Expresso Fitness logo. (PRNewsFoto/Expresso Fitness) SUNNYVALE, CA UNITED STATES 10/16/2008
Dec 8, 2008 08:00 ET
Expresso Fitness(R) Receives Additional $14 Million in Funding Capital to Drive Growth of Company's Portfolio
SUNNYVALE, Calif., Dec. 8 /PRNewswire/ -- Expresso Fitness(R), the leading supplier and developer of interactive cardio fitness systems, announced today that it has completed a debt and equity funding event for a total of $14M. The capital will be used to fuel Expresso's revenue growth by expanding the company's product portfolio and market reach. Silicon Valley Bank opened a new $7 million working capital line with Expresso. The equity round was joined by all existing investors including Sierra Ventures, Physic Ventures, and Enterprise Partners Venture Capital.
"Silicon Valley Bank is pleased to support Expresso Fitness as its long term partner," said Teresa Li, senior relationship manager, Silicon Valley Bank. "The company has tremendous potential, as evidenced by the robust revenue growth the company has seen in a difficult economic climate."
Jeff Loomans, Sierra Ventures partner and Expresso Fitness board member, added, "Expresso has continued to deliver very strong revenue growth by providing outstanding business value to fitness establishments in both good and challenging economic times. They are one of the fastest growing companies in the Sierra portfolio, and we believe they have a very bright future."
With the introduction of the S3 line in October, which offers enhanced features and functions on both the upright and recumbent bike, Expresso Fitness has had a strong year with increased revenue growth -- specifically with the recumbent models. Recumbent sales have gone from 0% to 40% of the company's entire sales volume since Q2 2008.
"We are pleased to have a great investment team that has supported Expresso throughout its development, and we welcome Silicon Valley Bank as an integral part of this growth," Brian Button, CEO of Expresso Fitness, said. "We are now better armed financially to capture more market share from our competitors."
To date, riders of Web-enabled Expresso Bikes have logged 20 million miles and burned 700 million calories at leading fitness facilities across the U.S.
About Silicon Valley Bank
Silicon Valley Bank is the premier commercial bank for companies in the technology, life science, venture capital/private equity and premium wine industries. SVB provides a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 27 U.S. offices and international operations in China, India, Israel and the United Kingdom. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (NASDAQ:SIVB) , with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at http://www.svb.com/.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve. SVB Private Client Services is a division of Silicon Valley Bank. SVB Financial Group is also a member of the Federal Reserve.
About Sierra Ventures
Sierra Ventures, founded in 1982, is a privately held venture capital firm focused on investments across all areas of the Information Technology sector from semiconductors to enterprise software. Sierra Ventures has managed nine venture capital partnerships and currently has more than $1.5 billion of capital under management. Some of the firm's investments include 360Commerce (acquired by Oracle), Active Software (acquired by WebMethods), AmeriGroup (AGP), Authentec (AUTH), Centex (acquired by WorldCom), ConvergeNet (acquired by Dell), FatBrain (acquired by Barnes & Noble), Frontbridge (acquired by Microsoft), Healtheon (merged with WebMD), Interact Commerce (acquired by Sage), Intuit (INTU), Micromuse (acquired by IBM), OnAssignment (ASGN), OnLink (acquired by Siebel), Quinta (acquired by Seagate), StrataCom (acquired by Cisco), Sourcefire (FIRE), Sychip (acquired by Murata Manufacturing) and Teradata (acquired by NCR).
Enterprise Partners was founded in 1985 and is the largest venture firm headquartered in Southern California, with over $1.1 billion in capital under management. Enterprise focuses on seed, early stage and promising later stage companies across a broad spectrum of technologies and the life sciences.
Physic Ventures, founded in 2007 and based in San Francisco, is a venture capital firm committed to "investing in keeping people healthy." Physic Ventures partners with entrepreneurial teams to build leading businesses in consumer-driven health and sustainable living. Physic Ventures has invested in such firms as Dreamerz Foods, Elixir Pharmaceuticals, Novomer, and Pharmaca Integrative Pharmacy.