Billionaire hedge fund manager Steve Cohen is the newest investor in fitness startup Mirror.
Cohen’s venture firm Point72 Ventures, which is separate from his Point72 hedge fund, led a $34 million funding round for the year-old company. Cohen will also join the board.
Mirror is one of many companies tapping into the fitness streaming trend, including most prominently Peloton, which recently went public. Mirror sells a mirror that doubles as a streaming device, which customers use to stream live fitness classes and simultaneously watch themselves working out. At a $1,500 a pop, Mirror’s hardware is cheaper than Peloton’s bikes and treadmills, which start at $2,000 and $4,000, respectively. But monthly subscriptions for classes are the same for both, at $39.
While these subscription fitness companies appear to have a loyal fanbase, that hasn’t transferred to profits. Peloton lost $245.7 million in the 12 months to June. Investors haven’t reacted well: Peloton stock fell 11% below its $29 IPO price on its first day of trading last month.