Jawbone bags another $250m off the back of wearables optimism

Jawbone is on the verge of completing a new funding round worth $250 million [£150 million] that brings the company value up to $3.3 billion [£1.97 billion].

Related: Jawbone reinvents itself with Era Bluetooth headset

Sources close to the situation told re/code that the funding round, which was oversubscribed, could eventually rise to $300 million [£179 million] and the lead investor is San Francisco’s Rizvi Traverse Management.

The company is led by Suhail Rizvi who could join the board at Jawbone as a result of the transaction and his firm has already made significant investments in a number of tech firms including Twitter and Square.

Jawbone was co-founded by CEO Hosain Rahman back in 2006 and since the wearables technology market started to take off it has begun to stockpile millions of dollars worth of investment that has seen its value eclipse the $3 billion [£1.8 billion] mark.

The firm was valued at just $1.5 billion [£898 million] as recently as the middle of 2011 and before the latest round of funding it had already managed to raise around $100 million [£59 million] in debt and equity funding and $250 million [£150 million] in venture capital.

It was also named as one of LinkedIn’s top 10 InDemand startups of 2013 midway through last year as it came seventh behind the likes of Cloudera, Dropbox, Violin Memory, Nimble Storage, Hortonworks and GoPro. LinkedIn’s findings were based on social interactions between upwards of 287,000 IT professionals in the San Francisco Bay Area and firms with fewer than 500 employees.

Other investors that have already injected money into the company and are likely to do so again in this round include Andreessen Horowitz, J.P. Morgan’s Digital Growth Fund, Kleiner Perkins, Khosla Ventures, and Sequoia Capital. The company board also includes the likes of Yahoo CEO Marissa Mayer, Yves Béhar and Ben Horowitz.

Related: An in-depth look at how wearable technology will develop in 2014

Jawbone’s latest item is the new Era Bluetooth headset that can be paired with an Android or iOS smartphone and allow easy access to apps on the go as well as allow the user to make calls directly from the headset as long as the smartphone is within 33 feet.