Jawbone gets more than $100M in new funding to keep up with demand for wearables

jawboneup

It’s been a busy year for Jawbone. Over the past several months, the company behind the Up fitness-tracking wristband and Jambox wireless speaker has acquired nearly a handful of companies, including Massive Health and BodyMedia. Now, it’s raised more than $100 million in a combination of debt and equity financing.

First reported by Fortune (and independently confirmed by GigaOM), the startup reached out to investors because it needed more cash to keep up with demand. It worried that raising an equity round might take too long, so it opted for debt financing to fill millions of back-orders and prepare for the holiday season. According to Fortune, Jawbone raised $93 million in debt financing from Silver Lake, Fortress Investment Group, J.P. Morgan and Wells Fargo.

The startup has also raised an additional $20 million in equity funding from existing supporters like Andreessen Horowitz, Kleiner Perkins, Khosla Ventures and Sequoia Capital. The equity funding is apparently connected to a future round that will have a new lead investor.

The raise comes amid booming interest in wearable technology. Jawbone’s Up band faces competition from Nike’s Fuelband, Fitbit’s trackers (see disclosure) and similar products from other health and fitness technology companies. Mobile apps like Noom Walk and Moves are increasingly making the smartphone a contender in the wearable computing space.

Jawbone has been doubling down in its efforts to court consumers interested in wearable technology and so-called quantified self tools through its acquisitions in health, wearable technology and design, as well as through the recent hire of a former LinkedIn data scientist to lead data efforts at the company.

Disclosure: Fitbit is backed by True Ventures, a venture capital firm that is an investor in the parent company of GigaOM/paidContent. Om Malik, founder of GigaOM, is also a venture partner at True.

loading

Comments have been disabled for this post