Long Beach-Based Fitness Platform Zwift Announces $120 Million In Funding

By Dan Anderson ● December 22, 2018

Zwift, a Long Beach, California-based multiplayer video game technology company that has built cycling, running, and fitness platforms, has raised $120 million in Series B funding. This round of funding was led by Highland Europe. And True Capital, Causeway Media, and Novator also participated in this round.

With this funding round, Zwift plans to invest in esports and further the growth of its running platform. Zwift’s app for PC, Mac, iOS, Android, and Apple TV enables users to ride and run with friends around the world. And they can participate in complete structured workouts and participate in group events in virtual environments.

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Photo: Zwift

“In 2018, more than one third of the Tour de France peloton were Zwifters. With that support already in place, we are in the unique position of being able to combine affordable physical endeavour with video gaming technology, ultimately setting the stage for us to become the first true esport of its kind,” said Zwift co-founder and CEO Eric Min in a statement.

“Zwift is a fantastically innovative company and they are certainly leading the way in the indoor training space,” added Highland Europe partner Tony Zappala. “It’s a highly scalable business and we’ve been impressed with how they have already managed to expand globally – already 70 percent of current subscribers are from outside the USA. Research points to an audience of 40 million competitive and enthusiast cyclists, and many of those lie in the traditional cycling nations of Central Europe, so in this market alone there is huge growth potential.”

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Zwift has logged over 410 million virtual miles. And more than one million people have created accounts on Zwift so far.

“We are delighted to be continuing the journey with Zwift,” explained Novator partner Birgir Ragnarsson. “We firmly believe in the enormous potential of Zwift and this is why we have chosen to invest further.”

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This year, Zwift also introduced Zwift Run and Zwift RunPod, which is a Bluetooth device that taps into data from a treadmill at home or the gym. And it can sync seamlessly with the Zwift.

True co-founder Paul Cocker said that this investment will enable Zwift to present a more advanced offering to a growing audience of cyclists and runnings who are in need of new ways to train and remain active while indoors. And Causeway Media and Boston Celtics owner Wyc Grousbeck pointed out Zwift already emerged as a leader in the cycling space on a global scale.