Connected Fitness Startup Tonal Raises $45M Series C

We’re seeing more fitness-related startups focused on customized and convenient training as work-outers seek alternatives to big box gyms.

This morning, one such startup, Tonal announced it has raised $45 million in a Series C round led by L Catterton’s growth fund. Evolution Media/CAA, Shasta Ventures, Mayfield, Sapphire Ventures, professional tennis player Serena Williams’ Serena Ventures and other investors also participated in the financing. 1

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The round effectively doubles the amount raised over time by San Francisco-based Tonal to $90 million, according to the company.

Founded in 2015 by supercomputer engineer Aly Orady, Tonal aims to disrupt the connected fitness space. It’s created an on-demand personalized strength-training system that is powered by artificial intelligence.

In a statement, Orady said his company’s mission is to create a personalized fitness “concept” that will offer smart on-demand video guidance, actionable data, and real-time feedback.

Tonal said it will use the new funds to further invest in its supply chain, distribution, and AI talent as well as in recruiting and operational efforts. It also plans to spend more on marketing activities such as retail pop-ups, events, and partnerships.

The company declined to provide any growth metrics or revenue information, but did note that it has grown to 105 employees today compared with 45 at this time last year. It’s also looking to hire across its hardware, software, design, video production, and marketing departments.

In December, our Savannah Dowling wrote about the most funded fitness startups helping people break a sweat. At that time, according to Crunchbase, the 10 most funded U.S. startups in fitness had raised more than $1.6 billion. The first startup on the list, spin bike and treadmill developer, Peloton, raised a $550 million Series F in early August 2018, which brought its total known funding to more than $994 million and its valuation to $4 billion, post-money.

Illustration: Li-Anne Dias