Tonal Systems Inc., the at-home fitness startup, is seeking to raise capital at less than a third of its previous valuation and is considering replacing its chief executive officer, according to people familiar with the matter.
The company is in talks for funding that would value it at $500 million or lower, the people said, asking not to be identified because the matter is private. That’s a deep cut compared to last year’s $1.9 billion valuation, reflecting the slowdown in the home fitness industry, but talks are still ongoing and the number could change.
