Peloton was turned down by 400 investors; it’s now worth $4 billion

Peloton

• 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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