bass Posts: 4,913
    I heard an Interview with Eric Min (the founder/CEO) and zwift doesn't make money yet so I guess this is just to keep things going until they do.
    www.conjunctivitis.com - a site for sore eyes
  • sloppyschleckonds
    sloppyschleckonds Posts: 8,019
    Chris Bass wrote:
    I heard an Interview with Eric Min (the founder/CEO) and zwift doesn't make money yet so I guess this is just to keep things going until they do.

    Great these companies that dont make any money, but CEO's and Directors enjoy their £1m salaries
    I'm sorry you don't believe in miracles
  • jgsi
    jgsi Posts: 5,062
    Cue Dragons Den, Peter might invest, but Duncan in his pomp, I'd suggest otherwise with a few choice words re company valuations and salaries.
  • sloppyschleckonds
    sloppyschleckonds Posts: 8,019
    JGSI wrote:
    Cue Dragons Den, Peter might invest, but Duncan in his pomp, I'd suggest otherwise with a few choice words re company valuations and salaries.

    Is this about Vulpine?
    I'm sorry you don't believe in miracles
  • trek_dan
    trek_dan Posts: 1,366
    SloppySchleckonds wrote:
    Chris Bass wrote:
    I heard an Interview with Eric Min (the founder/CEO) and zwift doesn't make money yet so I guess this is just to keep things going until they do.

    Great these companies that dont make any money, but CEO's and Directors enjoy their £1m salaries
    You mean like every company then? And I suppose the company directors are all residents in the Cayman Islands?
  • WheelMeals
    WheelMeals Posts: 86
    Facebook, Amazon et al didn't make any money for a few years before becoming hugely profitable. Guess the investors betting on future of company & e-sports as a category etc, I saw the "running Zwift" just launched (need a treadmill at the moment, which limits the audience)

    The founders/early staff will make their money on their equity (esp of a >$500m or more valuation and exit or IPO)

    Guess Zwift could eventually become the largest valuation in cycling? Pinarello were doing around $55m t/o when bought, (at a 10x valuation) would have made LMVH's buy out $550m or so.
    Although Canyon do 159m Euros in turnover, so guess they could still be the largest...interesting times.

    Probably a net positive thing for Trainer Road, Fulgaz etc as proving out the market, though in the internet economy it does tend to be a winner takes all market (and that money is going to buy some serious talent/investment to evolve Zwift's product. Anyway enough cycling biz rambling....

    PS: Zwift haven't made it yet as this forum keeps bloody auto-correcting tying it to Swift!
  • cgfw201
    cgfw201 Posts: 680
    The potential for Zwift is pretty phenomenal. Rowing is up next i believe. Then sports like Golf have a future of indoor multiplayer competition. The running element hasn't taken off yet.

    Will be fascinating to watch.
  • cougie
    cougie Posts: 22,512
    It's an amazing product. Looking forward to their stage 5 of the Tour of London later.
  • sloppyschleckonds
    sloppyschleckonds Posts: 8,019
    cougie wrote:
    It's an amazing product. Looking forward to their stage 5 of the Tour of London later.

    Yeah, I'm looking forward to riding my bike outside this afternoon
    I'm sorry you don't believe in miracles
  • mamil314
    mamil314 Posts: 1,103
    SloppySchleckonds wrote:
    cougie wrote:
    It's an amazing product. Looking forward to their stage 5 of the Tour of London later.

    Yeah, I'm looking forward to riding my bike outside this afternoon

    Slopster, I like your input usually, but sometimes you come across insecure af
  • N0bodyOfTheGoat
    N0bodyOfTheGoat Posts: 6,057
    Charging £13pcm per user aged 16+ and not making money? Must be the annual multi million CEO salaries! ;)
    ================
    2020 Voodoo Marasa
    2017 Cube Attain GTC Pro Disc 2016
    2016 Voodoo Wazoo
  • WheelMeals
    WheelMeals Posts: 86
    I'd very much doubt the CEO or anyone at Zwift is on a multi million dollar or pound salary (few people are, "millions" in compensation usually comes via stock options)

    They are probably doing the classic tech company "raise and burn" (money) to fuel user growth/category leadership. Hence why profitability is taking a back seat to executing on strategy. Amazon for example is still loss making in Europe (though not in the US and also AWS is wildly profitable)

    Zwift team took risks and built a product and new category loved by many, so hats off fair play and they will have earned their millions.

    PS: If you want an example of corporate greed and excess look little close to home with CEO of house builder taking home £110m bonus (largely funded by taxpayer help to buy scheme) https://www.theguardian.com/business/20 ... nus-scheme
  • chris_bass
    chris_bass Posts: 4,913
    That example is a bit unfair, he was a CEO that increased full year profits by 20%, the bonus would have been in his contract, he didn't take the full amount and it was paid in shares. Given Brexit is hitting home builders pretty hard that bonus will be shrinking by the day!
    www.conjunctivitis.com - a site for sore eyes
  • cougie
    cougie Posts: 22,512
    SloppySchleckonds wrote:
    cougie wrote:
    It's an amazing product. Looking forward to their stage 5 of the Tour of London later.

    Yeah, I'm looking forward to riding my bike outside this afternoon

    I did ride my bike to do some shopping. That was ok but it's been pouring down all day and the last Friday before Xmas means demented drivers out.

    I'll be out Sunday though.
  • pst88
    pst88 Posts: 621
    Maybe finally they'll make the Android app work!
    Bianchi Via Nirone Veloce/Centaur 2010
  • Vino'sGhost
    Vino'sGhost Posts: 4,129
    Road Grand Tours is a better user experience and has some epic courses, no swimming under water or volcanos though lolol
  • thegreatdivide
    thegreatdivide Posts: 5,807
    Laugh Out Loud Out Loud?
  • MiddleRinger
    MiddleRinger Posts: 678
    Vino'sGhost wrote:
    Road Grand Tours is a better user experience and has some epic courses, no swimming under water or volcanos though lolol
    No volcano? I'm out...
    ~ ~ How fast is fast enough? ~ ~ ~ ~ Tempo Cyclist - Tasmania ~ ~
  • charlie_potatoes
    charlie_potatoes Posts: 1,921
    SloppySchleckonds wrote:

    Yeah, I'm looking forward to riding my bike outside this afternoon

    Yep! You'll get superb high definition graphics and surround sound. Very realistic.
    "You really think you can burn off sugar with exercise?" downhill paul
  • WheelMeals
    WheelMeals Posts: 86
    I stand by my criticism Jeff Fairburn collecting a £75m bonus. The renumeration committee at his company hadn't expected the massive boost from Help To Buy, hence why this payment (the largest in history in the UK) was so widely criticised across the media and public (and indeed why he was effectively fired).

    This wasn't an individual who risked anything to set up a company or create anything, just an exec who got lucky.

    So although he'll now be a pariah like Fred Goodwin, to be fair he's absolutely loaded.

    https://news.sky.com/story/persimmon-bo ... w-11546917

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