Peloton raised more than $300K in 30 days during its Kickstarter campaign

Raising the price of a Peloton bike increased the company's early sales—and that's part of why the bikes are so expensive

The original Peloton stationary bikes sold for about $1.2K, but Peloton founder John Foley said that price point made consumers skeptical of the product's quality. After increasing the price of a bike to $2K, Foley said people started to believe it was a quality product, and sales soon increased.

More than 400 investors turned Peloton down in its initial funding rounds

Peloton founder John Foley said investors rejected the company's initial funding requests because there was no clear indication of what the market for at-home fitness classes looked like. Ultimately, more than 200 angel investors gave the company its first round of cash. (Some users may experience a paywall.)

Peloton hit a million subscribers in June of 2020

The COVID-19 pandemic ushered in record-breaking sales for Peloton, as gyms closed and at-home fitness classes became the new norm. However, Peloton struggled to keep up with the increased demand. As the COVID-19 pandemic's lockdowns lifted, many people returned to the gym, reducing their need for on-demand at-home fitness classes. Some say Peloton's strong subscriber base is the ticket to helping the company eventually become profitable.

Peloton's founder once said the company 'sells happiness' before a disappointing initial public offering

Ahead of the company's IPO, Peloton founder John Foley told investors that "on the most basic level, Peloton sells happiness." However, the inspirational sentiment didn't stick with investors—the company closed the day of its IPO with stocks trading down 11% from the IPO price. (Some users may experience a paywall.)

The COVID-19 pandemic both boosted Peloton's business and shook it up completely

While demand for Peloton's at-home fitness equipment soared during the pandemic, the company didn't necessarily have the infrastructure to support the breakthrough sales. In 2021, Peloton bought Precor—a fitness equipment manufacturing company—to help boost domestic production and decrease a backlog of orders.

Peloton makes most of its money via monthly subscriptions

Peloton has two core revenue streams: the exercise equipment it sells and the company's monthly subscription that gives users access to its class library. More than half of Peloton's revenue comes from the company's core product, the monthly subscription. Its "Peloton App+" membership tier is $28.99 per month.

Owning a Peloton has become a status symbol

Given the relatively high financial barriers to entry—with its cheapest bikes selling on its website for almost $2K—owning a Peloton has become a status symbol for some, representing the disparity between access to fitness between the upper and lower classes in the US (especially during COVID).

Peloton pays artists more for music than most streaming platforms because the on-demand classes are technically live performances, so Peloton has to pay both for the rights to the song itself and for the right to actually play the song.

The controversial 'Peloton Wife' ad from 2019 cost the company more than $1B in market value

The 2019 ad of a man gifting his wife a Peloton exercise bike sparked a wave of controversy, with some calling the ad sexist and fatphobic. The ad's backlash decreased the company's market value by $1.6B.

How Peloton got moms hooked

Peloton's at-home workout classes were a game-changer for parents, giving them a chance to squeeze a workout in without leaving the house. The community group feature on Peloton created a sense of community that made users incredibly loyal to the brand.

In November 2025, Peloton issued a recall on more than 800,000 bike seats

Years after high-profile recalls on the treadmill due to reported injuries and even a death, Peloton issued another recall on the Peloton Plus bike seat. The company said it received three reports of the seatpost breaking.

The fitness industry has seen a lot of fads—and Peloton might be one of them

Like SoulCycle and Tae Bo, Peloton has struggled to stay at the forefront of the fitness industry. Despite periods of incredibly high interest and high-profile users (like the Obamas), Peloton has lost many users since the pandemic ended—and has struggled to add more. (Some users may experience a paywall.)

Peloton's success is partly due to users' relationships with instructors

Despite Peloton's online model, most users feel a deep connection with the instructors and have created community groups around their shared identities (like being a mom or a lawyer). The relationship users have with their instructors has fueled consistent engagement and paved the way for instructors to take on personal brand deals. (Some users may experience a paywall.)

Peloton paid a $19M fine for its handling of treadmill injuries

In 2021, a six-year-old died after getting caught underneath a Peloton treadmill. A federal investigation into the company revealed that Peloton knew about injuries on the treadmill as early as 2018 and failed to report the incidents to the US Consumer Product Safety Commission.

Peloton instructors have built expansive personal brands

Outside of teaching Peloton classes, many instructors have amassed large social media followings and brand deals—ranging from modeling for Puma and Adidas to "Dancing With The Stars" appearances. On top of their influencer work, leading instructors at Peloton—like Cody Rigsby, Emma Lovewell, and Robin Arzón—reportedly earn salaries of more than $500K.

The word 'Peloton' comes from the word for the main group of riders in a cycling race

The word itself is French for "ball," but became the inspiration for the word "platoon" in the 17th century to describe a group of soldiers. Now, it's a common cycling term and the main focal point in cycling races.

John Foley was the president of e-commerce at Barnes & Noble before founding Peloton

Foley worked for Barnes & Noble during the company's race against Amazon to dominate the e-reader market (Barnes & Noble had the Nook and Amazon had the Kindle). Foley says his time working for Barnes & Noble helped him learn the business of digital media, which is a core element of Peloton's business.

Jenn Sherman was the first Peloton instructor

Jenn Sherman sent an email to Peloton with the title, "This is why you need to hire me." After auditioning, she became the very first Peloton cycle instructor. Since then, she's amassed a loyal following for her brash personality.

In 2021, Peloton instructor Cody Rigsby came in third place in 'Dancing With The Stars'

Rigsby has the largest social media following of any Peloton instructor as of this writing and is reportedly one of the highest-paid instructors. When he competed on the show in 2021, some fans felt like his cult-like following from Peloton kept him on the show, despite not being the strongest dancer.

Startups fundraise in 'rounds' as they prove out their business and scale

When startups take on outside funding, those investments are divided into different "rounds." These rounds are catered to different stages in a startup's life cycle—a startup often needs different types of investors and amounts of funding at different stages of the business. For instance, a pre-seed investment round can include investments ranging from about $25K to $500K, whereas a Series D investment can be hundreds of millions of dollars.

Many startup founders pull out-of-the-box stunts to get their businesses off the ground.

One Facebook investor turned $500K into $1B

Peter Thiel was Facebook's first big investor. In 2004, he invested $500K into the social network, long before the company owned Instagram or renamed itself "Meta." In 2012, when he sold off most of his stake, he turned that initial $500K investment into more than $1B in cash.

Peloton, 'And Just Like That …,' and Chris Noth: all about Mr. Big's Peloton death and the following ad

In the "Sex and the City" spin-off "And Just Like That …", Mr. Big—played by Chris Noth—dies after having a heart attack after a Peloton class. In real life, the Peloton team had not been informed of the plot point. Peloton worked quickly to create an ad starring Noth in just two days in an attempt to get ahead of the story. But very soon after, Noth received public sexual assault allegations, leading to Peloton pulling the ad.

Seed funding is often the first round of capital that a startup raises

Early-stage startups often try to secure seed funding from investors in order to take their idea from concept to reality.

More than $3.5B has been invested through AngelList

AngelList was created to connect startups and angel investors. It’s evolved since its 2010 founding and has been used by companies like Uber and OpenSea.

Elon Musk joined Tesla in 2004, investing $30M and becoming chair

The company went public in 2010, raising $226 million in its IPO just two years after beginning production on its first car. Tesla's first Supercharger stations were launched in 2012 with six locations in California.

ESPN launched X Games in 1995 with a $10M investment

ESPN invested a reported $10 million in the original 1995 “Extreme Games”—the production cost that launched action sports into mainstream culture and drew nearly 200,000 spectators to its debut in Rhode Island.

YouTube was acquired by Google for $1.65B in stock during its second year

In 2006, Google acquired YouTube for $1.65B, only two years after its launch. Sequoia Capital, one of Silicon Valley's best-known venture firms, was an early investor in the streaming video platform, seeing it as the next step in the evolution of user-generated content that flourished online during the mid-2000s.

A successful angel investor can multiply their investment by 3 to 10 times.

PayPal was started in 1998 by Peter Thiel

By the year 2002, PayPal went public for the first time—but that was far from the end of its business story. eBay later bought PayPal, then eventually spun it off. PayPal IPO'd for a second time in 2015.

The first private equity fund was launched in 1960

At the time, the industry—and the public's understanding of it—was rather limited, and few private equity firms existed until the 1980s. The first leveraged buyout is thought to have taken place in 1955.

GameStop stock began a meteoric rise in January 2021, rallying from a low of $2.57 to as high as $438 when Keith Gill helped mobilize retail investors to drive prices higher

Keith Gill was a financial advisor who posted on social media under usernames including "Roaring Kitty." Backing from Chewy founder Ryan Cohen, who became GameStop's CEO, took things up a notch.

Startup accelerators offer mentorship and seed funding in exchange for equity

Those programs, such as Y Combinator and Techstars, not only offer expert advice to founders, but also seed funding in exchange for equity. The goal is to help young startups learn from successful companies, making it more likely they attract venture capital.

PetSmart and Hilton are among 10 of the most famous leveraged buyouts in history

Some of the most famous leveraged buyout deals include Blackstone's 2007 acquisition of Hilton Hotels, in which Blackstone took the then-public company private and then returned it to the public markets in 2013. A British PE firm bought PetSmart for $9B in 2014—one of the most expensive leveraged buyouts since 2007.

Digital coupon platform Groupon IPO'd in 2011 at a $17.8B market cap, but as of 2024 was worth just $103M—a 99.4% decrease.

Roller coasters can cost millions of dollars to make, but they often offer a substantial payoff

Over 6,000 roller coasters are in operation around the world as of 2025, with ongoing demand to build more each year. Despite being costly (some theme parks pay upwards of $50M for these rides), their financiers are able to justify the investment when considering the long-term value of a ride that sticks around for decades with daily streams of visitors.

IPOs that failed

Plenty of private companies fail once they try to go public. Failing can mean shares sell for less than their initial asking price on its IPO date, or it can look like a company pulling out of the IPO process at the last minute. Some companies with failed IPOs include Pets.com, Etsy, and Robinhood. Learn more about these companies and others here.

Startup accelerators that include more training activities, such as pitch competitions, tend to have better long-term success rates

That's according to a new study from Wharton. Y-Combinator, perhaps the most famous startup accelerator, currently has 16 alumni companies trading on the public market. But not every entrepreneur who joins a startup accelerator makes it big.

The story of Klarna, founded in 2005 before BNPL was a category

Klarna was founded in 2005 in Sweden under the name Kreditor long before BNPL apps became commonplace. The podcast hosts interviewed founder and CEO Sebastian Siemiatkowski in 2024, where he shared the story of how he built the company.

See how a top Peloton instructor spends her day

Robin Arzón is Peloton's VP of fitness programming and the lead instructor at Peloton. Besides teaching multiple classes a day, she reserves seven hours a week for her own personal training and says she trains like a high-intensity athlete. (Some users may experience a paywall.)

7 angel investors funded Google in its early days

Entrepreneur Shaan Puri shares how seven strangers acted as Google’s earliest angel investors. The first gave Google $100K without even putting his equity agreement in writing. The investors on “Shark Tank” use their personal funds to support startups, but they’re often more predatory about terms than typical angels.

7 prominent investors rejected Airbnb in its early days

Airbnb is arguably known as one of the most successful startup stories of all time. But back in 2008, many prominent investors rejected their pitch when they went out to raise money—and Airbnb's founder still has the rejection emails to prove it.

The story of Klarna's IPO

BNPY company Klarna went public on the NYSE in September 2025, roughly 20 years after it was founded. At the time, Klarna made roughly three-quarters of its revenue via merchant fees, charging a small premium for each purchase.

Pets.com is one of the most emblematic dot-com companies

Pets.com—an e-commerce pet store webpage—is a prime example of dot-com companies burning through investments. Despite being a popular and well-known brand, the company struggled to generate enough revenue to become profitable. After raising approximately $82.5M in its February 2000 initial public offering, Pets.com filed for bankruptcy in November of that same year.

Angel investors funded startups with nearly $28B in 2024

Statistics about the angel investing market show that billions are spent funding early-stage startups each year. Companies with more angel interest had higher success rates.

According to some estimates, roughly 75% of venture-backed startups fail, making startups inherently risky ventures.

How venture capital firms came to be

The venture capital firm that kickstarted an industry.

Global investing in startups hit a record $297B in Q1 2026

The level of startup funding around the world broke all previous records in Q1 2026 by a significant margin: Only $118B was raised in the previous quarter, and Q1's haul outpaced every full year of global VC activity before 2019. The increase was partly due to the enormous funding rounds from AI companies such as OpenAI and Anthropic.

PayPal's Peter Thiel turned his Roth IRA into $5B

In 1999, tech titan Peter Thiel had a Roth IRA with roughly $2K in it. By 2019, that tax-free account was worth $5B. For context, the average Roth IRA was worth roughly $39K at the end of 2018. Naturally, Thiel had a few investment options that the average person probably doesn’t have access to—but the story of his IRA’s boom is nonetheless fascinating.

Private equity firms often use leveraged buyouts to acquire new companies

In a leveraged buyout or "LBO," private equity funds finance acquisitions with debt secured by the target company's assets and cash flows. The PE firm aims to improve operations and leverage the company's profile to pay down debt, thereby increasing equity value.