You may be familiar with a program called Lumosity. If you’re currently an adult, you may remember advertisements for the brain-training platform of Lumosity that began around 2007. Lumosity’s ads claimed that using the application, which was available on the company’s official website, would do things like boost users’ ability to remember, pay attention without skipping a beat, process incoming information at high rates, and solve problems more accurately and quickly.
All considered, Lumosity was said to make users smarter, when the company’s assertions are boiled down to their simplest form.
The background of Lumosity
Lumosity should not be thought of as a company. Rather, Lumos Labs is the company responsible for creating Lumosity, an Internet-based application filled with hundreds of different games that tested stuff like people’s ability to remember patterns within just a few seconds, for example.
Lumos Labs was created by a trio of clever entrepreneurs: Michael Scanlon, David Drescher, and Kunal Sarkar. After two years of hard work spent developing the company’s web-based platform, which could be found at Lumosity.com, Lumos Labs kicked the company’s promotional campaign into effect and started welcoming users to try the brain-training platform for themselves.
The financial history of Lumos Labs
Despite the initial success of Lumosity, Lumos Labs never went public. The company was also never purchased by any company that publicly traded its stock on exchanges such as the Nasdaq or the New York Stock Exchange.
As such, Lumos Labs’ financial statements have never been made available to the general public. Financial statements, for the record, include the balance sheet, statement of cash flows, retained earnings statement, and income statement. The income statement lists things like revenue, expenses, and profit, as well as detailed breakdowns of revenues and expenses.
The United States Securities and Exchange Commission (SEC) requires publicly-traded companies to share such information if they offer their stock on such financial instrument exchanges. Financial statements submitted to the SEC are soon thereafter made available to the public.
While audited financial statements haven’t been made widely available, some financial statistics over the years have, in fact, been shared by Lumos Labs with the public.
In 2013, for example, Lumosity drummed up $23.7 million in revenue, says Inc. Magazine.
Some websites, such as Owler, offer pure estimates of companies’ financial information. However, it’s not even worth reporting what such websites have recently estimated as revenue or profit for Lumos Labs or its brain-training program, as they’re nothing more than speculation.
Looking back at Lumos Labs’ funding history
Something that is, in fact, available is the history of Lumos Labs’ funding receipts from private investors. In 2007, the private corporation raised $400,000.
The next year, in 2008, FirstMark Capital, Norwest Venture Partners, and Harrison Metal Capital collectively provided Lumos Labs with $3 million in Series A funding.
Although its amount of Series B funding isn’t known, in 2011, Lumosity brought in $32.5 million in Series C funding; in 2012, it brought in $31.5 million in Series D funding. Menlo Ventures led Series C funding, whereas Discovery Communications led the following year’s found of funding.