Anthony Davis # 3 of the Los Angeles Lakers shoots the ball against the Miami Heat during game four of the NBA Finals on October 6, 2020 at AdventHealth Arena in Orlando, Florida.
Nathaniel S. Butler | National Basketball Association | Getty Images
Performance technology company Hyperice has closed a $ 48 million Series A funding round, giving the company a valuation of $ 700 million, CEO Jim Huether told CNBC this week.
The round of funding includes a list of prominent athlete investors, including the National Basketball Association stars Anthony Davis, Chris Paul, Russell Westbrook, DeAndre Jordan and the new Philadelphia 76ers coach Doc Rivers. Tennis star Naomi Osaka, who won the US Open 2020, is also an investor.
The company did not disclose each athlete’s stake in the company or the amount of their investments.
The company specializes in performance recovery products, including its Hypervolt massagers, which target soft tissue pain and muscle recovery. In their new sponsorship deal with the NBA, the massage devices now sit under each player’s seat during games.
Hyperice has grown in popularity among athletes, including Mahomes, who has used the company’s product since his days at Texas Tech University.
Osaka added, “Since using Hyperice I have realized the importance of recovery in order to get the most out of my training and prepare my body for competition. Hyperice has improved my body and overall health and I know this is more fundamental Meaning will be. ” I have a long and healthy career so I’ve invested and wanted to use my platform to encourage every athlete to take recovery seriously. “
In an interview with CNBC on Tuesday, Huether described Serie A as “one of the most iconic rounds in health technology.” The company was only looking for $ 30 million but was oversubscribed. The NBA and the National Football League also joined the company as investors.
“The athletes and the leagues have certainly helped us tremendously in authenticating and validating the technology, expanding it and creating more reach so people can see the benefits of the technology,” said Huether.
The Series A round was led by investment advisory firm Main Street Advisors and private equity firm S.C. Holdings.
Hyperice said it would use the funds to expand its artificial intelligence capabilities to enhance its new ones HyperSmart technology and app. The company also added Kansas City Chiefs quarterback Patrick Mahomes as an equity partner last week and will use Mahomes’ name and image to expand globally.
Other NFL players who have joined this funding round include J.J. Watt, Jarvis Landry and Christian Mccaffrey.
In an email to CNBC, Mahomes praised Hyperice’s innovation in “new equipment and technology,” adding that the company “has a great opportunity to grow its customer base well beyond the professionals”.
Hyperice will use $ 48 million in Series A funds to improve its new Bluetooth and artificial intelligence platform, the HyperSmart App.
In March the company acquired The compression system from NormaTec, which helps athletes restore muscle tissue. “Now that Hyperice and NormaTec are one, they are undoubtedly leaders in the restoration technology category,” said Mahomes.
Huether, who said the company had sales of $ 100 million in 2019, said Hyperice is forecasting sales “well in excess of $ 200 million this year.” The company aims to gain more market share in a sports technology market that’s expected to be valued at $ 30 billion by 2024.
Hyperice products are available from retailers including Nordstrom and Bloomingdale’s. Huether said “one of the points of expansion is looking at international retailers” in Europe, Asia and Australia “more on the consumer electronics side.
When asked if Hyperice was planning an IPO, Huether did not rule out the option, but noted that Hyperice was “highly profitable” and has no current plans to raise funds.
“We will continue to expand our position internationally, continue to advance our technology, expand our software capabilities, bring out products, and I think we will have many options,” he said. “We want this to be a billion dollar company within the next three to five years.”