Anatomy of a Deal: How AV Evaluated and Invested in Oura

Oura is best known for its smart ring, a sleek wearable that tracks key health metrics — including heart rate, blood oxygen levels, skin temperature, and daily activity — delivering personalized insights through its companion app. It has attracted a diverse user base, from Jennifer Aniston to the England national football team, and has sold over 2.5 million rings. As one of AV’s top-performing companies in terms of multiple on invested capital (MOIC),* Oura continues to scale, expanding retail partnerships with Amazon, Costco, and Target while collaborating with major brands like the NBA, Equinox, and Best Buy.

This blog retraces the steps we took in adding Oura to our portfolio, unfolding both typical venture investment processes, as well as Alumni Ventures’ own unique perspective and approach. Those steps included

We’ll also use this case study to reflect on what we got right, what we could have done better, and the broader lessons this investment offers to founders and investors alike.

Curiosity, Connections, Conviction — And Perfect Timing

The Oura deal wasn’t accomplished overnight. Instead, it was the result of curiosity, persistent shoe-leather investigating, key relationships — and that elusive alchemy of good timing and good luck.

In early 2019, David Shapiro, Founding Partner of Alumni Ventures’ Blue Ivy Ventures (serving Yale University alumni and friends), was reading Why We Sleep: The New Science of Sleep and Dreams by renowned sleep expert Matthew Walker. The book reshaped his perspective on sleep as a foundational pillar of health. Inspired, he shared it with AV CEO Mike Collins, who offered a simple yet powerful suggestion: “You should reach out to the author. Sleep is an underinvested space.”

Taking the advice to heart, Shapiro connected with Walker through an AV Investment Committee member at Google/Verily. Their discussions reinforced his belief that sleep technology was ripe for investment — not just in software but in wearables.

That realization led him to Oura. Eager to experience the technology firsthand, Shapiro bought an Oura Ring and was so impressed that he began pursuing the company as a potential investment. Key connections paved the way:

In discussions with Oura’s team, Shapiro and others emphasized how AV’s extensive alumni networks could amplify the company’s brand and reach. Convinced, Oura’s CEO made room for Alumni Ventures in its 2019 Series B round — a pivotal period just before the company’s breakout growth.

At the time, Oura was already gaining traction as a leading sleep tracker, but the COVID-19 pandemic elevated it into a must-have health device. In March 2020, Oura partnered with UC San Francisco to study whether its technology could detect early physiological signs of COVID-19 in 2,000 frontline healthcare workers. A few months later, as the NBA prepared to restart its season, the league purchased 2,000 Oura rings to help monitor players, coaches, and staff for potential symptoms.

This surge in visibility and adoption cemented Oura’s reputation as more than just a sleep tracker — it was evolving into a comprehensive health monitoring tool. AV’s investment was perfectly timed to capitalize on this wave of rapid growth.

Why We Invested: Market Potential, Product Strength, and Strategic Backing

With the sleep tech market booming and Oura demonstrating strong traction, we saw a rare opportunity. Here’s what stood out:

The identity of a co-investor is not necessarily indicative of investment outcomes.

Risks and Uncertainties We Also Weighed

Even the most promising startup comes with certain challenges, and Oura was no exception. Here were some concerns we flagged in our pre-investment.

The Evolution of Our Thinking

Growth That Exceeded Expectations

Oura’s trajectory far outpaced our initial projections, with revenue surpassing $40 million by late 2019. At the same time, its customer base exploded from 3,000 to 150,000 in just three years — a remarkable feat that underscored its product-market fit and viral adoption.

Expanding Beyond Sleep: A Stronger Market Position

Oura successfully evolved from a sleep tracker to a broader health monitoring tool. The pandemic accelerated demand for remote health tracking, and Oura’s ability to measure body temperature and heart rate became an invaluable feature for early illness detection. This shift positioned Oura as a key player in the fast-growing digital health space.

Monetization & Subscription Success

One of our early concerns was Oura’s reliance on hardware sales. The company tackled this head-on by launching Oura Membership, a subscription service offering deeper insights and personalized health recommendations. This move:

Oura’s ability to scale, adapt, and monetize beyond hardware validated our confidence in its long-term potential.

Lessons From the Journey: Where Our Thesis and Diligence Held Strong

Broader Takeaways for Investors

The Oura Case Study: Closing Thoughts

Oura has been a standout investment for Alumni Ventures — one that reinforced our thesis on sleep tech as a high-growth category and underscored the importance of adaptability in a competitive landscape.

For investors, the key takeaway is clear: the best companies evolve. Oura’s strategic expansion into subscriptions, AI-driven insights, and broader health monitoring exemplifies what we look for in long-term winners.

The company’s success speaks for itself. Oura recently announced it had secured $200 million in its Series D funding round led by Dexcom, a giant ($28 billion market cap) in continuous glucose monitoring. The raise pushed Oura’s valuation to $5.2 billion — a nearly 40x increase from our initial investment.* We remain invested in Oura’s journey and excited about what’s ahead.

* Valuation increase according to the Multiple on Invested Capital (MOIC) metric. MOIC is equivalent to the multiple of return gross of fees and equals (Current Valuation + Amounts Returned) / Total Investable Capital. Reported performance would be lower if the impact of fees were reflected.

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