WHOOP is a leading smart wearables ecosystem that combines AI, a powerful wearable, and an advanced App to enhance performance and trackability. The platform enables athletes to track crucial metrics including recovery, stress, sleep, respiratory condition, and heart rate, to name a few. Its easy-to-use interface and affordability have helped WHOOP remain a strong competitor in the market.
WHOOP’s positioning and products have added to the demand for its shares. However, the company has not directly stated that it will go public. Consequently, investors will need to acquire pre-IPO shares to gain a current ownership percentage of the company. Here’s what you need to know about WHOOP Pre-IPO shares.
What is WHOOP?
WHOOP is a smart wearables manufacturer and service provider based out of Boston, MA. It was founded in 2012 by three entrepreneurs named Will Ahmed, John Capodilupo, and Aurelian Nicolae. Their goal was to create a no-nonsense wearable that could provide unmatched trackability and insight into the human body at an affordable rate.
At the time of the launch, wearables were beginning to gain popularity. WHOOP provided a lower price point and better data points. It did away with the bells and whistles in place of more effective sensors and features. For example, the WHOOP wearable has no screen.
Source – WHOOP Website
The decision to eliminate the screen makes sense when you consider that the device can be worn anywhere and that the screen is the biggest hindrance to weight, performance, and battery life. Instead, WHOOP wearables directly interface with your smartphone, eliminating these issues and enhancing capabilities.
The WHOOP 4 is the latest iteration of the company’s flagship product. This advanced wearable combines sensors that track recovery, training, sleep, and more. It features a more durable and comfortable strap to enable longer periods of use. Additionally, it has a revamped battery and improved water and dust resistance.
The WHOOP 4 interacts directly with the WHOOP smartphone app. The app is free to download on both iOS and the Android Play Store. This platform supports full personalization, enabling users to access their data to create more intricate recovery tracking. In this way, the app provides a new level of insight into human performance according to company documentation.
Another impressive feature that has helped WHOOP secure a position at the top of this competitive market is the WHOOP Coach feature. This AI-powered chatbot operates as a personalized coach. Users can ask the coach questions, test routines, request feedback, and much more. The AI model is powered by OpenAI, making it extremely smooth and capable, adding to the overall value of the WHOOP ecosystem.
Historical WHOOP Rounds
Summary of WHOOP Funding:
- Total Funding: WHOOP secured $406M across 10 funding rounds.
- Largest Round: WHOOP’s largest funding round secured $200M on August 30, 2021.
- Investors: A total of 34 institutional investors and 14 Angel investors back WHOOP
- Latest Round: The latest funding round raised an undisclosed amount and was held on November 15, 2022.
Funding Rounds Breakdown:
- 2 Seed
- 3 Early-Stage
- 4 Late-Stage
- 1 Debt
Key Investors:
WHOOP has support from several prominent investors including Virgil van Dijk, IVP, SoftBank Vision Fund, Two Sigma Ventures, Promus Ventures, CAVU Consumer Partners, NextView Ventures, D20 Capital, LionTree, Accomplice, Kevin Durant, Larry Fitzgerald, Tiger Woods, Justin Thomas, Eli Manning, Patrick Mahomes, Collab Fund, Jack Dorsey, Mike Novogratz, Accomplice, Durant Company, Mousse Partners, Accomplice, Atlas Venture, Founder Collective, NextView Ventures, Promus Ventures, Valley Oak Investments, Collab Fund, and more.
Investor data is sourced from Traxn
Why Invest in WHOOP?
There are lots of reasons why investing in WHOOP makes sense for the right traders. For one, the company has a solid subscription-based business model. It’s straightforward and effective. Users sign up and register for a selected subscription period, ranging from multiple-year options to family plans and more.
Source – WHOOP App
There’s also a free trial that allows anyone to experience WHOOP’s offerings for 30 days The decision to add a free trial was a smart maneuver that has helped the company create unique marketing strategies to get users in the door. Also, the company has built up its customer base by providing much better data than multi-purpose devices like the Apple watch.
Focus on Users
Another reason you should consider investing in pre-IPO shares of WHOOP is its focus on clientele. The company’s business model places users first. You can see this approach in every facet of their business model from their straightforward app to the no-frills devices. The WHOOP 4 provides high performance, long battery life, and the ability to customize your straps to suit your style.
Community Support
Another positive aspect of the WHOOP movement is its community. Like a real gym, excitement, and inclusion can help drive results. The WHOOP community is active. It features professional athletes and those serious about improving their health. The developers recognized the need to expand this community, adding social media-friendly features like the ability to superimpose stats on your photos. These options help to enhance community interactions and inspire new users.
Team Work
WHOOP users can join teams and further their goals and excitement. Once you’re on a team, you can compete against other teams or members. Use the friendly competition to improve your results and show the world your dedication. The cool thing about the team feature is that it opens the door for additional interactions as WHOOP expands its digital ecosystem options.
AI Interactions
Another major reason investors continue to see WHOOP as a market pioneer is its AI systems. WHOOP users can ask their virtual coach questions and get responses based on real-time data sourced from their performance. This level of personal insight used to require a team of professionals to accomplish, now anyone can enjoy it for a few bucks a month.
How to Buy WHOOP Pre-IPO Shares
The hope is high that WHOOP will go public. However, no statements have been made. Consequently, WHOOP remains a privately held company, meaning that you’ll need to utilize a specialized approach to access shares. Here is what you need to consider.
1. Pre-IPO Secondary Marketplace
Secondary markets are purpose-built exchanges that connect pre-IPO shareholders with potential investors. These marketplaces can offer these assets because they work closely with employees, early-stage investors, and venture capitalists, which are crucial to the company’s pre-IPO growth.
Investing in pre-IPO shares for WHOOP could open the door for additional ROIs if the company’s valuation is less than when its IPO launches. It’s common for company valuations to increase following an IPO. As such, it makes sense to add pre-IPO shares to your portfolio before the firm announces plans to go public.
Secondary marketplaces have many requirements. Here are some concerns you should be made aware of:
Eligibility: Notably, this approach requires you to be an accredited investor, meaning you will have to show at least $1M in liquid assets to qualify.
Liquidity: Pre-IPO shares can’t be traded like regular shares. They often include some lockup restrictions that prevent you from trading them before the IPO. Some firms have permanent “no sell” clauses that prevent any transfer of the shares following your investment.
Linqto is a reputable investment platform that connects accredited investors with pre-IPO shareholders in a secure manner. The network streamlines pre-IPO investing via an easy-to-navigate interface that provides access to all relevant data at a glance. Accredited investors seeking pre-IPO shares in WHOOP should consider Linqto.
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2. Private Equity Firms
Private equity firms gain access to pre-IPO shares during investment rounds. They then offer these shares to high-net-worth accredited investors with a commission. Notably, private equity firms are known to have extra stipulations, including blocking the sale of shares for years in some cases.
3. Employee Equity Sales
Many consider employee equity sales as the best way to acquire pre-IPO shares in WHOOP. This method of acquiring pre-IPO shares requires you to connect with former employees. It’s common for companies to issue shares as part of an incentive package. Notably, this profit-sharing method has become more popular, leading to more pre-IPO share opportunities for investors.
Private Transactions: there are a lot of hoops you will need to jump through to complete a private pre-IPO transaction, including creating specific legal agreements, conducting valuations, and setting in place any limitations on the transfer of the asset.
Brokerage: Brokers will take a lot of the confusion out of the pre-IPO process. These professionals can guide you through each step, ensuring full compliance and avoiding common errors untrained professionals make.
There are several risks that you should consider before jumping into the pre-IPO shares investment arena. Here are the top concerns:
Liquidity Risk
If you are looking for an asset that you can sell right away, pre-IPO shares are not the best option. These investments can include sales and transfer clauses that prevent the transfer of the asset until certain criteria, such as the IPO’s completion. It’s even common for pre-IPO shares to require you to wait years before gaining the ability to sell your assets.
Regulatory Risk
The blockchain market has seen considerable scrutiny from regulators and lawmakers. While the technology is far better understood than in its early days, there are still many lawmakers who see it as a threat to the traditional financial system. As such, you need to always consider how new regulations could affect the value of your pre-IPO shares.
Market Risk
Purchasing pre-IPO shares in WHOOP means that you stand behind the project and its team. The company has secured a reputation for excellence and has previously expressed a desire to go public. However, no concrete data has been provided yet. As such, it’s vital to understand that the blockchain market is an active space that experiences strong fluctuations that could result in a different share value between now and any future IPO launch.
Valuation of Shield AI and Future IPO
WHOOP received a valuation of $3.6B as of Aug 30, 2021. This valuation places WHOOP in Unicorn status. The company achieved this level due to multiple reasons. The executives have kept a straightforward and transparent approach to their offerings, eliminating overhead and complications wherever necessary.
There’s a lot of speculation surrounding WHOOP’s IPO aspirations. Several analysts see this company as well-positioned for an IPO in the coming months due to its strong community and investor support. However, the firm hasn’t stated plans to host an IPO yet, leaving only pre-IPO shares available.
If WHOOP announces an IPO, it will be met with strong support due to the company’s history and backers. For now, its straightforward business model and focus on product performance continue to drive pre-IPO share demand up.
Investing in WHOOP Pre-IPO Shares Conclusion
Investing in WHOOP Pre-IPO shares opens the door for additional returns and risk. Pre-IPO shares come with additional caveats that you need to consider, such as lock-up periods. Also, there’s no guarantee that a company will remain favorable between the listed IPO date and its first announcement. As such, you need to be thorough in your research.
Be sure to conduct in-depth studies on WHOOP financials and backers before making any final decision. It’s recommended that you consult a financial expert to ensure that your investments remain within your risk appetite. For those who follow these steps and decide that WHOOP fits their portfolio, there are a lot of potential upsides to consider.
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Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Pre-IPO shares are typically available only to accredited investors and carry significant risk. Always perform thorough due diligence and consult a financial advisor or legal expert before making investment decisions.