Misfit is one of the leading fitness band makers. Recently, it was widely reported by Reuters and other sources that the Chinese smartphone giant Xiaomi is part of a consortium that has invested $40 million in the company. This appears to be part of a larger strategy by Xiaomi to invest in a variety of companies involved with wearable Health Tech products and services, though apparently this is the first U.S. company they have targeted.

The investors will get a seat on Misfit’s board of directors, as well as a board observer position.

This is an interesting development in that a Chinese company is investing in a smaller U.S. firm. It is certainly a sign of the globalization of this market, but also shows that companies in this country are developing technology and other assets that are attractive to companies on a worldwide scale.