By Atish Davda, CEO of EquityZen.
In what has been a slow jog for technology IPOs in 2015, wearable fitness tracker Fitbit Inc (NYSE: FIT) plans to sprint out of the gates with a $790 million offering.
As we've made a habit of doing, EquityZen ran the numbers behind the company's success, and tracked the returns for Fitbit's early investors. A few venture capital investors stand to earn a healthy return on investment, as seen below:
In January 2008, founders James Park and Eric Friedman got Fitbit started with a modest $425,000 investment from friends and family. That investment is now worth $204 million: not a bad way to reward the ones that believed in you.
A big VC investor payday.....
True Ventures, SoftBank Capital, and Foundry Group are the big VC winners in Fitbit. In fact, at $20 per share, Foundry Group's investment will be worth over $1 billion. SoftBank poured $15 million into the company's private Series D financing in August 2013, and will generate a 12x return in less than two years.
...but still founder-friendly.
Not only have the two founders maintained a decent amount of managerial control of Fitbit (James and Eric remain the company's CEO and CTO, respectively), they have kept a healthy percentage of the stock as well. Following the IPO, each founder will retain 10.9 percent of the business, worth $400 million in equity value. That should be enough to raise anyone's heartbeat.Fitbit Vs GoPro
A number of comparisons have been made to GoPro Inc (NASDAQ: GPRO), the camera hardware company that went public a year ago and jumped over 100 percent on the first day of trading. We took a look at the revenue multiple that Fitbit would "trade" at, based on various share prices. Keep in mind, GoPro currently trades at about a 5.2x multiple. At $20 per share, Fitbit's revenue multiple of 4.2x looks attractive in comparison:
Underlying the valuations for any technology company is that business's ability to grow. And Fitbit has done so at a calorie-burning pace, growing revenue 175 percent in 2014:
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