GGV capital partners: Fitbit the unicorn is a recipe for?

note: hunting cloud Fitbit since set up to more than eight years time, the company is listed. Famous vc fund GGV capital is invested in the field of IOT smart manufacturers of wearable Misfit and tiles, to the success of Fitbit does he think, the following articles for it, turn from sina science and technology:

article/green – Solomon

last week, I read the Fitbit listed S – 1 file. Needless to say, Fitbit founded in eight years, has achieved remarkable results. Fitbit has been committed to the devices can be attached, and successful development for the upcoming company, any company founder can learn a lot in the Fitbit story. Here are some I collected in their S – 1 file valuable experience:

leading market share – in the Fitbit S – 1 file you can see, the Fitbit health movement track products in the market in 2014 won a 68% share of the market. In the past few years, in both market share and in terms of income, Fitbit experienced high growth. As I said before, in the technology industry, the market share leader in market capitalization and its market share is out of proportion. So the Fitbit listed what changes will bring to the company, let’s wait and see.

market expansion – there is no doubt that the Fitbit since its inception, has been actively expanding their product line, today, the company has developed a rich variety of motion tracking products. In addition, the Fitbit also launched its own intelligent weighing machine and recently acquired application Fitstar fitness, Fitstar the mobile content services for users provide fitness, for the Fitbit introduced a large number of users. I think investors are likely to ask a question is, from a long-term point of view, fitness activities to track how far the size of the product market. Fitbit team has been very good, through organic growth and development of ecosystem, they try to expand your potential market.

growth & amp; Operating leverage – Fitbit in unit capacity, active subscribers and revenue is very significant. Fitbit income rose by nearly 175% in 2014, the first quarter of 2015 revenue rose by more than 200% (although in the first quarter of 2014 revenues may be affected by the recall). Continued rapid growth in revenue at the same time, the company’s profits and cash flow has been growing steadily. Adjusted EBITDA in 2014 was $191 million, compared to $2015 in the first quarter of 2015. In the first quarter of 2015, through marketing generated more than $30 million in cash flow.

Financing history —

from the point of the latest news, in all unicorns and raised more than $100 million, or the Pre IPO companies, Fitbit financing history is very unique. According to the records of Crunchbase ranges, Fitbit just before the IPO raised $66 million in venture capital, including $2013 in mid – 2013 D round of funding, the market value of $2.21 per share, on the basis of fully diluted valuation of nearly $300 million (in terms of the current number of shares). So from the point of any combination of EBITDA and income situation, Fitbit seem hopes to be a unicorn, IPO for its investors bring huge economic returns for each wheel.

the Fitbit founders James Park and Eric Friedman in S – 1 file stressed that the company’s journey has only just begun. IPO will only become a milestone in the history of the company development, they hope to continue to focus on long-term development, at the same time of gratitude past achievements, more will focus on the company’s long-term development and transformation, remain modest. Because before I had work with Park for a while, it looks very reasonable – he is an ambitious person, visionary, and is also a have according to according to the work of the people. I think, the public investors should Park and Friedman and would be willing to support the team. Can be connected equipment market development potential and temptation will also push for investment, to attract more investors.

this is to say, Fitbit will in the future as a listed company is faced with challenges. Fitbit have few lawsuits about the product recall. Competition is everywhere.

in the future, Fitbit as a public company will meet the challenge. Fitbit has experienced several times about the product recall of litigation. Competition is everywhere. Anyway I am looking forward to see the Fitbit as a public company will be how to create the future.

to learn more knowledge, entrepreneurial innovation quickly add cloud network hunting WeChat public account: