On Friday morning, baby tech company Owlet went public in a SPAC merger deal with Sandbridge Acquisition Corp. The company is trading for just under $10 per share on the New York Stock Exchange. 

As part of the deal, Sandbridge and the concurrent private placement (PIPE) will provide Owlet $135 million to speed up its product line and will boost the company's valuation to more than $1 billion. 

Kurt Workman, CEO of Owlet, said that there is a big market out there for baby tech. 

“There are 24 million people right now that are caregivers in this conception to kindergarten phase. And it's a really big job,” Workman said. “And I'm really excited because the money that we've gotten from this deal is six times more than the last capital raise we've done. It's a big investment. It's going to allow for a lot of expansion. We've gotten to where we're at today, which is, you know, we'll do $107 million in revenue this year.”

Founded in 2012, the company creates smart baby socks that can give parents and caregivers insights into a baby’s heart rate, oxygen levels and sleep patterns. 

WHY IT MATTERS 

Workman said the new infusion of cash will help the company grow its product line. He hinted that new tech focused on pregnancy and integrated care is on the horizon for the startup. 

“[We’re] $48 million in capital raised and just close to $140 million more. So I'm really excited about all that that means. And I think specifically we're going to continue on this theme of democratizing access to care. So we're going to work on the pregnancy band, which will help in pregnancy, a smart crib. We're integrating services like telehealth. And so we'll use the data from these devices to help close the loop at home.

“We're actively pursuing FDA clearance on multiple versions of our products. So all of that, I think, over the next 18 months is going to come together and you'll see this whole home ecosystem with integrated services for the first time in this category.”

THE LARGER TREND 

Before this acquisition, the company boasted $48 million in funding. The company has also been active on the research side. In March, the company announced results from a study published in The Journal of Pediatrics. The research, which was done with clinicians from Cleveland Clinic Children’s, the University of Michigan and the University of Utah, zeroed in on episodes of tachyarrhythmia for babies. 

“I think what's so unique about this is that this is a pretty nascent category,” Workman said. “There's not a lot of investment that's gone into technology for parents. And yet becoming a parent is one of the biggest changes as we go through life.”

There are other smart baby monitors on the market. Nanit makes wearable baby sleep trackers combined with a smart camera. The company is able to track an infant's sleep and breathing patterns. Today, Nanit has more than $50 million in funding dollars. 

Additionally, Cocoon Cam also developed a video-based smart baby monitor, which landed $4 million in funding in 2017.